公司理财3ppt课件.ppt

Chapter3WorkingWithFinancialStatements10September2012 2 KeyConceptsandSkills UnderstandsourcesandusesofcashandtheStatementofCashFlowsKnowhowtostandardizefinancialstatementsforcomparisonpurposesKnowhowtocomputeandinterpretimportantfinancialratiosBeabletocomputeandinterprettheDuPontIdentityUnderstandtheproblemsandpitfallsinfinancialstatementanalysis ChapterOutline CashFlowandFinancialStatements ACloserLookStandardizedFinancialStatementsRatioAnalysisTheDuPontIdentityUsingFinancialStatementInformation 4 CHAPTERWEBSITES SampleBalanceSheet Numbersinmillions 6 SampleIncomeStatement Numbersinmillions exceptEPS DPS 7 SourcesandUses SourcesCashinflow occurswhenwe sell somethingDecreaseinassetaccount SampleB S Accountsreceivable inventory andnetfixedassetsIncreaseinliabilityorequityaccountAccountspayable othercurrentliabilities andcommonstockUsesCashoutflow occurswhenwe buy somethingIncreaseinassetaccountCashandothercurrentassetsDecreaseinliabilityorequityaccountNotespayableandlong termdebt 8 StatementofCashFlows StatementthatsummarizesthesourcesandusesofcashChangesdividedintothreemajorcategoriesOperatingActivity includesnetincomeandchangesinmostcurrentaccountsInvestmentActivity includeschangesinfixedassetsFinancingActivity includeschangesinnotespayable long termdebt andequityaccountsaswellasdividends SampleStatementofCashFlows Numbersinmillions 10 StandardizedFinancialStatements Common SizeBalanceSheetsComputeallaccountsasapercentoftotalassetsCommon SizeIncomeStatementsComputealllineitemsasapercentofsalesStandardizedstatementsmakeiteasiertocomparefinancialinformation particularlyasthecompanygrowsTheyarealsousefulforcomparingcompaniesofdifferentsizes particularlywithinthesameindustry RatioAnalysis RatiosalsoallowforbettercomparisonthroughtimeorbetweencompaniesAswelookateachratio askyourselfwhattheratioistryingtomeasureandwhythatinformationisimportantRatiosareusedbothinternallyandexternally 12 CategoriesofFinancialRatios Short termsolvencyorliquidityratiosLong termsolvencyorfinancialleverageratiosAssetmanagementorturnoverratiosProfitabilityratiosMarketvalueratios 13 ComputingLiquidityRatios CurrentRatio CA CL2 256 1 995 1 13timesQuickRatio CA Inventory CL 2 256 301 1 995 98timesCashRatio Cash CL696 1 995 35timesNWCtoTotalAssets NWC TA 2 256 1 995 5 394 05IntervalMeasure CA averagedailyoperatingcosts2 256 2 006 1 740 365 219 8days 14 ComputingLong termSolvencyRatios TotalDebtRatio TA TE TA 5 394 2 556 5 394 52 61 Debt Equity TD TE 5 394 2 556 2 556 1 11timesEquityMultiplier TA TE 1 D E1 1 11 2 11Long termdebtratio LTD LTD TE 843 843 2 556 24 80 15 ComputingCoverageRatios TimesInterestEarned EBIT Interest1 138 7 162 57timesCashCoverage EBIT Depreciation Interest 1 138 116 7 179 14times 16 ComputingInventoryRatios InventoryTurnover CostofGoodsSold Inventory2 006 301 6 66timesDays SalesinInventory 365 InventoryTurnover365 6 66 55days 17 ComputingReceivablesRatios ReceivablesTurnover Sales AccountsReceivable5 000 956 5 23timesDays SalesinReceivables 365 ReceivablesTurnover365 5 23 70days 18 ComputingTotalAssetTurnover TotalAssetTurnover Sales TotalAssets5 