《财务报表分析英》PPT课件.ppt

Chapter6 FinancialStatementAnalysis PearsonEducationLimited2004FundamentalsofFinancialManagement 12 eCreatedby GregoryA Kuhlemeyer Ph D CarrollCollege Waukesha WI AfterstudyingChapter6 youshouldbeableto Understandthepurposeofbasicfinancialstatementsandtheircontents Explainwhyfinancialstatementanalysisisimportanttothefirmandtooutsidesuppliersofcapital Define calculate andcategorize accordingtoliquidity financialleverage coverage activity andprofitability themajorfinancialratiosandunderstandwhattheycantellusaboutthefirm Define calculate anddiscussafirm soperatingcycleandcashcycle Useratiostoanalyzeafirm shealthandthenrecommendreasonablealternativecoursesofactiontoimprovethehealthofthefirm Analyzeafirm sreturnoninvestment i e earningpower andreturnonequityusingaDuPontapproach Understandthelimitationsoffinancialratioanalysis Usetrendanalysis common sizeanalysis andindexanalysistogainadditionalinsightsintoafirm sperformance FinancialStatementAnalysis FinancialStatementsAPossibleFrameworkforAnalysisBalanceSheetRatiosIncomeStatementandIncomeStatement BalanceSheetRatiosTrendAnalysisCommon SizeandIndexAnalysis ExamplesofExternalUsesofStatementAnalysis TradeCreditors Focusontheliquidityofthefirm Bondholders Focusonthelong termcashflowofthefirm Shareholders Focusontheprofitabilityandlong termhealthofthefirm ExamplesofInternalUsesofStatementAnalysis Plan Focusonassessingthecurrentfinancialpositionandevaluatingpotentialfirmopportunities Control Focusonreturnoninvestmentforvariousassetsandassetefficiency Understand Focusonunderstandinghowsuppliersoffundsanalyzethefirm PrimaryTypesofFinancialStatements IncomeStatementAsummaryofafirm srevenuesandexpensesoveraspecifiedperiod endingwithnetincomeorlossfortheperiod BalanceSheetAsummaryofafirm sfinancialpositiononagivendatethatshowstotalassets totalliabilities owners equity BasketWonders BalanceSheet AssetSide a Howthefirmstandsonaspecificdate b WhatBWowned c Amountsowedbycustomers d Futureexpenseitemsalreadypaid e Cash likelyconvertibletocashwithin1year f Originalamountpaid g Acc deductionsforwearandtear CashandC E 90Acct Rec c394Inventories696PrepaidExpd5AccumTaxPrepay10CurrentAssetse 1 195FixedAssets Cost f1030Less Acc Depr g 329 NetFix Assets 701Investment LT50OtherAssets LT223TotalAssetsb 2 169 BasketWondersBalanceSheet thousands Dec 31 2007a BasketWonders BalanceSheet LiabilitySide a Note Assets Liabilities Equity b WhatBWowedandownershipposition c Owedtosuppliersforgoodsandservices d Unpaidwages salaries etc e Debtspayable1year g Originalinvestment h Earningsreinvested NotesPayable 290Acct Payablec94AccruedTaxesd16OtherAccruedLiab d100CurrentLiab e 500Long TermDebtf530Shareholders EquityCom Stock 1par g200AddPdinCapitalg729RetainedEarningsh210TotalEquity 1 139TotalLiab Equitya b 2 169 BasketWondersBalanceSheet thousands Dec 31 2007 BasketWonders IncomeStatement a Measuresprofitabilityoveratimeperiod b Received orreceivable fromcustomers c Salescomm adv officers salaries etc d Operatingincome e Costofborrowedfunds f Taxableincome g Amountearnedforshareholders NetSales 2 211CostofGoodsSoldb1 599GrossProfit 612SG AExpensesc402EBITd 210InterestExpensee59EBTf 151IncomeTaxes60EATg 91CashDividends38IncreaseinRE 53 BasketWondersStatementofEarnings inthousands forYearEndingDecember31 2007a FrameworkforFinancialAnalysis AnalyticalToolsUsedSourcesandUsesStatementStatementofCashFlowsCashBudgets 1 Analysisofthefundsneedsofthefirm Trend SeasonalComponentHowmuchfundingwillberequiredinthefuture Isthereaseasonalcomponent FrameworkforFinancialAnalysis HealthofaFirmFinancialRatios1 Individually2 Overtime3 Incombination4 Incomparison 1 Analysisofthefundsneedsofthefirm 2 Analysisofthefinancialconditionandprofitabilityofthefirm FrameworkforFinancialAnalysis Examples VolatilityinsalesVolatilityincostsProximitytobreak evenpoint 1 Analysisofthefundsneedsofthefirm 2 Analysisofthefinancialconditionandprofitabilityofthefirm 3 