Education Management Corporation Financial Ratios — EDMCQ

Profitability (USD)

	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Return on Common Equity (%)	151.91	71.39	55.48	44.81	40.02	36.03	- -	- -	144.16	79.84	63.03	49.2	- -	- -	- -
Return on Assets (%)	10.74	10.97	10.85	10.63	11.04	11.39	3.29	0.82	1.63	2.49	3.83	5.06	-38.78	-9.29	-30.88
Return on Capital (%)	34.35	29.11	36.05	35.37	27.36	28.58	7.54	6.38	8.25	9.93	12.64	15.12	- -	- -	- -
Return on Invested Capital (%)	14.76	15.54	14.7	13.56	13.75	15.03	4.39	3.79	4.91	6.02	8.19	8.92	- -	- -	- -
Gross Margin (%)	34.52	34.63	35.07	34.76	35.98	37.17	38.94	46.48	46.49	46.92	49.49	48.98	45.59	42.08	39.56
EBITDA Margin (%)	19.33	20.43	20.58	21.51	22.07	22.88	18.88	23.36	21.6	21.43	21.61	22.43	17.96	14.5	10.18
Operating Margin (%)	12.48	13.4	13.78	14.49	15.59	16.54	12.88	16.72	15.65	15.85	16.7	17.36	12.21	7.91	3.47
Incremental Operating Margin (%)	14.31	17.87	14.85	17.04	18.9	21.41	-11.89	39.93	11.11	16.88	20.13	21.75	129.63	53.15	52.54
Pretax Margin (%)	12.24	12.79	13.47	14.29	15.3	16.56	12.13	4.37	6.36	8.23	9.97	12.79	-52.34	-9.3	-27.16
Profit Margin (%)	7.33	7.82	8.45	8.79	9.03	9.96	6.9	2.38	3.92	5.19	6.72	7.95	-51.92	-9.78	-29.21
Net Income to Common Margin (%)	7.33	7.82	8.45	8.79	9.03	9.96	6.9	2.38	3.92	5.19	6.72	7.95	-51.92	-9.78	-29.21
Effective Tax Rate (%)	40.11	38.86	37.23	38.46	40.99	39.83	43.12	45.67	38.43	36.93	32.64	37.84	- -	- -	- -
Dvd Payout Ratio (%)	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
Sustainable Growth Rate (%)	151.91	71.39	55.48	44.81	40.02	36.03	- -	- -	144.16	79.84	63.03	49.2	- -	- -	- -

Credit (USD)

