City of Anaheim - Audit Division Rating Type
2022 Taxi RFP Financial Review Total Pass 22 45% 31 63% Summary of Results Total Fail 25 51% 16 33%
Last Update: October 18, 2022 Total Inconclusive 2 4% 2 4% Total All Ratings 49 100% 49 100%
Ratio Type Ratio Description Formula How Results are Measured Rating
Measurements 2021 Rating 2020 Rating 2019 Rating Notes 2021 Rating 2020 Rating 2019 Rating Notes Working Capital This ratio measures a company’s
short-term financial health.
Current Assets -
Current Liabilities
Positive working capital indicates the company is
able to pay off its short-term liabilities. Negative
working capital indicates the company currently is
unable to meet its short-term liabilities with its
current assets.
Pass: >~$0
Fail: <~$0
Inconclusive: No info
available to calculate
the ratio
Fail Fail Fail 2021, 2020, and 2019
results were < $0 Pass Pass Pass
Current Ratio
This ratio indicates the company’s
ability to meet currently maturing
obligations.
Current Assets /
Current Liabilities
If the current assets of a company are more than
twice the current liabilities, then the company is
generally considered to have good short-term
financial strength. If current liabilities exceed
current assets, then the company may have
problems meeting its short-term obligations. The
higher the ratio, the more liquid the company is.
Pass: >= 0.75
Fail: < 0.75
Inconclusive: No info
available to calculate
the ratio
Fail Fail Fail 2021, 2020, and 2019
results were < 0.75 Pass Pass Pass
Gross Profit Margin
This ratio calculates the percentage
of revenue left after subtracting
the cost of goods sold.
Gross Profit /
Revenues
Generally, a company with a higher gross profit
margin than its competitors and industry is more
efficient.
Pass: Positive
Fail: Negative
Inconclusive: No info
available to calculate
the ratio
Pass Pass Pass Pass Pass Pass
Net Profit Margin
This ratio calculates how much
profit a company makes for every
$1 it generates in revenue.
Net Income /
Revenues
Generally, the higher a company's profit margin
compared to its competitors, the better.
Pass: Positive
Fail: Negative
Inconclusive: No info
available to calculate
the ratio
Pass Fail Fail 2020 and 2019 results
were Negative Pass Fail Fail 2020 and 2019 results
were Negative
Return on Assets
This ratio calculates how much
profit a company generated for
each $1 in assets.
Net Income / Total
Assets
Generally, anything below 5% is very asset-heavy
(manufacturing, railroads), and anything above
20% is asset-light (advertising firms, software
companies). Generally, the more asset-intensive a
business, the more money must be reinvested into
it to continue generating earnings.
Pass: Positive
Fail: Negative
Inconclusive: No info
available to calculate
the ratio
Pass Fail Fail 2020 and 2019 results
were Negative Pass Fail Fail 2020 and 2019 results
were Negative
Return on Equity
This ratio measures a company's
profitability by showing how much
profit a company generates with
the money shareholders have
invested.
Net Income /
Stockholder's
Equity
A business that has a high return on equity is more
likely to be one that is capable of generating cash
internally. Generally, the higher a company's
return on equity compared to its industry, the
better.
Pass: Positive
Fail: Negative
Inconclusive: No info
available to calculate
the ratio
Fail Fail Fail
2021 result was
negative; 2020 and 2019
results were False
Positives, both
numerator and
denominator were
negative
Pass Pass Fail 2019 result was Negative
Debt Ratio
This ratio calculates the proportion
of debt a company has relative to
its assets.
Total Debt / Total
Assets
A debt ratio of greater than 1 indicates that a
company has more debt than assets. A debt ratio
of less than 1 indicates that a company has more
assets than debt.
Pass: <= 1.0
Fail: > 1.0
Inconclusive: No info
available to calculate
the ratio
Fail Fail Fail 2021, 2020, and 2019
results were > 1.0 Pass Fail Pass 2020 result was > 1.0 Debt-to-Equity Ratio
This ratio calculates the proportion
of equity and debt the company is
using to finance its assets.
Total Debt / Total
Equity
Generally, company's with a higher ratio may be
more risky because they have more liabilities and
less equity.