000 5 394 93ItisnotunusualforTAT 1 especiallyifafirmhasalargeamountoffixedassetsNWCTurnover Sales NWC5 000 2 256 1 995 19 16timesFixedAssetTurnover Sales NFA5 000 3 138 1 59times 19 ComputingProfitabilityMeasures ProfitMargin NetIncome Sales689 5 000 13 78 ReturnonAssets ROA NetIncome TotalAssets689 5 394 12 77 ReturnonEquity ROE NetIncome TotalEquity689 2 556 26 96 20 ComputingMarketValueMeasures MarketPrice 87 65pershareSharesoutstanding 190 9millionPERatio Pricepershare Earningspershare87 65 3 61 24 28timesMarket to bookratio marketvaluepershare bookvaluepershare87 65 2 556 190 9 6 55times 21 DerivingtheDuPontIdentity ROE NI TEMultiplyby1 TA TA andthenrearrangeROE NI TE TA TA ROE NI TA TA TE ROA EMMultiplyby1 Sales Sales againandthenrearrangeROE NI TA TA TE Sales Sales ROE NI Sales Sales TA TA TE ROE PM TAT EM UsingtheDuPontIdentity ROE PM TAT EMProfitmarginisameasureofthefirm soperatingefficiency howwellitcontrolscostsTotalassetturnoverisameasureofthefirm sassetuseefficiency howwelldoesitmanageitsassetsEquitymultiplierisameasureofthefirm sfinancialleverage 23 ExpandedDuPontAnalysis AeropostaleData Bal Sheet 1 28 06 Data millions U S Cash 225 27Inventory 91 91OtherCA 22 16FixedAssets 164 62ComputationsTA 503 96TAT 2 39EM 1 77 2006Inc StatementData millions U S Sales 1 204 35COGS 841 87SG A 227 04Interest 3 67 Taxes 55 15ComputationsNI 83 96PM 6 97 ROA 16 66 ROE 29 49 24 AeropostaleExtendedDuPontChart x x 25 WhyEvaluateFinancialStatements InternalusesPerformanceevaluation compensationandcomparisonbetweendivisionsPlanningforthefuture guideinestimatingfuturecashflowsExternalusesCreditorsSuppliersCustomersStockholders Benchmarking Ratiosarenotveryhelpfulbythemselves theyneedtobecomparedtosomethingTime TrendAnalysisUsedtoseehowthefirm sperformanceischangingthroughtimeInternalandexternalusesPeerGroupAnalysisComparetosimilarcompaniesorwithinindustriesSICandNAICScodes 27 RealWorldExample I Ratiosarefiguredusingfinancialdatafromthe2003AnnualReportforHomeDepotComparetheratiostotheindustryratiosinTable3 12inthebookHomeDepot sfiscalyearendsFeb 1Besuretonotehowtheratiosarecomputedinthetablesoyoucancomputecomparablenumbers HomeDepotsales 64 816MM 28 RealWorldExample II LiquidityratiosCurrentratio 1 40 x Industry 1 8xQuickratio 45x Industry 5xLong termsolvencyratioDebt Equityratio Debt Worth 54x Industry 2 2x CoverageratioTimesInterestEarned 2282x Industry 3 2x 29 RealWorldExample III Assetmanagementratios Inventoryturnover 4 9x Industry 3 5xReceivablesturnover 59 1x 6days Industry 24 5x 15days Totalassetturnover 1 9x Industry 2 3xProfitabilityratiosProfitmarginbeforetaxes 10 6 Industry 2 7 ROA profitbeforetaxes totalassets 19 9 Industry 4 9 ROE profitbeforetaxes tangiblenetworth 34 6 Industry 23 7 30 PotentialProblems Thereisnounderlyingtheory sothereisnowaytoknowwhichratiosaremostrelevantBenchmarkingisdifficultfordiversifiedfirmsGlobalizationandinternationalcompetitionmakescomparisonmoredifficultbecauseofdifferencesinaccountingregulationsVaryingaccountingprocedures i e FIFOvs LIFODifferentfiscalyearsExtraordinaryevents WorktheWebExample TheInternetmakesratioa