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	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Total Debt	64	54	29	38	140	8	1,950	1,940	1,901	1,889	1,539	1,558	1,577	1,360	1,503
ST Debt	- -	- -	25	35	136	4	13	38	13	13	12	91	123	87	232
LT Debt	64	54	4	3	3	4	1,937	1,902	1,889	1,876	1,527	1,467	1,453	1,273	1,272
Total Debt/EBITDA	1.08	0.71	0.28	0.28	0.74	0.04	8.83	6.09	5.23	4.38	2.84	2.41	3.18	3.75	6.49
Net Debt/EBITDA	0.43	0.09	-0.54	-0.3	0.12	-0.7	7.63	5.18	4.46	3.54	2.15	1.78	2.8	3.39	5.33
Total Debt/EBIT	1.68	1.08	0.41	0.42	1.05	0.05	12.94	8.51	7.22	5.92	3.67	3.11	4.68	6.88	19.04
Net Debt/EBIT	0.66	0.13	-0.81	-0.45	0.17	-0.97	11.2	7.24	6.16	4.79	2.78	2.3	4.11	6.22	15.61
EBITDA to Interest Expense	- -	- -	- -	- -	- -	1,060.21	25.23	1.89	2.33	2.81	4.46	5.37	4.49	2.91	- -
EBITDA-CapEx/Interest Expense	- -	- -	- -	- -	- -	736.55	25.23	1.89	2.33	1.83	3.02	4.22	3.65	2.24	- -
EBIT to Interest Expense	- -	- -	- -	- -	- -	766.31	17.21	1.35	1.69	2.08	3.45	4.15	3.06	1.59	- -
Interest Expense	- -	- -	- -	- -	- -	- -	9	168	156	153	121	121	110	125	- -
Common Equity/Total Assets	10.84	19.16	19.78	27.13	27.91	34.8	-0.49	0.33	1.92	4.27	7.8	12.76	-32.92	-45.26	-93.8
Long-Term Debt/Equity (%)	56.9	33.53	1.01	0.8	0.64	0.64	151.02	140.8	135.66	126.28	73.51	69.72	292.71	357.78	- -
Long-Term Debt/Capital (%)	71.11	49.32	2.78	1.78	0.91	1.25	100.34	97.38	95.38	90.56	80.76	68.57	226.28	483.18	-494.22
Long-Term Debt/Total Assets (%)	26.7	18.65	0.71	0.6	0.41	0.45	49.1	47.68	46.11	43.78	33.84	32.2	51.19	52.54	67.74
Total Debt/Equity (%)	56.91	33.55	8.25	9	26.4	1.26	152.02	143.62	136.58	127.13	74.1	74.04	317.55	382.24	-527.73
Total Debt/Capital (%)	71.12	49.35	22.68	20.03	37.65	2.47	101.01	99.34	96.03	91.17	81.4	72.83	245.49	516.23	-584.3
Total Debt/Total Assets (%)	26.71	18.66	5.8	6.8	16.86	0.88	49.42	48.64	46.43	44.07	34.11	34.2	55.54	56.13	80.09
Net Debt to Equity	22.51	4.12	-16.13	-9.68	4.32	-24.56	131.49	122.1	116.65	102.67	56.11	54.88	279.09	345.52	-432.75
Net Debt/Capital (%)	49.35	10.68	-134.57	-36.85	8.99	-96.69	101.17	99.22	95.39	89.29	76.81	66.52	307.07	925.86	-233.54
EBITDA	59	76	103	138	188	233	221	319	364	431	542	648	496	362	231
EBITDA-CapEx	9	28	58	57	108	162	221	319	364	280	366	510	402	279	158
Operating Income (Loss)	38	50	69	93	133	169	151	228	264	319	419	501	337	198	79

Liquidity (USD)

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	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Cash Ratio	0.62	0.64	0.6	0.61	0.41	0.74	0.6	0.67	0.6	0.7	0.76	0.75	0.36	0.27	0.43
Current Ratio	1.06	1.13	1	1.16	0.73	1.2	0.92	0.99	1	1.14	1.37	1.43	1.58	1.59	1.38
Quick Ratio	0.86	0.94	0.82	0.92	0.6	0.99	0.74	0.86	0.82	0.96	1.13	1.07	0.78	0.76	0.85
CFO/Avg Current Liab	0.88	1.04	0.87	0.58	0.79	0.75	0.83	0.41	0.34	0.6	0.6	0.77	-0.02	0.38	0.13
Common Equity/Total Assets	10.84	19.16	19.78	27.13	27.91	34.8	-0.49	0.33	1.92	4.27	7.8	12.76	-32.92	-45.26	-93.8
Long-Term Debt/Equity (%)	56.9	33.53	1.01	0.8	0.64	0.64	151.02	140.8	135.66	126.28	73.51	69.72	292.71	357.78	- -
Long-Term Debt/Capital (%)	71.11	49.32	2.78	1.78	0.91	1.25	100.34	97.38	95.38	90.56	80.76	68.57	226.28	483.18	-494.22
Long-Term Debt/Total Assets (%)	26.7	18.65	0.71	0.6	0.41	0.45	49.1	47.68	46.11	43.78	33.84	32.2	51.19	52.54	67.74
Total Debt/Equity (%)	56.91	33.55	8.25	9	26.4	1.26	152.02	143.62	136.58	127.13	74.1	74.04	317.55	382.24	-527.73
Total Debt/Capital (%)	71.12	49.35	22.68	20.03	37.65	2.47	101.01	99.34	96.03	91.17	81.4	72.83	245.49	516.23	-584.3
Total Debt/Total Assets (%)	26.71	18.66	5.8	6.8	16.86	0.88	49.42	48.64	46.43	44.07	34.11	34.2	55.54	56.13	80.09
CFO/Total Liabilities	37.32	55.95	63.51	56.18	54.56	66.37	10.49	6.82	5.65	10.48	12.61	16.31	-0.46	9.25	3.27
CFO/CapEx	0.95	1.5	2.04	0.96	2.02	2.7	- -	- -	- -	1.95	1.75	2.89	-0.12	2.3	0.96
Altman's Z-Score	2.25	2.55	2.52	3.02	3.07	3.36	1.86	2.33	2.59	2.76	3.66	4.48	2.12	1.66	0.26