Pass: <= 50%
Fail: > 50%
Inconclusive: No info
available to calculate
the ratio
Fail Fail Fail
2021, 2020, and 2019
results were > 50%
(False Negatives:
numerators were
negative)
Fail Fail Fail 2021, 2020, and 2019
results were > 50%
Cabco Yellow Results24/7 Taxi Cab Results
Liquidity: These ratios
indicate the solvency of
a company based on its
assets versus its
liabilities.
Profitability: These
ratios indicate a
business's ability to
generate earnings as
compared to its
expenses.
Financial Leverage:
These ratios are used to
get an idea of the
company's methods of
financing or to measure
its ability to meet
financial obligations.
24/7 Taxi Cab Results Total Cabco Yellow Results Total
Overall Final Rating
An overall result of Fail was provided
because the majority of analyses
resulted in Fails.
Overall Final Rating
An overall result of Pass was provided
because the majority of analyses
resulted in Passes.
City of Anaheim - Audit Division Rating Type
2022 Taxi RFP Financial Review Total Pass 22 45% 31 63% Summary of Results Total Fail 25 51% 16 33%
Last Update: October 18, 2022 Total Inconclusive 2 4% 2 4% Total All Ratings 49 100% 49 100%
Ratio Type Ratio Description Formula How Results are Measured Rating
Measurements 2021 Rating 2020 Rating 2019 Rating Notes 2021 Rating 2020 Rating 2019 Rating Notes Cabco Yellow Results24/7 Taxi Cab Results
24/7 Taxi Cab Results Total Cabco Yellow Results Total
Overall Final Rating
An overall result of Fail was provided
because the majority of analyses
resulted in Fails.
Overall Final Rating
An overall result of Pass was provided
because the majority of analyses
resulted in Passes.
Interest Coverage Ratio
This ratio measures of the number
of times a company could make the
interest payments on its debt with
its earnings before interest and
taxes.
Earnings Before
Interest and Taxes
/ Interest Expense
Generally, an interest coverage ratio below 1.0
indicates the business is having difficulties
generating the cash necessary to pay its interest
obligations.
Pass: Positive or $0
Fail: Negative
Inconclusive: No info
available to calculate
the ratio
Pass Fail Pass 2020 result was Negative Pass Fail Fail 2020 and 2019 results were Negative
Short-Term Debt
Coverage Ratio
This ratio measures the ability of
the company's operating cash flow
to meet its short-term obligations.
Operating Cash
Flow / Short-Term
Debt
Generally, the larger the operating cash flow
coverage for these items, the greater the
company's ability to meet its obligations.
Pass: >= 0.75
Fail: < 0.75
Inconclusive: No info
available to calculate
the ratio
Pass Fail Inconclusive
2020 result was < 0.75.
2019 was Inconclusive as
there was not enough
data to calculate it.
Fail Fail Inconclusive
2021 and 2020 results
were < 0.75. 2019 was
Inconclusive as there
was not enough data to
calculate it.
Cash Flow to Debt Ratio
This ratio indicates a company's
ability to cover total debt with its
yearly cash flow from operations.
Operating Cash
Flow / Total Debt
Generally, the higher the percentage ratio, the
better the company's ability to carry its total debt.
Pass: >= 25%
Fail: < 25%
Inconclusive: No info
available to calculate
the ratio
Pass Fail Inconclusive
2020 result was < 25%.
2019 was Inconclusive as
there was not enough
data to calculate it.
Fail Fail Inconclusive
2021 and 2020 results
were < 25%. 2019 was
Inconclusive as there
was not enough data to
calculate it.
Fixed Asset Turnover
Ratio
This ratio measures a company's
ability to generate net sales from
fixed asset investments (PPE).
Gross Profit /
Property, Plant &
Equipment
Generally, a higher fixed-asset turnover ratio
shows that the company has been more effective
in using the investment in fixed assets to generate
revenues.
Pass: >= 1.0
Fail: < 1.0
Inconclusive: No info
available to calculate
the ratio
Pass Pass Pass Pass Pass Pass
Asset Turnover Ratio
This ratio measures a company's
efficiency at using its assets in
generating revenue.
