公司、企业财务管理基础综述(英文版)

Chapter6,FinancialStatementAnalysis,AfterStudyingChapter6,youshouldbeableto:,Understandthepurposeofbasicfinancialstatementsandtheircontents.Understandwhatismeantby“convergence”inaccountingstandards.Explainwhyfinancialstatementanalysisisimportanttothefirmandtooutsidesuppliersofcapital.Define,calculate,andcategorize(accordingtoliquidity,financialleverage,coverage,activity,andprofitability)themajorfinancialratiosandunderstandwhattheycantellusaboutthefirm.Define,calculate,anddiscussafirmsoperatingcycleandcashcycle.Useratiostoanalyzeafirmshealthandthenrecommendreasonablealternativecoursesofactiontoimprovethehealthofthefirm.Analyzeafirmsreturnoninvestment(i.e.,“earningpower”)andreturnonequityusingaDuPontapproach.Understandthelimitationsoffinancialratioanalysis.Usetrendanalysis,common-sizeanalysis,andindexanalysistogainadditionalinsightsintoafirmsperformance.,FinancialStatementsAPossibleFrameworkforAnalysisBalanceSheetRatiosIncomeStatementandIncome/BalanceSheetRatiosTrendAnalysisCommon-SizeandIndexAnalysis,FinancialStatementAnalysis,TradeCreditorsFocusontheliquidityofthefirm.BondholdersFocusonthelong-termcashflowofthefirm.ShareholdersFocusontheprofitabilityandlong-termhealthofthefirm.,ExamplesofExternalUsesofStatementAnalysis,PlanFocusonassessingthecurrentfinancialpositionandevaluatingpotentialfirmopportunities.ControlFocusonreturnoninvestmentforvariousassetsandassetefficiency.UnderstandFocusonunderstandinghowsuppliersoffundsanalyzethefirm.,ExamplesofInternalUsesofStatementAnalysis,ConvergenceofAccountingStandards:AimstonarroworremovedifferencessothatinvestorscanbetterunderstandfinancialstatementspreparedunderdifferentaccountingframeworksIASBInternationalAccountingStandardsBoardhastheresponsibilityofIFRSIFRSInternationalFinancialReportingStandards(EUcountriesadopted)USGAAPUSGenerallyAcceptedAccountingPrinciplesdeterminedbyFASBFASBFinancialAccountingStandardsBoarddeterminesaccountingstandardsforfinancialstatements,GlobalAccountingStandards,IncomeStatementAsummaryofafirmsrevenuesandexpensesoveraspecifiedperiod,endingwithnetincomeorlossfortheperiod.,BalanceSheetAsummaryofafirmsfinancialpositiononagivendatethatshowstotalassets=totalliabilities+ownersequity.,PrimaryTypesofFinancialStatements,a.Howthefirmstandsonaspecificdate.b.WhatBWowned.c.Amountsowedbycustomers.d.Futureexpenseitemsalreadypaid.e.Cash/likelyconvertibletocashwithin1year.f.Originalamountpaid.g.Acc.deductionsforwearandtear.,Cash$90Acct.Rec.c394Inventories696PrepaidExpd5AccumTaxPrepay10CurrentAssetse$1,195FixedAssets(Cost)f1030Less:Acc.Depr.g(329)NetFix.Assets$701Investment,LT50OtherAssets,LT223TotalAssetsb$2,169,BasketWondersBalanceSheet(thousands)Dec.31,2007a,BasketWondersBalanceSheet(AssetSide),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-TermDebtf530ShareholdersEquityCom.Stock($1par)g200AddPdinCapitalg729RetainedEarningsh210TotalEquity$1,139TotalLiab/Equitya,b$2,169,BasketWondersBalanceSheet(thousands)Dec.31,2007,BasketWondersBalanceSheet(LiabilitySide),a.Measuresprofitabilityoveratimeperiod.b.Received,orreceivable,fromcustomers.c.Salescomm.,adv.,officerssalaries,etc.d.Operatingincome.e.Costofborrowedfunds.f.Taxableincome.g.Amountearnedforshareholders.,NetSales$2,211CostofGoodsSoldb1,599GrossProfit$612SG&AExpensesc402EBITd$210InterestExpensee59EBTf$151IncomeTaxes60EATg$91CashDividends38IncreaseinRE$53,BasketWondersStatementofEarnings(inthousands)forYearEndingDecember31,2007a,BasketWondersIncomeStatement,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.,FrameworkforFinancialAnalysis,TypesofComparisonsInternalComparisonsExternalComparisons,AFinancialRatioisanindexthatrelatestwoaccountingnumbersandisobtainedbydividingonenumberbytheother.,UseofFinancialRatios,Examples:RiskManagementAssociationDun&BradstreetAlmanacofBusinessandIndustrialFinancialRatios,Thisinvolvescomparingtheratiosofonefirmwiththoseofsimilarfirmsorwithindustryaverages.Similarityisimportantasoneshouldcompare“applestoapples.”,ExternalComparisonsandSourcesofIndustryRatios,CurrentCurrentAssetsCurrentLiabilitiesForBasketWondersDecember31,2007,Showsafirmsabilitytocoveritscurrentliabilitieswithitscurrentassets.,BalanceSheetRatios,LiquidityRatios,$1,195$500,=2.39,LiquidityRatios,BWIndustry2.392.152.262.091.912.01,Year200720062005,CurrentRatio,Ratioisstrongerthantheindustryaverage.,LiquidityRatioComparisons,Acid-Test(Quick)CurrentAssets-InvCurrentLiabilitiesForBasketWondersDecember31,2007,Showsafirmsabilitytomeetcurrentliabilitieswithitsmostliquidassets.,BalanceSheetRatios,LiquidityRatios,$1,195$696$500,=1.00,LiquidityRatios,BWIndustry1.001.251.041.231.111.25,Year200720062005,Acid-TestRatio,Ratioisweakerthantheindustryaverage.,LiquidityRatioComparisons,Strongcurrentratioandweakacid-testratioindicatesapotentialproblemintheinventoriesaccount.Notethatthisindustryhasarelativelyhighlevelofinventories.,RatioBWIndustryCurrent2.392.15Acid-Test1.001.25,SummaryoftheLiquidityRatioComparisons,CurrentRatioTrendAnalysisComparison,Acid-TestRatioTrendAnalysisComparison,Thecurrentratiofortheindustryhasbeenrisingslowlyatthesametimetheacid-testratiohasbeenrelativelystable.ThisindicatesthatinventoriesareasignificantproblemforBW.,ThecurrentratioforBWhasbeenrisingatthesametimetheacid-testratiohasbeendeclining.,SummaryoftheLiquidityTrendAnalyses,Debt-to-EquityTotalDebtShareholdersEquityForBasketWondersDecember31,2007,Showstheextenttowhichthefirmisfinancedbydebt.,BalanceSheetRatios,FinancialLeverageRatios,$1,030$1,139,=0.90,FinancialLeverageRatios,BWIndustry0.900.900.880.900.810.89,Year200720062005,Debt-to-EquityRatio,BWhasaveragedebtutilizationrelativetotheindustryaverage.,FinancialLeverageRatioComparisons,Debt-to-Total-AssetsTotalDebtTotalAssetsForBasketWondersDecember31,2007,Showsthepercentageofthefirmsassetsthataresupportedbydebtfinancing.,BalanceSheetRatios,FinancialLeverageRatios,$1,030$2,169,=0.47,FinancialLeverageRatios,BWIndustry0.470.470.470.470.450.47,Year200720062005,Debt-to-Total-AssetRatio,BWhasaveragedebtutilizationrelativetotheindustryaverage.,FinancialLeverageRatioComparisons,TotalCapitalizationTotalDebtTotalCapitalizationForBasketWondersDecember31,2007,Showstherelativeimportanceoflong-termdebttothelong-termfinancingofthefirm.,BalanceSheetRatios,FinancialLeverageRatios,$1,030$1,669,=0.62,(i.e.,LT-Debt+Equity),FinancialLeverageRatios,BWIndustry0.620.600.620.610.670.62,Year200720062005,TotalCapitalizationRatio,BWhasaveragelong-termdebtutilizationrelativetotheindustryaverage.,FinancialLeverageRatioComparisons,InterestCoverageEBITInterestChargesForBasketWondersDecember31,2007,Indicatesafirmsabilitytocoverinterestcharges.,IncomeStatementRatios,CoverageRatios,$210$59,=3.56,CoverageRatios,BWIndustry3.565.194.355.0210.304.66,Year200720062005,InterestCoverageRatio,BWhasbelowaverageinterestcoveragerelativetotheindustryaverage.,CoverageRatioComparisons,CoverageRatioTrendAnalysisComparison,Thisindicatesthatlowearnings(EBIT)maybeapotentialproblemforBW.Note,weknowthatdebtlevelsareinlinewiththeindustryaverages.,TheinterestcoverageratioforBWhasbeenfallingsince2005.Ithasbeenbelowindustryaveragesforthepasttwoyears.,SummaryoftheCoverageTrendAnalysis,ReceivableTurnoverAnnualNetCreditSalesReceivablesForBasketWondersDecember31,2007,Indicatesqualityofreceivablesandhowsuccessfulthefirmisinitscollections.,IncomeStatement/BalanceSheetRatios,ActivityRatios,$2,211$394,=5.61,(Assumeallsalesarecreditsales.),ActivityRatios,AvgCollectionPeriodDaysintheYearReceivableTurnoverForBasketWondersDecember31,2007,Averagenumberofdaysthatreceivablesareoutstanding.