accountingstatement(2).ppt

1、1,Unit 12,Financial Statement Analysis,2,P 109,Current Ratio 流动比率 Quick Ratio 速动比率,Liquidity Ratio,（1）,3,P 109,Current Ratio =,Current Assets,Current Liabilities,4,Example,Cash Marketable securities Accounts and notes receivable Inventories Prepaid expenses Current liabilities Working capital Curren

2、t ratio Quick ratio,Lim Co.,Starbuck Co.,90,500 45,500 75,000 25,000 115,000 90,000 264,000 380,000 5,500 9,500 210,000 210,000,340,000,340,000,2.6,2.6,1.34,0.76,5,P 109,Debt to Assets Ratio Capitalization Ratio Debt to Equity Ratio Interest Coverage Ratio,Financial Leverage Ratio,（2）,Debt Ratio,6,P

3、 110,Debt to Assets Ratio,Total Liabilities,Total Assets,=,7,Example,For example, if Company A had assets of $1.5 million US Dollars (USD), but a debt of $1 million USD, its debt/asset ratio would be ?. For many investors this may be an attractive number. However, if Company B has assets of $1 milli

4、on USD and debt of $1.5 million USD, it has a debt/asset ratio of?.,0.67,1.5,8,Explain,If the debt/asset ratio number is above one, investors know that more of the companys assets are financed by debt rather than equity. If the number is below one, the opposite is true. If the number is too far abov

5、e one, that may be a signal to investors the company has too much debt and is not worth the risk, despite what the assets may be.,9,P 110,Debt to Equity Ratio,Total Debt,Total Equity,=,10,2004 2003,310,000 443,000 829,500 787,500,0.37,0.56,Debt to Assets Ratio?,Example,11,Example,Generally, any comp

6、any that has a debt to equity ratio of over 40 to 50% should be looked at more carefully to make sure there are no liquidity problems. If you find the companys working capital, and current / quick ratios drastically low, this is a sign of serious financial weakness.,12,P 110,Capitalization Ratio,Lon

7、g-term Debt,Long-term Debt+ Owners Equity,=,13,P 111,Interest Coverage Ratio,Earnings before Interests and Taxes,Interest,=,14,P 111,Total Assets Turnover Accounts Receivable Turnover Inventory Turnover,Efficient Ratio,（3）,15,P 111,Total Assets Turnover,Net Sales,Total Assets,Help the analyst apprai

8、se the overall efficiency of asset employment and the level of capital intensity.,=,The higher the ratio, the more efficient in managing and controlling assets.,Example,4.11,1.36,17,P 111,Accounts Receivable Turnover,Net Sales,Accounts Receivable,=,Decrease in this ratio indicates that receivables h

9、ave increased at a greater rate than sales.,18,Example,Net sales on accounts Accounts receivable Average accounts receivable Accounts receivable turnover Days sales outstanding (Number of days sales in receivables ),Current year Preceding year,750,394 559,995,118,008 87,558,102,783,7.3,49.3,19,Accou

10、nts receivable analysis,Accounts receivable (end of year) Monthly average accounts receivable (net) Net sales on accounts,Current year Preceding year,676,100 611,900,627,000 550,100,5,016,000 3,850,700,P245,100.,determine Accounts receivable turnover and Days sales outstanding,20,P 111,Inventory Tur

11、nover,Cost of Goods Sold,Ending Inventory,=,The higher the inventoryturnover ratio, the better, provided you are able to fill customers orders on time.,21,P 111,Inventory Turnover,Cost of Goods Sold,Average Inventory,=,22,A companysinventory turnover ratio should be compared to 1) its previous ratio

12、s, 2) its planned ratio,and 3) the industry average.,Example,2004 2003,Cost of goods sold Inventories: Beginning of year End of year Average Inventory turnover,1,043,000 820,000 283,000 311,000 264,000 283,000,273,500,297,000,3.8,2.8,23,Inventory analysis,Sales Beginning inventories Purchases Ending

13、 inventories,Current year Preceding year,4,425,000 4,300,000,642,500 607,500,677,500 642,500,2,675,000 2,785,000,P246,determine for each year (1) the inventory turnover and (2) the number of days sales in inventory,24,P 112,Rate of Return on Assets Return on Owners Investment Profit Margin Earnings per share,Profitability Ratio,（4）,25,P 112,Rate of Return on Assets,Net income after Taxes,Total Assets,=,26,Net income Total assets: Beginning of year End of year Average Rate earned on total assets,2004 2003,97,000 88,500,1,185,000,1,139,500 1,230,500,1,230,500 1,187,500,Example,1,209