Working Capital (USD)

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	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Accounts Receivable Turnover	- -	- -	- -	- -	- -	41.2	23.43	22.66	21.52	19.26	17.29	17.73	15.29	12.2	10.91
Days Sales Outstanding	- -	- -	- -	- -	- -	8.86	15.58	16.11	16.96	18.95	21.11	20.58	23.87	29.93	33.45
Inventory Turnover	77.63	72.62	87.14	100.58	116.53	120.84	121.45	111.11	116.6	119.67	120.62	138.67	167.15	203.03	467.8
Days Inventory Outstanding	4.7	5.03	4.19	3.63	3.13	3.02	3.01	3.29	3.13	3.05	3.03	2.63	2.18	1.8	0.78
Accounts Payable Turnover	12.64	15.81	22.96	24.7	23.58	21.3	19.97	15.89	16.74	19.26	20.35	22.69	26.49	33.06	38.47
Accounts Payable Turnover Days	28.88	23.08	15.9	14.78	15.48	17.14	18.28	22.96	21.8	18.95	17.93	16.09	13.78	11.04	9.49
Cash Conversion Cycle	-24.17	-18.05	-11.71	-11.15	-12.35	-5.26	0.3	-3.57	-1.71	3.05	6.2	7.12	12.28	20.69	24.74
Inventory to Cash Days	-4.7	-5.03	-4.19	-3.63	-3.13	5.84	12.57	12.82	13.83	15.9	18.08	17.95	21.69	28.13	32.67
Inventories	3	4	4	4	5	6	6	7	8	9	12	10	8	6	- -
Raw Materials	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
Work In Process	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
Finished Goods	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
Other Inventory	3	4	4	4	5	6	6	7	8	9	12	10	8	6	- -

Enterprise Value (USD)

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	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Market Capitalization	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	2,088	3,108	865	700	- -
- Cash & Cash Equivalents	39	47	84	80	117	172	263	291	277	363	374	403	191	131	271
+ Preferred Equity and Hybrid Capital	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
+ Minority/Non Controlling Interest	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
+ Total Debt	64	54	29	38	140	8	1,950	1,940	1,901	1,889	1,539	1,558	1,577	1,360	1,503
Enterprise Value	25	7	-56	-41	23	-164	1,687	1,649	1,624	1,525	3,240	4,262	2,251	1,930	1,233
Total Capital	90	109	126	192	371	341	1,931	1,953	1,980	2,072	1,890	2,139	642	263	-257
Total Debt/Capital (%)	71.12	49.35	22.68	20.03	37.65	2.47	101.01	99.34	96.03	91.17	81.4	72.83	245.49	516.23	-584.3
Total Debt / EV	2.53	8.15	-0.51	-0.93	6.11	-0.05	1.16	1.18	1.17	1.24	0.47	0.37	0.7	0.7	1.22
EV/Sales	0.08	0.02	- -	- -	0.03	- -	1.44	1.21	0.96	0.76	1.29	1.48	0.82	0.77	0.54
EV/EBITDA	0.43	0.09	- -	- -	0.12	- -	7.63	5.18	4.46	3.54	5.98	6.58	4.54	5.33	5.33
EV/EBIT	0.66	0.13	- -	- -	0.17	- -	11.2	7.24	6.16	4.79	7.74	8.5	6.68	9.76	15.61
EV/Cash Flow to Firm	0.53	0.09	- -	- -	0.14	- -	5.94	6.08	6.52	3.91	8.33	8.98	22.83	5.98	17.45
EV/Free Cash Flow to Firm	0.26	0.06	- -	- -	0.09	- -	5.94	6.08	6.52	2.82	5.74	6.95	11.71	4.76	8.54
Diluted Market Cap	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	2,099	3,311	880	700	- -
Diluted Enterprise Value	25	7	-56	-41	23	-164	1,687	1,649	1,624	1,525	3,265	4,466	2,266	1,930	1,233
EV per Share	0.88	0.22	- -	- -	0.31	- -	23.67	62.37	13.56	12.74	23.67	32.83	18.08	15.49	- -
TTM Sales	307	371	501	640	853	1,019	1,170	1,364	1,684	2,011	2,509	2,888	2,761	2,499	2,273
TTM EBITDA	59	76	103	138	188	233	221	319	364	431	542	648	496	362	231
TTM Operating Income	38	50	69	93	133	169	151	228	264	319	419	501	337	198	79
TTM Cash Flow to Firm	48	71	93	78	163	193	284	271	249	390	389	475	99	322	71
TTM Free Cash Flow to Firm	98	119	138	159	244	264	284	271	249	541	565	613	192	406	144

