公司金融课件chap003.ppt

1、Working With Financial Statements,Key Concepts and Skills,Understand sources and uses of cash and the Statement of Cash Flows Know how to standardize financial statements for comparison purposes Know how to compute and interpret important financial ratios Be able to compute and interpret the DuPont

2、Identity Understand the problems and pitfalls in financial statement analysis,Chapter Outline,Cash Flow and Financial Statements: A Closer Look Standardized Financial Statements Ratio Analysis The DuPont Identity Using Financial Statement Information,Sample Balance Sheet,Numbers in millions,Sample I

3、ncome Statement,Numbers in millions, except EPS they need to be compared to something Time-Trend Analysis Used to see how the firms performance is changing through time Internal and external uses Peer Group Analysis Compare to similar companies or within industries SIC and NAICS codes,Real World Exa

4、mple - I,Ratios are figured using financial data from the 2003 Annual Report for Home Depot Compare the ratios to the industry ratios in Table 3.12 in the book Home Depots fiscal year ends Feb. 1 Be sure to note how the ratios are computed in the table so you can compute comparable numbers. Home Dep

5、ot sales = $64,816 MM,Real World Example - II,Liquidity ratios Current ratio = 1.40 x; Industry = 1.8x Quick ratio = .45x; Industry = .5x Long-term solvency ratio Debt/Equity ratio (Debt / Worth) = .54x; Industry = 2.2x. Coverage ratio Times Interest Earned = 2282x; Industry = 3.2x,Real World Exampl

6、e - III,Asset management ratios: Inventory turnover = 4.9x; Industry = 3.5x Receivables turnover = 59.1x (6 days); Industry = 24.5x (15 days) Total asset turnover = 1.9x; Industry = 2.3x Profitability ratios Profit margin before taxes = 10.6%; Industry = 2.7% ROA (profit before taxes / total assets)

7、 = 19.9%; Industry = 4.9% ROE = (profit before taxes / tangible net worth) = 34.6%; Industry = 23.7%,Potential Problems,There is no underlying theory, so there is no way to know which ratios are most relevant Benchmarking is difficult for diversified firms Globalization and international competition

8、 makes comparison more difficult because of differences in accounting regulations Varying accounting procedures, i.e. FIFO vs. LIFO Different fiscal years Extraordinary events,Work the Web Example,The Internet makes ratio analysis much easier than it has been in the past Click on the web surfer to g

9、o to Choose a company and enter its ticker symbol Click on Ratios and then Financial Condition and see what information is available,Quick Quiz,What is the Statement of Cash Flows and how do you determine sources and uses of cash? How do you standardize balance sheets and income statements and why is standardization useful? What are the major categories of ratios and how do you compute specific ratios within each category? What are some of the problems associated with financial statement analysis?,End of Chapter,Comprehensive Problem,XYZ Corporation has the foll