What is the “big idea” behind the Crux of Capitalism (CoC) project?
Why is this project called the CoC?
What is the methodology behind CoC?
What important questions can the COC provide answers for?
Which time interval does the data available cover?
Which countries are covered and why?
Which sectors are included / which sectors are missing and why?
Which firms are included and why?
Is the coverage expected to change?
Who worked on the CoC project?
How are “zombie firms” defined?
How is accounting profit defined?
How is economic profit defined?
How is the interest coverage ratio (ICR) defined?
How is the weighted average cost of capital (WACC) defined?
How is Altman’s Z’’-score defined and what is the difference to Altman’s Z-Score?
How is the Effective Tax Rate defined?
What is the difference between accounting profit and economic profit?
What is the connection between corporate distress and value creation?
What is the relationship between market value and book value of firms?
Why are the Z’’-score and the ICR used as indicators of corporate distress?
Are the economic profit values provided on our website adjusted for inflation?
What are the causes and consequences of zombie firms?
Why do we not identify or label specific firms as zombie firms?