Multiples (USD)

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	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Price/Free Cash Flow	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	4.35	6.16	10.64	2.55	- -
EV/EBIT	0.66	0.13	- -	- -	0.17	- -	11.2	7.24	6.16	4.79	7.74	8.5	6.68	9.76	15.61
Enterprise Value	25	7	-56	-41	23	-164	1,687	1,649	1,624	1,525	3,240	4,262	2,251	1,930	1,233
Low Price	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	15.05	7.76	5.55	2.84	1.6
EV/Sales	0.08	0.02	- -	- -	0.03	- -	1.44	1.21	0.96	0.76	1.29	1.48	0.82	0.77	0.54
EV/EBITDA	0.43	0.09	- -	- -	0.12	- -	7.63	5.18	4.46	3.54	5.98	6.58	4.54	5.33	5.33
Price/Earnings	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	12.39	13.54	- -	- -	- -
Price/Earnings Average	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	17.38	9.33	-1.53	-2.24	- -
Price/Earnings High	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	21.92	15.61	-2.6	-4.08	- -
Price/Earnings Low	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	12.23	4.39	-0.48	-1.45	- -
Price/Book Value	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	5.94	5.35	-0.93	-0.64	- -
Price/Book Value Average	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	8.33	3.68	-2.34	-0.5	- -
Price/Book Value High	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	10.5	6.16	-3.98	-0.91	- -
Price/Book Value Low	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	5.86	1.73	-0.74	-0.32	- -
Price/Tangible Book Value	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	-2.15	-3.31	-1.09	-0.97	- -
Price/Tangible Book Value Average	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	-3.02	-2.28	-2.74	-0.76	- -
Price/Tangible Book Value High	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	-3.81	-3.82	-4.67	-1.38	- -
Price/Tangible Book Value Low	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	-2.13	-1.07	-0.87	-0.49	- -
Price/Sales	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	0.83	1.08	0.31	0.28	- -
Price/Sales Average	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	1.17	0.74	0.79	0.22	- -
Price/Sales High	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	1.47	1.24	1.35	0.4	- -
Price/Sales Low	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	0.82	0.35	0.25	0.14	- -
Price/Cash Flow	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	6.8	7.77	-79.73	3.66	- -
Price/Cash Flow Average	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	9.54	5.36	-201.6	2.86	- -
Price/Cash Flow High	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	12.03	8.96	-343.03	5.21	- -
Price/Cash Flow Low	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	6.71	2.52	-63.67	1.85	- -
Price/Free Cash Flow Average	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	6.1	4.24	26.91	1.99	- -
Price/Free Cash Flow High	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	7.69	7.1	45.8	3.63	- -
Price/Free Cash Flow Low	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	4.29	2	8.5	1.29	- -
EV/Sales Average	0.08	0.02	- -	- -	0.03	- -	1.44	1.21	0.96	0.76	1.63	1.14	1.29	0.71	0.54
EV/Sales High	0.08	0.02	- -	- -	0.03	- -	1.44	1.21	0.96	0.76	1.94	1.64	1.85	0.89	0.54
EV/Sales Low	0.08	0.02	- -	- -	0.03	- -	1.44	1.21	0.96	0.76	1.29	0.75	0.75	0.63	0.54
EV/EBITDA Average	0.43	0.09	-0.54	-0.3	0.12	-0.7	7.63	5.18	4.46	3.54	7.55	5.09	7.21	4.9	5.33
EV/EBITDA High	0.43	0.09	-0.54	-0.3	0.12	-0.7	7.63	5.18	4.46	3.54	8.96	7.31	10.3	6.14	5.33
EV/EBITDA Low	0.43	0.09	-0.54	-0.3	0.12	-0.7	7.63	5.18	4.46	3.54	5.95	3.34	4.19	4.37	5.33
EV/EBIT Average	0.66	0.13	-0.81	-0.45	0.17	-0.97	11.2	7.24	6.16	4.79	9.78	6.57	10.6	8.99	15.61
EV/EBIT High	0.66	0.13	-0.81	-0.45	0.17	-0.97	11.2	7.24	6.16	4.79	11.6	9.45	15.15	11.26	15.61
EV/EBIT Low	0.66	0.13	-0.81	-0.45	0.17	-0.97	11.2	7.24	6.16	4.79	7.7	4.31	6.16	8.01	15.61
Last Price	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	15.25	23.94	6.95	5.62	1.69
High Price	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	26.98	27.59	29.9	8	16.94
Enterprise Value Average	25	7	-56	-41	23	-164	1,687	1,649	1,624	1,525	4,094	3,296	3,573	1,777	1,233
Enterprise Value High	25	7	-56	-41	23	-164	1,687	1,649	1,624	1,525	4,859	4,736	5,108	2,226	1,233
Enterprise Value Low	25	7	-56	-41	23	-164	1,687	1,649	1,624	1,525	3,226	2,162	2,077	1,583	1,233

