Gibson10e_ch05PPT课件

1、Chapter 5, Slide #1Basics of AnalysisCOPYRIGHT 2007 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.Chapter 5Chapter 5, Slide #2Ratio Analysis Liquidity Measures a firms ability to meet its current obligatio

2、ns Leverage (borrowing capacity) Measures the degree of protector for long-term creditors Profitability Measures the earning ability of a firm Investor-focused Cash flow Indicate liquidity, borrowing capacity, and profitabilityChapter 5, Slide #3Ratio Analysis Interpreted in comparison with Prior ra

3、tios Competitor ratios Industry ratios Predetermined standardsChapter 5, Slide #4Complexities and Context Use of average data from balance sheet accounts Necessary when comparing against income statement data Does not Eliminate cyclical or seasonal variations Capture changes that occur unevenly thro

4、ughout the year Analysis must be performed and understood within the context of Native accounting principles Native business practices and cultureChapter 5, Slide #5Common-Size Analysis The use of percentages is usually preferable to the use of absolute amounts Vertical analysis All amounts of a yea

5、r expressed as a percentage of a base amount (e.g., net sales revenue, total assets) Horizontal analysis Amounts for comparative years are expressed as a percentage of the base year amountChapter 5, Slide #6Vertical AnalysisEach financial statement element is presented as a percentage of a designate

6、d base.Chapter 5, Slide #7Horizontal AnalysisEach financial statement element is presented as a percentage of a base amount from a selected year.Chapter 5, Slide #8Year-to-Year Change Analysis Use both absolute and percentages Guidelines: When an item has value in the base year and none in the next

7、period, the decrease is 100% A meaningful percent change cannot be computed when one number is positive and the other number is negative A percent change is incomputable when there is no figure for the base year.Chapter 5, Slide #9Industry Variations Financial components vary by type of industry Mer

8、chandising Inventory is a principal asset Sales may be primarily for cash or on credit Service Inventory is low or nonexistent Manufacturing Large inventory holdings Substantial investment in plant assetsChapter 5, Slide #10Descriptive Information Narrative data Annual report Trade periodicals Indus

9、try reviews Further explains the financial position of a firmChapter 5, Slide #11Comparisons Provides context for analysis of ratios and financial data Common types Trend analysis SIC: Standard Industrial Classification NAICS: North American Industry Classification System Industry averages; competit

10、or comparisonsChapter 5, Slide #12Comparisons: Trend Analysis A study of the financial history of a firm Longitudinal ratio comparison Falling Rising Relatively constant Highlight Effective management Evidence of problemsChapter 5, Slide #13Comparisons: SIC Classifies business by industry Defines in

11、dustries in accordance with the composition and structure of the economy Coding structure Division Major group Industry group Industry Reported in SEC registrant filingsChapter 5, Slide #14Comparisons: NAICS Joint creation of NAFTA partners: Canada, U.S., and Mexico Industry is defined by similar pr

12、oduction processes Coding structure Sector Sub-sector Industry group NAICS industry National industryChapter 5, Slide #15Comparisons: Industry Industry comparison complicated by highly diversified companies Financial services Base their analysis on industry placement Provide composite industry dataC

13、hapter 5, Slide #16Financial Services PublicationsPublicationServiceCoverageDataClassificationThe Department of Commerce Financial ReportEconomic Surveys Division, Bureau of the CensusManufacturing, mining, and trade corporationsIncome statement and balance sheet data and ratiosNAICSAnnual Statement

14、 StudiesRisk Management AssociationManufacturing, wholesaling, retailing, service, agriculture, and constructionCommon-size financial statements and ratiosNAICS and SICStandard & Poors Industry SurveysStandard & Poors50 North American and global industriesIndustry write-ups and statisticsNAI

15、CSAlmanac of Business and Industrial Financial RatiosCCH, Inc.192 industriesCorporate tax return dataNAICSChapter 5, Slide #17Financial Services Publications (contd)PublicationServiceCoverageDataClassificationIndustry Norms and Key Business RatiosDun & Bradstreet800 business lines; 5 segmentsCon

16、densed financial statements; ratiosSICvariousValue Line Investment Service98 industriesLongitudinal financial informationChapter 5, Slide #18Comparisons: CautionRatios are subject to variance from: Differing data Inconsistent formula construction Optional (elective) accounting treatment Different fi

17、scal year-ends Varying financial policies Inconsistent basis (before or after tax)Chapter 5, Slide #19Relative Size of Firm Comparison of disparate size firms Capital market access Economy of scale (purchasing) Wider customer base Information Absolute: amplifies comparison difficulty Common-size: el

18、iminates some of the difficulty Percent of market helps to define relative sizeChapter 5, Slide #20Other Resources: Wards Business Directory Domestic and public companies 8-volume set V1, 2, 3Alphabetical listing V4State and ZIP code V5SIC code V6-7State then SIC code V8NAICS code then revenueChapte

19、r 5, Slide #21Other Resources: Standard & Poors Stock Reports Companies listed on various stock exchanges Alphabetical by exchange NYSE American Stock Exchange NASDAQ stock market Regional exchangesChapter 5, Slide #22Other Resources: Standard & Poors Register Of Corporations, Directors, And

20、 Executives 3-volumes V1Alphabetical by firm name V21Alphabetical listing of key individuals V22Industries in 7 subsectionsChapter 5, Slide #23Other Resources: Standard & Poors Analysts Handbook Selected income statement and balance sheet items Related ratios Applicable to Standard & Poors i

21、ndustry group stock price indexesChapter 5, Slide #24Other Resources: Standard & Poors Corporation Records U.S. corporations Background information Detailed financial statisticsChapter 5, Slide #25Other Resources: Americas Corporate Families: The Billion Dollar Directory Corporate family listing

22、s Alphabetical Geographical SIC Cross-reference divisions, subsidiaries, and ultimate parent companiesChapter 5, Slide #26Other Resources: D&B Million Dollar Directory Company listings Alphabetical Geographically SICChapter 5, Slide #27Other Resources: Directory Of Corporate Affiliates Corporate

23、 information Divisions Subsidiaries Affiliates Indexes Alphabetical Geographical SICChapter 5, Slide #28Other Resources: Thomas Register Of American Manufacturers Comprehensive reference Products Services Company profiles Catalog fileChapter 5, Slide #29Other Resources: Mergent Industrial Manual New

24、 York and American Stock Exchanges History Business Properties Subsidiaries Financial statements SIC codesChapter 5, Slide #30Other Resources: Security Owners Stock Guide Published by Standard & Poors Survey of 5,300 stocks Trading activity Price range Dividends etc.Chapter 5, Slide #31Other Res

25、ources: Standard & Poors Statistical Service Industry statistics Agriculture Metals Building Transportation etc.Chapter 5, Slide #32Other Resources: Dividend Records Mergent Dividend Record Standard & Poors Annual Dividend RecordProvide dividend records of virtually publicly owned American and some foreign companiesChapter 5, Slide #33Other Resources: D&B Reference Book of Corporate Managements Principle corporate officers Year of birth Education Military s