Attachment 2

List of 14 Primary Variables Used in
the Acadia Model to Rank a Universe of 500 Securities (1)

 

  • TMC/Sales (latest fiscal year sales)
  • TMC/EBIT (latest fiscal year for EBIT)
  • TMC/EBITDA (latest fiscal year for EBITDA)
  • TMC/3-Year Average EBIT
  • TMC/3-Year Average EBITDA
  • TMC/TIC
  • TMC/TICAD
  • TMC/Assets (total assets from latest fiscal year balance sheet)
  • TMC/Assets and Accumulated Depreciation
  • Price to Equity
  • Return on Investment
  • Return on Sales
  • Size (defined as Total Market Capitalization)
  • Sales Growth (least squared growth rate for last three years)

Definition of Variables

TMC Total Market Capitalization. The total market value of the equity plus the book value of all interest-bearing debt.
EBIT Earnings Before Interest and Taxes. All non-recurring and extraordinary items are excluded.
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. All non-recurring and extraordinary items are excluded.
TIC Total Invested Capital. The book value of the equity and all interest-bearing debt.
TICAD Total Invested Capital and Accumulated Depreciation. The book value of the equity, all interest-bearing debt and accumulated depreciation.
Price to Equity Market value of equity divided by book value of equity.
Return on Investment EBITDA divided by TICAD.
Return on Sales EBIT divided by sales.
Size The total market capitalization of the entity.
Sales Growth The compounded annual growth rate of the last three fiscal years.