Analysisofthebusinessriskofthefirm Businessriskrelatestotheriskinherentintheoperationsofthefirm FrameworkforFinancialAnalysis AFinancialManagermustconsiderallthreejointlywhendeterminingthefinancingneedsofthefirm Determiningthefinancingneedsofthefirm 1 Analysisofthefundsneedsofthefirm 2 Analysisofthefinancialconditionandprofitabilityofthefirm 3 Analysisofthebusinessriskofthefirm FrameworkforFinancialAnalysis Negotiationswithsuppliersofcapital Determiningthefinancingneedsofthefirm 1 Analysisofthefundsneedsofthefirm 2 Analysisofthefinancialconditionandprofitabilityofthefirm 3 Analysisofthebusinessriskofthefirm UseofFinancialRatios TypesofComparisonsInternalComparisonsExternalComparisons AFinancialRatioisanindexthatrelatestwoaccountingnumbersandisobtainedbydividingonenumberbytheother ExternalComparisonsandSourcesofIndustryRatios Examples RiskManagementAssociationDun BradstreetAlmanacofBusinessandIndustrialFinancialRatios Thisinvolvescomparingtheratiosofonefirmwiththoseofsimilarfirmsorwithindustryaverages Similarityisimportantasoneshouldcompare applestoapples LiquidityRatios CurrentCurrentAssetsCurrentLiabilitiesForBasketWondersDecember31 2007 Showsafirm sabilitytocoveritscurrentliabilitieswithitscurrentassets BalanceSheetRatios LiquidityRatios 1 195 500 2 39 LiquidityRatioComparisons BWIndustry2 392 152 262 091 912 01 Year200720062005 CurrentRatio Ratioisstrongerthantheindustryaverage LiquidityRatios Acid Test Quick CurrentAssets InvCurrentLiabilitiesForBasketWondersDecember31 2007 Showsafirm sabilitytomeetcurrentliabilitieswithitsmostliquidassets BalanceSheetRatios LiquidityRatios 1 195 696 500 1 00 LiquidityRatioComparisons BWIndustry1 001 251 041 231 111 25 Year200720062005 Acid TestRatio Ratioisweakerthantheindustryaverage SummaryoftheLiquidityRatioComparisons Strongcurrentratioandweakacid testratioindicatesapotentialproblemintheinventoriesaccount Notethatthisindustryhasarelativelyhighlevelofinventories RatioBWIndustryCurrent2 392 15Acid Test1 001 25 CurrentRatio TrendAnalysisComparison Acid TestRatio TrendAnalysisComparison SummaryoftheLiquidityTrendAnalyses Thecurrentratiofortheindustryhasbeenrisingslowlyatthesametimetheacid testratiohasbeenrelativelystable ThisindicatesthatinventoriesareasignificantproblemforBW ThecurrentratioforBWhasbeenrisingatthesametimetheacid testratiohasbeendeclining FinancialLeverageRatios Debt to EquityTotalDebtShareholders EquityForBasketWondersDecember31 2007 Showstheextenttowhichthefirmisfinancedbydebt BalanceSheetRatios FinancialLeverageRatios 1 030 1 139 90 FinancialLeverageRatioComparisons BWIndustry 90 90 88 90 81 89 Year200720062005 Debt to EquityRatio BWhasaveragedebtutilizationrelativetotheindustryaverage FinancialLeverageRatios Debt to Total AssetsTotalDebtTotalAssetsForBasketWondersDecember31 2007 Showsthepercentageofthefirm sassetsthataresupportedbydebtfinancing BalanceSheetRatios FinancialLeverageRatios 1 030 2 169 47 FinancialLeverageRatioComparisons BWIndustry 47 47 47 47 45 47 Year200720062005 Debt to Total AssetRatio BWhasaveragedebtutilizationrelativetotheindustryaverage FinancialLeverageRatios TotalCapitalizationLong termDebtTotalCapitalizationForBasketWondersDecember31 2007 Showstherelativeimportanceoflong termdebttothelong termfinancingofthefirm BalanceSheetRatios FinancialLeverageRatios 530 1 669 32 i e LT Debt Equity FinancialLeverageRatioComparisons BWIndustry 32 30 32 31 37 32 Year200720062005 TotalCapitalizationRatio BWhasaveragelong termdebtutilizationrelativetotheindustryaverage CoverageRatios InterestCoverageEBITInterestChargesForBasketWondersDecember31 2007 Indicatesafirm sabilitytocoverinterestcharges IncomeStatementRatios CoverageRatios 210 59 3 56 CoverageRatioComparisons BWIndustry3 565 194 355 0210 304 66 Year200720062005 InterestCoverageRatio BWhasbelowaverageinterestcoveragerelativetotheindustryaverage CoverageRatio TrendAnalysisComparison SummaryoftheCoverageTrendAnalysis Thisindicatesthatlowearnings EBIT maybeapotentialproblemforBW