Revenues / Total
Assets
Generally, a higher asset turnover ratio shows the
company is more efficient in using assets to
generate revenues.
Pass: >= 50%
Fail: < 50%
Inconclusive: No info
available to calculate
the ratio
Pass Pass Pass Pass Pass Pass
Rating Rating
• Provided 3 years of Audited Financial Statements or Tax Returns (Neither company provided audited financial statements) Pass Pass • Demonstrate adequate resources & CF to purchase vehicles and equipment, and pay personnel necessary to maintain and improve operations Pass Pass • Documentation of Lines of Credit or other Financial Resources to purchase equipment available to purchase equipment Fail Pass • Outstanding Debt and record of servicing that debt Fail Pass • Pending Litigation: If Yes, full documentation of any such litigation must be provided, including amounts paid or for which the company may potentially be liable Pass Pass • Past Litigation from last 10 years: If Yes, full documentation of any such litigation must be provided, including amounts paid or for which the company may potentially be liable Pass Pass • Pending or past bankruptcy filings by the company or any of its principal shareholders: If Yes, full documentation of any such filings must be provided Pass Pass • Insurance and bonding capability Pass Pass
• Documentation of franchise payments, license and permits to the City of Anaheim that were delinquent for any reason Pass Pass • Realism and feasibility of the company's proposed financial/business plan, showing projected income, expenses, and cash flow over the next 5 years Fail Fail 7 3 0 10 9 1 0 10
15 22 2 39 22 15 2 39
22 25 2 49 31 16 2 49
P F I T P F I T
Financial Capacity & Stability Evaluation Criteria per the RFP Operating
Performance: These
ratios show how
efficiently a company
uses its assets
financial obligations.
Cash Flow Coverage:
These ratios are used to
get an idea of the
company's methods of
financing or to measure
its ability to meet
financial obligations.
For Internal Use Only
24/7 Taxi Cab Results Cabco Yellow Results
A 5-year projection was not provided with the
proposal documents.
A 5-year projection was not provided with the
proposal documents.
The majority of financial leverage ratios and all the
cash flow coverage ratios were F; no other
information regarding access to lines of credit was
provided; and no other information was provided
showing a record of debt servicing.
Notes Notes
City of Anaheim - Audit Division
2022 Taxi RFP Financial Review
Disclaimer Statements
Last Update: October 18, 2022
Final Overall Ratings
Ratings Using Standard Financial Ratio Calculations
Financial Capacity & Stability Evaluation Criteria
Use of Tax Returns vs. Audited Financial Statements for Standard Financial Ratio Calculations Calculating standard financial ratio calculations using tax return figures could result in significantly different results from the same calculations using audited financial statements. This is due to the different accounting bases used for each, differences in tax rules vs. Generally Accepted Accounting Principles (GAAP), and different estimates used for the tax return. Audited financial statements are generally considered more reliable for indicators of financial health because they are required to follow GAAP, which properly matches revenues and expenses within a reporting period; requires all financial transactions to be recorded and accounted for; and are subject to rigorous professional examination by an independent third party auditor. Tax rules focus primarily on transactions that impact the company's taxable income and omits certain transactions, thus do not reliably report all liabilities and assets.
The financial ratios used in this analysis are basic standard ratios commonly used by bankers, investors, and business analysts to assess a company's solvency and operating performance, and were rated using basic and commonly used measurements. Each ratio result was rated as Pass, Fail, or Inconclusive, as specified at J.1 for each ratio.
Pass, Fail, or Inconclusive ratings were also provided for the elements identified in the Financial Capacity & Stability Evaluation Criteria of the RFP, as specified at J.1. Evaluation of qualitative criteria as Pass, Fail, or Inconclusive was limited to whether information supports or is contrary to the criteria was included in the documentation that was provided for review, and/or company assertations made in their proposal documents.
Pass: Available information supports the criteria
Fail: Available information is contrary to the criteria Inconclusive: Not enough information was available to provide a rating The overall rating for each company was based on a simple majority of Passes, Fails, or Inconclusives for the Standard Financial Ratio Calculations and the Financial Capacity & Stability Evaluation Criteria.