公司财务管理第二章_免费下载.ppt

1、CORPORATE FINANCE,谢群（Mars) International Business Faculty Email: Phone:188 1865 1852,Chapter 2 Financial Statements, Taxes, and Cash Flow,3,Key Concepts and Skills,Know the difference between accounting value and market value Know the difference between accounting income and cash flow,Know the diffe

2、rence between average and marginal tax rates Know how to determine a firms cash flow from its financial statements,5,Outline,2.1The Balance Sheet（平衡表） 2.2The Income Statement（损益表） 2.3Taxes（税负） 2.4Cash Flow（现金流）,6,2.1The Balance Sheet,The balance sheet is a snapshot（快照） of the firms assets and liabil

3、ities at a given point in time. What a firm owns What a firm owes The difference between the two,7,Figure 2.1 The Balance Sheet,8,Left hand side-Assets(资产),Assets are listed in order of liquidity (流动性), refer to the speed and ease with which an asset can be converted to cash; Current and fixed asset

4、s.,9,Current assets(流动资产),An asset that has a life of less than one year, e.g. cash, short term investment, inventory, account receivable.,10,Fixed assets（固定资产）,An asset that has life of longer than one year, can be tangible or intangible, e.g. machine, truck, buildings, trademark, patent, etc.,11,R

5、ight Hand Side - Liabilities and owners equity（负债与所有者权益）,Right hand side includes Liabilities; Owners equity,12,Liabilities,Liabilities are classified as current or long term liabilities; Current liabilities - payment term shorter than one year; Long term liabilities payment term longer than one yea

6、r.,13,Shareholders Equity(股东权益),The difference between total assets and total liabilities is the shareholders equity, or common equity, or owners equity;,14,Balance Sheet Identity (资产负债表恒等式),Assets = Liabilities + owners Equity; or Owners equity = assets liabilities. The balance sheet is intended to

7、 reflect the fact that, if the firm were to sell all of its assets and use the money to pay off its debts, then whatever residual value remained would belong to the shareholders. So the left hand side is always equal to the right hand side.,Example: building the balance sheet,A firm has current asse

8、ts of $100, net fixed assets of $500, short-term debt of $70, and long-term debt of $200. what does the balance sheet look like? What is shareholders equity? What is net working capital?,16,US Corporation Balance Sheet Table 2.1,Three particularly important things,Liquidity Debt versus equity Market

9、 value versus book value,18,Net working capital (NWC，净营运资本),NWC =Current assets - Current liabilities. As on Table 2.1, On 31/12/03, NWC = 1403 - 369 = $1034 On 31/12/02, NWC = 1112 - 428 = $684 In a healthy firm, NWC is usually positive, which means that the cash that will be available over the nex

10、t 12 months exceed the cash that must be paid over the same period.,19,Financial leverage (财务杠杆),Financial leverage: debt is like a lever in the sense that using it can greatly magnify both gains and loses; Financial leverage is measured by liabilities/assets, or liabilities/equity; The more debt a

11、firm has, the greater is its degree of financial leverage;,20,Market Value vs. Book Value,The balance sheet provides the book value of the assets, liabilities and equity. Market value is the price at which the assets, liabilities or equity can actually be bought or sold.,21,Example 2.2 Klingon Corpo

12、ration,22,What is the balance sheet identity? What is liquidity? Why is it important? Market value and book value are often very different. Why? Which is more important to the decision-making process?,Questions:,23,2.2Income Statement（损益表）,The income statement measures performance over some period o

13、f time; The income statement is more like a video of the firms operations for a specified period of time.,24,The income statement equation (损益表等式),Revenue Expenses = Income You generally report revenues first and then deduct any expenses for the period.,25,Table 2.2,Three particularly important thin

14、gs,GAAP Cash versus noncash items Time and cost,27,GAAP (公认会计原则),GAAP: generally accepted accounting principle,28,The revenue recognition principle (收入确认原则),This principle requires companies to record when revenue is (1) realized or realizable and (2) earned, not when cash is received. This way of a

15、ccounting is called accrual basis accounting （权责发生制会计）. Reference: Income and expenditure realization system, or accounting on cash basis (对应收付实现制)。,29,The matching principle (收支对应原则, 匹配原则 ).,Expenses have to be matched with revenues as long as it is reasonable to do so. Expenses are recognized not