Note weknowthatdebtlevelsareinlinewiththeindustryaverages TheinterestcoverageratioforBWhasbeenfallingsince2005 Ithasbeenbelowindustryaveragesforthepasttwoyears ActivityRatios ReceivableTurnoverAnnualNetCreditSalesReceivablesForBasketWondersDecember31 2007 Indicatesqualityofreceivablesandhowsuccessfulthefirmisinitscollections IncomeStatement BalanceSheetRatios ActivityRatios 2 211 394 5 61 Assumeallsalesarecreditsales ActivityRatios AvgCollectionPeriodDaysintheYearReceivableTurnoverForBasketWondersDecember31 2007 Averagenumberofdaysthatreceivablesareoutstanding orRTindays IncomeStatement BalanceSheetRatios ActivityRatios 3655 61 65days ActivityRatioComparisons BWIndustry65 065 771 166 383 669 2 Year200720062005 AverageCollectionPeriod BWhasimprovedtheaveragecollectionperiodtothatoftheindustryaverage ActivityRatios PayableTurnover PT AnnualCreditPurchasesAccountsPayableForBasketWondersDecember31 2007 Indicatesthepromptnessofpaymenttosuppliersbythefirm IncomeStatement BalanceSheetRatios ActivityRatios 1551 94 16 5 Assumeannualcreditpurchases 1 551 ActivityRatios PTinDaysDaysintheYearPayableTurnoverForBasketWondersDecember31 2007 Averagenumberofdaysthatpayablesareoutstanding IncomeStatement BalanceSheetRatios ActivityRatios 36516 5 22 1days ActivityRatioComparisons BWIndustry22 146 725 451 143 548 5 Year200720062005 PayableTurnoverinDays BWhasimprovedthePTinDays Isthisgood ActivityRatios InventoryTurnoverCostofGoodsSoldInventoryForBasketWondersDecember31 2007 Indicatestheeffectivenessoftheinventorymanagementpracticesofthefirm IncomeStatement BalanceSheetRatios ActivityRatios 1 599 696 2 30 ActivityRatioComparisons BWIndustry2 303 452 443 762 643 69 Year200720062005 InventoryTurnoverRatio BWhasaverypoorinventoryturnoverratio InventoryTurnoverRatio TrendAnalysisComparison ActivityRatios TotalAssetTurnoverNetSalesTotalAssetsForBasketWondersDecember31 2007 Indicatestheoveralleffectivenessofthefirminutilizingitsassetstogeneratesales IncomeStatement BalanceSheetRatios ActivityRatios 2 211 2 169 1 02 ActivityRatioComparisons BWIndustry1 021 171 031 141 011 13 Year200720062005 TotalAssetTurnoverRatio BWhasaweaktotalassetturnoverratio Whyisthisratioconsideredweak ProfitabilityRatios GrossProfitMarginGrossProfitNetSalesForBasketWondersDecember31 2007 Indicatestheefficiencyofoperationsandfirmpricingpolicies IncomeStatement BalanceSheetRatios ProfitabilityRatios 612 2 211 277 ProfitabilityRatioComparisons BWIndustry27 7 31 1 28 730 831 327 6 Year200720062005 GrossProfitMargin BWhasaweakGrossProfitMargin GrossProfitMargin TrendAnalysisComparison ProfitabilityRatios NetProfitMarginNetProfitafterTaxesNetSalesForBasketWondersDecember31 2007 Indicatesthefirm sprofitabilityaftertakingaccountofallexpensesandincometaxes IncomeStatement BalanceSheetRatios ProfitabilityRatios 91 2 211 041 ProfitabilityRatioComparisons BWIndustry4 1 8 2 4 98 19 07 6 Year200720062005 NetProfitMargin BWhasapoorNetProfitMargin NetProfitMargin TrendAnalysisComparison ProfitabilityRatios ReturnonInvestmentNetProfitafterTaxesTotalAssetsForBasketWondersDecember31 2007 Indicatestheprofitabilityontheassetsofthefirm afterallexpensesandtaxes IncomeStatement BalanceSheetRatios ProfitabilityRatios 91 2 160 042 ProfitabilityRatioComparisons BWIndustry4 2 9 8 5 09 19 110 8 Year200720062005 ReturnonInvestment BWhasapoorReturnonInvestment ReturnonInvestment TrendAnalysisComparison ProfitabilityRatios ReturnonEquityNetProfitafterTaxesShareholders EquityForBasketWondersDecember31 2007 Indicatestheprofitabilitytotheshareholdersofthefirm afterallexpensesandtaxes IncomeStatement BalanceSheetRatios ProfitabilityRatios 91 1 139 08 ProfitabilityRatioComparisons BWIndustry8 0 17 9 9 417 216 620 4 Year200720062005 ReturnonEquity BWhasapoorReturnonEquity ReturnonEquity TrendAnalysisComparison ReturnonInvestmentandtheDuPontApproach ROI2007 041x1 02 042or4 2 ROIIndustry 082x1 17 098or9 8 ROI NetprofitmarginXTotalassetturnover Earni