(orRTindays),IncomeStatement/BalanceSheetRatios,ActivityRatios,3655.61,=65days,ActivityRatios,BWIndustry65.065.771.166.383.669.2,Year200720062005,AverageCollectionPeriod,BWhasimprovedtheaveragecollectionperiodtothatoftheindustryaverage.,ActivityRatioComparisons,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,ActivityRatios,BWIndustry22.146.725.451.143.548.5,Year200720062005,PayableTurnoverinDays,BWhasimprovedthePTinDays.Isthisgood?,ActivityRatioComparisons,InventoryTurnoverCostofGoodsSoldInventoryForBasketWondersDecember31,2007,Indicatestheeffectivenessoftheinventorymanagementpracticesofthefirm.,IncomeStatement/BalanceSheetRatios,ActivityRatios,$1,599$696,=2.30,ActivityRatios,BWIndustry2.303.452.443.762.643.69,Year200720062005,InventoryTurnoverRatio,BWhasaverypoorinventoryturnoverratio.,ActivityRatioComparisons,InventoryTurnoverRatioTrendAnalysisComparison,TotalAssetTurnoverNetSalesTotalAssetsForBasketWondersDecember31,2007,Indicatestheoveralleffectivenessofthefirminutilizingitsassetstogeneratesales.,IncomeStatement/BalanceSheetRatios,ActivityRatios,$2,211$2,169,=1.02,ActivityRatios,BWIndustry1.021.171.031.141.011.13,Year200720062005,TotalAssetTurnoverRatio,BWhasaweaktotalassetturnoverratio.Whyisthisratioconsideredweak?,ActivityRatioComparisons,GrossProfitMarginGrossProfitNetSalesForBasketWondersDecember31,2007,Indicatestheefficiencyofoperationsandfirmpricingpolicies.,IncomeStatement/BalanceSheetRatios,ProfitabilityRatios,$612$2,211,=0.277,ProfitabilityRatios,BWIndustry27.7%31.1%28.730.831.327.6,Year200720062005,GrossProfitMargin,BWhasaweakGrossProfitMargin.,ProfitabilityRatioComparisons,GrossProfitMarginTrendAnalysisComparison,NetProfitMarginNetProfitafterTaxesNetSalesForBasketWondersDecember31,2007,Indicatesthefirmsprofitabilityaftertakingaccountofallexpensesandincometaxes.,IncomeStatement/BalanceSheetRatios,ProfitabilityRatios,$91$2,211,=0.041,ProfitabilityRatios,BWIndustry4.1%8.2%4.98.19.07.6,Year200720062005,NetProfitMargin,BWhasapoorNetProfitMargin.,ProfitabilityRatioComparisons,NetProfitMarginTrendAnalysisComparison,ReturnonInvestmentNetProfitafterTaxesTotalAssetsForBasketWondersDecember31,2007,Indicatestheprofitabilityontheassetsofthefirm(afterallexpensesandtaxes).,IncomeStatement/BalanceSheetRatios,ProfitabilityRatios,$91$2,160,=0.042,ProfitabilityRatios,BWIndustry4.2%9.6%5.09.19.110.8,Year200720062005,ReturnonInvestment,BWhasapoorReturnonInvestment.,ProfitabilityRatioComparisons,ReturnonInvestmentTrendAnalysisComparison,ReturnonEquityNetProfitafterTaxesShareholdersEquityForBasketWondersDecember31,2007,Indicatestheprofitabilitytotheshareholdersofthefirm(afterallexpensesandtaxes).,IncomeStatement/BalanceSheetRatios,ProfitabilityRatios,$91$1,139,=0.08,ProfitabilityRatios,BWIndustry8.0%18.0%9.417.216.620.4,Year200720062005,ReturnonEquity,BWhasapoorReturnonEquity.,ProfitabilityRatioComparisons,ReturnonEquityTrendAnalysisComparison,ROI2007=0.0411.02=0.042or4.2%ROIIndustry=0.0821.17=0.096or9.6%(Note:valuesarerounded),ROI=NetprofitmarginTotalassetturnover,EarningPower=Salesprof