財(cái)務(wù)管理ppt英文課件Chapter-6

1、Chapter 6Financial Statement Analysis0Financial StatementsA Possible Framework for AnalysisRatio AnalysisTrend AnalysisCommon-Size and Index AnalysisFinancial Statement Analysis1Copyright 2001 Prentice-Hall, Inc.Uses of Financial Statement InformationInternal uses:performance evaluationplanning for

2、the futureExternal uses:evaluation by outside partiesevaluation of main competitorsidentifying potential takeover targets2Copyright 2001 Prentice-Hall, Inc.Plan - Focus on assessing the current financial position and evaluating potential firm opportunities.Control - Focus on return on investment for

3、 various assets and asset efficiency.Understand - Focus on understanding how suppliers of funds analyze the firm.Examples of Internal Uses of Statement Analysis3Copyright 2001 Prentice-Hall, Inc.Trade Creditors - Focus on the liquidity of the firm.Bondholders - Focus on the long-term cash flow of th

4、e firm.Shareholders - Focus on the profitability and long-term health of the firm.Examples of External Uses of Statement Analysis4Copyright 2001 Prentice-Hall, Inc.Income StatementA summary of a firms revenues and expenses over a specified period, ending with net income or loss for the period.Revenu

5、e Expenses IncomeBalance SheetA summary of a firms financial position on a given date that shows total assets = total liabilities + owners equity.Primary Types of Financial Statements5Copyright 2001 Prentice-Hall, Inc.The Balance SheetCurrentAssetsFixed Assets1.Tangible fixed assets2.Intangible fixe

6、d assetsNetWorking CapitalCurrent LiabilitiesLong-Term DebtShareholders EquityTotal Value of AssetsTotal Value of Liabilities and Shareholders Equity6Copyright 2001 Prentice-Hall, Inc.Balance Sheet AnalysisWhen analyzing a balance sheet, the financial manager should be aware of three concerns:Accoun

7、ting liquidityDebt versus equityValue versus cost7Copyright 2001 Prentice-Hall, Inc.Accounting Liquidity Refers to the ease and quickness with which assets can be converted to cash.Current assets are the most liquid.Some fixed assets are intangible.The more liquid a firms assets, the less likely the

8、 firm is to experience problems meetingshort-term obligations.Liquid assets frequently have lower rates of return than fixed assets.8Copyright 2001 Prentice-Hall, Inc.Debt versus EquityGenerally, when a firm borrows it gives the bondholders first claim on the firms cash flow.Thus shareholders equity

9、 is the residual difference between assets and liabilities.Financial leverage increases the potential reward to shareholders, but also increases the potential for financial distress and business failure.9Copyright 2001 Prentice-Hall, Inc.Value versus CostGenerally Accepted Accounting Principles (GAA

10、P) show that audited financial statements show assets at historical cost or book value.Market value is a completely different concept.Current value of a firm relates to market value, or the price that the asset would yield in the current market place.10Copyright 2001 Prentice-Hall, Inc.Income Statem

11、ent ExampleSales$2000Costs 1400Depreciation 100EBIT 500Interest 100Taxable Income 400Taxes 200Net Income $200Dividends 80 Addition to R/E $12011Copyright 2001 Prentice-Hall, Inc.Income Statement AnalysisThere are three things to keep in mind when analyzing an income statement:GAAPNon Cash ItemsTime

12、and Costs12Copyright 2001 Prentice-Hall, Inc.Generally Accepted Accounting Principles (GAAP)The matching principal of GAAP dictates that revenues be matched with expenses. Thus, income is reported when it is earned, even though no cash flow may have occurred.13Copyright 2001 Prentice-Hall, Inc.Incom

13、e Statement AnalysisNon Cash ItemsDepreciation is the most apparent. No firm ever writes a check for “depreciation”.Another noncash item is deferred taxes, which does not represent a cash flow.14Copyright 2001 Prentice-Hall, Inc.Income Statement AnalysisTime and CostsIn the short run, certain equipm

14、ent, resources, and commitments of the firm are fixed, but the firm can vary such inputs as labor and raw materials.In the long run, all inputs of production (and hence costs) are variable.Financial accountants do not distinguish between variable costs and fixed costs. Instead, accounting costs usua

15、lly fit into a classification that distinguishes product costs from period costs.15Copyright 2001 Prentice-Hall, Inc.1. Analysis of the funds needs of the firm.Trend / Seasonal ComponentHow much funding will be required in the future?Is there a seasonal component?Framework for Financial Analysis16Co