	2000 Y	2001 Y	2002 Y	2003 Y	2004 Y	2005 Y	2006 Y	2007 Y	2008 Y	2009 Y	2010 Y	2011 Y	2012 Y	2013 Y	2014 Y
Shares Outstanding	- -	- -	- -	- -	- -	- -	- -	- -	- -	140	143	130	124	125	126
Diluted Weighted Avg Shares	30	31	34	37	75	75	73	26	120	120	138	138	127	125	- -
Basic Weighted Avg Shares	29	30	33	35	73	74	71	26	120	120	137	130	124	125	- -
Revenue per Share	10.61	12.46	15.16	18.04	11.72	13.77	16.42	51.57	14.06	16.79	18.32	22.24	22.18	20.06	- -
EBITDA per Share	2.05	2.55	3.12	3.88	2.59	3.15	3.1	12.05	3.04	3.6	3.96	4.99	3.98	2.91	- -
Operating Income per Share	1.32	1.67	2.09	2.61	1.83	2.28	2.11	8.62	2.2	2.66	3.06	3.86	2.71	1.59	- -
Basic EPS, GAAP	0.78	0.97	1.28	1.59	1.06	1.37	1.13	1.23	0.55	0.87	1.23	1.77	-11.52	-1.96	- -
Basic EPS from Cont Ops	0.78	0.97	1.28	1.59	1.06	1.37	1.13	1.23	0.55	0.87	1.23	1.77	-11.52	-1.96	- -
Diluted EPS, GAAP	0.75	0.93	1.23	1.54	1.03	1.35	1.11	1.23	0.55	0.87	1.22	1.66	-11.32	-1.96	- -
Diluted EPS from Cont Ops	0.75	0.93	1.23	1.54	1.03	1.35	1.11	1.23	0.55	0.87	1.22	1.66	-11.32	-1.96	- -
Dividend per Share	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -	- -
Cash Flow per Share	1.65	2.4	2.81	2.2	2.24	2.6	3.92	6.8	1.28	2.45	2.24	3.08	-0.09	1.54	- -
Free Cash Flow per Basic Share	-0.08	0.8	1.43	-0.08	1.13	1.64	3.92	6.8	1.28	1.19	0.96	2.02	-0.84	0.87	- -
Cash & Equivalents per Share	1.34	1.58	2.56	2.25	1.6	2.32	3.7	10.99	2.32	3.03	2.82	3.11	1.53	1.05	- -
Book Value per Share	0.9	1.85	2.95	4.33	3.18	4.5	-0.27	0.49	0.66	1.53	2.57	4.48	-7.51	-8.8	- -
Tangible Book Value per Share	2.86	3.93	5.95	7.16	2.7	4.51	-25.3	-65.23	-14	-13.07	-7.08	-7.22	-6.4	-5.79	- -

Education Management Corporation

Profitability (USD)

Credit (USD)

Liquidity (USD)

Working Capital (USD)

Enterprise Value (USD)

Multiples (USD)

Per Share Data Items (USD)