Month: May 2020

Stop Extrapolating. Start Predicting

Car Inc’s short-term and long-term sustainability model

In the previous article, Modtris model reverse-computes the historical operating metrics of Car Inc using only balance sheet and income statements from 2013 to 2019. With these operating metrics, the short-term and long-term sustainability of the company are simulated. Short-term: cash position under extreme scenarios are simulated. Long-term: financial outcome under constant level of financing…
Read more

DO CAR INC’S PAST FINANCIAL RESULTS MAKE SENSE?

Following the announcement of internal investigation of Luckin Coffee, Car Inc was immediately under fire for the guilt of association. Its stock price on HK stock exchange lost more than 50% value and subsequently Moody’s and S&P downgraded the company’s rating to Caa1 and CCC. The primary market concern may be that Car Inc, even…
Read more