16、pyright 2001 Prentice-Hall, Inc.Health of a FirmFinancial Ratios1. Individually2. Over time3. In combination4. In comparison1. Analysis of the funds needs of the firm.2. Analysis of the financial condition and profitability of the firm.Framework for Financial Analysis17Copyright 2001 Prentice-Hall,

17、Inc.Examples:Volatility in salesVolatility in costsProximity to break-even point1. Analysis of the funds needs of the firm.2. Analysis of the financial condition and profitability of the firm.3. Analysis of the business risk of the firm.Business risk relates to the risk inherent in the operations of

18、 the firm.Framework for Financial Analysis18Copyright 2001 Prentice-Hall, Inc.A Financial Manager must consider all three jointly when determining the financing needs of the firm.Determiningthe financingneeds of the firm.1. Analysis of the funds needs of the firm.2. Analysis of the financial conditi

19、on and profitability of the firm.3. Analysis of the business risk of the firm.Framework for Financial Analysis19Copyright 2001 Prentice-Hall, Inc.Negotiationswithsuppliers ofcapital.Determiningthe financingneeds of the firm.1. Analysis of the funds needs of the firm.2. Analysis of the financial cond

20、ition and profitability of the firm.3. Analysis of the business risk of the firm.Framework for Financial Analysis20Copyright 2001 Prentice-Hall, Inc.Ratio AnalysisFinancial ratios are relationships determined from a firms financial information.Used to compare and investigate relationships between di

21、fferent pieces of financial information.Ratios eliminate the size problem.21Copyright 2001 Prentice-Hall, Inc.Categories of Financial RatiosLiquidity - measures the firms short-term solvency.Capital structure - measures the firms ability to meet long-run obligations (financial leverage).Asset manage

22、ment (turnover) - measures the efficiency of asset usage.Profitability - measures the firms ability to control expenses.Market value - per share ratios22Copyright 2001 Prentice-Hall, Inc.Liquidity Ratios liabilitiesCurrent Inventory - assetsCurrent ratioQuick =liabilitiesCurrent assetsCurrent ratioC

23、urrent =(Acid-Test ratio)23Copyright 2001 Prentice-Hall, Inc.Financial Leverage Ratios equity Totalassets Total multiplierEquity =equity Totaldebt Total ratioDebt/equity=Capitalization Totaldebt Long-term Total Capitalization Ratio = Interest charges EBIT ratiocoverage Interest =24Copyright 2001 Pre

24、ntice-Hall, Inc.Turnover Ratios25Copyright 2001 Prentice-Hall, Inc.Just-in-timeAn approach to inventory management and control in which inventories are acquired and inserted in production at the exact times they are needed.The goal of a JIT system is not only reduce inventories but to continuously i

25、mprove productivity, product quality, and manufacturing flexibility.26Copyright 2001 Prentice-Hall, Inc.Turnover Ratios (continued)27Copyright 2001 Prentice-Hall, Inc.Profitability RatiosSalesprofitNet margin Net Profit =100%assets TotalNet Profit after Taxes ROI=ROI = Net profit margin Total asset

26、turnover28Copyright 2001 Prentice-Hall, Inc.Profitability Ratios (continued)EquityAssetsAssetsSalesSalesprofitNet ROE=100% EquityprofitNet (ROE)equity on Return =Net profit marginTotal asset turnoverEquity Multiplier29Copyright 2001 Prentice-Hall, Inc.Market Value Ratios30Copyright 2001 Prentice-Hal

27、l, Inc.The Du Pont IdentityBreaks ROE into three parts:operating efficiencyasset use efficiencyfinancial leverage31Copyright 2001 Prentice-Hall, Inc.The Du Pont ApproachReturn on equityReturn on assetEquity Multiplierprofit marginTotal Asset Turnover Ratio11 Debt ratioAssetDebtAssetProfitSales32Copy

28、right 2001 Prentice-Hall, Inc.Benchmarks for ComparisonTime-trend analysis - examine how a particular ratio(s) have performed historically.Peer group analysis - using similar firms (competitors) for comparison of results.33Copyright 2001 Prentice-Hall, Inc.Problems with Ratio AnalysisNo underlying theory to identify correct ratios to use or appropriate benchmarks.Consolidated financial statements are not appropriate to use.Firms may use different accounting procedures.Firms may have different recording perio