16、when the work is performed, or when a product is produced, but when the work or the product actually makes its contribution to revenue.,30,Non-cash items (非现金项目),Non-cash items makes the main difference between accounting statement and cash flow;,31,Depreciation (折旧),Depreciation is one of the main

17、non-cash items-a fixed asset which had caused cash outflow when it was purchased, will depreciate over many years. Depreciation is an application of the matching principle in GAAP (matching the expense of purchasing the asset with the benefits produced from owning it),Times and costs,The difference

18、the short run and the long run The difference the product costs and the period costs,Earnings management,In order to smooth out dips and surges, companies have significant discretion over their reported earnings. Because corporations frequently like to show investors that they have steadily growing

19、earnings.,34,Work the Web Example,Publicly traded companies must file regular reports with the Securities and Exchange Commission For US listed companies () - Filings Taxes code is always changing, because it is the result of political, not economic, forces.,36,Corporate tax,Corporate tax

20、 rates are different on different income levels, as shown on p28,37,Marginal vs. average tax rates (边际税率与平均税率),Marginal the percentage paid on the next dollar earned Average the tax bill / taxable income Example as on p29 Table 2.4,38,2.4Cash Flow （现金流）,By cash flow, we simply mean the difference be

21、tween the number of dollars that came in and the number that went out. Cash flow is one of the most important pieces of information that a financial manager can derive from financial statements;,Cash flow identity,Cash Flow From Assets (CFFA) = Cash Flow to Creditors + Cash Flow to Stockholders.,40,

22、Cash flow from assets (CFFA),Cash Flow From Assets involves three components: Operating cash flow (cash flow that results from the firms day to day activities of producing and selling); Capital spending (net spending on fixed assets); The change in net working capital (the amount spent on net workin

23、g capital). CFFA = OCF -CS Changes in NWC.,41,Look at Table 2.2 on p24,42,Operating cash flow (OCF，经营现金流),Calculating OCF by I/S （Income Statement）: OCF = Revenue Cost of goods sold Taxes =1509 750 - 212 =547 depreciation is an non-cash expense, not an cash outflow; interest is a financing expense,4

24、3,Look at Table 2.1 on P21,44,Net Capital Spending (NCS， 资本支出净额),NCS is money spent on fixed assets less money received from the sale of fixed assets; NCS = Ending net fixed assets Beginning net fixed assets + Depreciation = 1709 1644 + 65 = 130 (B/S NCS can be negative if the firm sold off more ass

25、ets than it purchased.,45,Change in Net Working Capital (NWC, 营运资金净额),Change in NWC is the additional investment in current assets = Ending NWC Beginning NWC As on Table 2.1, Ending NWC = 1403 - 389 = $1014 Beginning NWC = 1112 - 428 = $684 Change in NWC = 1014 684 = $330 US Corporation had a net in

26、vestment of $330 in NWC for the year.,46,Conclusion: cash flow from assets (CFFA, 产生于资产的现金流）,US Corporation 2003 cash flow from assets operation cash flow$547 -net capital spending 130 -change in NWC 330 CFFA $87,47,How to explain the result?,A positive cash flow from assets sometimes is called by a

27、 different name, FREE CASH FLOW(自由现金流), because it is free to distribute to creditors or shareholders, and need not to put in fixed asset or working capital investment; A negative cash flow from assets means that the firm raised more money by borrowing, and issuing more stocks than it paid out to cr

28、editors and stockholders that year.,48,Cash flows to creditors and stockholders (流向债权人和股东的现金流),It represent the net payment to creditors and stockholders during that year. Cash flow to creditors=interest paid-Net new borrowing Cash flow to stockholders=dividends paid-Net new equity raised,49,Cash fl

29、ow to creditors,CF to creditors (bondholders) = interest paid new borrowing As on Table 2.2 (I/S, P24), interest paid = $70 As on Table 2.1 (B/S, P21), new borrowing = Ending LTD-Beginning LTD = 454 408 = $46 CF to creditors = 70 46 =$24,50,Cash flow to stockholders,Cash flow to stockholders = divid

30、end paid net new equity raised As on Table 2.2 (I/S, P27), Dividend paid to shareholder is $103 As on Table 2.1 (B/S，P24), Common stock & paid-in surplus(普通股与已付盈余) is $40 Cash flow to stockholders = 103 40 = $63,51,Summary on cash flow of US Corporation,OCF (I/S) = EBIT + depreciation taxes = $547 NCS ( B/S and I/S) = ending net fixed