財務(wù)管理專業(yè)英語-課件

4.FinancialRatioAnalysis4.1FinancialRatioAnalysis

財務(wù)比率分析4.2LiquidityRatios

流動性比率4.3DebtManagementRatios

債務(wù)管理比率4.FinancialRatioAnalysis4.14.FinancialRatioAnalysis4.4AssetManagementRatios

資產(chǎn)管理比率4.5ProfitabilityRatios

盈利比率4.6MarketValueRatios

市場價值比率4.FinancialRatioAnalysis4.44.FinancialRatioAnalysis4.7UsesandLimitationsofFinancialRatioAnalysis

財務(wù)比率分析的使用和限制4.FinancialRatioAnalysis4.7AnalyzingFinancialRatiosSomepreliminarycommentsarewarranted:1.Financialratiosarenotstandardized.AnalyzingFinancialRatiosSomeAnalyzingFinancialRatios2.Analyzingasinglefinancialratioforagivenyearmaynotbeveryuseful.AnalyzingFinancialRatios2.AAnalyzingFinancialRatios3.Someofafirm’sfinancialaccountingpracticesorchoiceswillaffectitsfinancialstatementsand,finally,itsfinancialratios.AnalyzingFinancialRatios3.SAnalyzingFinancialRatios4.Financialratiosdonotprovideanalystswithalloftheanswersaboutafirm’scondition.AnalyzingFinancialRatios4.F4.2LiquidityRatiosLiquidityratiosindicateafirm’sabilitytopayitsobligationsintheshortrun.4.2LiquidityRatiosLiquidity4.2LiquidityRatiosFinancialmanagersmustpaycloseattentiontoliquidityratiostoensuretheyreflectahighprobabilityofthefirmbeingabletopromptlyandfullypayitsbillswithoutunduestress.4.2LiquidityRatiosFinancial4.2LiquidityRatiosNetworkingcapitaltototalassetsratio=NetworkingcapitalTotalassets凈營運資本比總資產(chǎn)比率4.2LiquidityRatiosNetworkin4.2.1CurrentratioDenominator分母

Numerator分子4.2.1Currentratio4.2.1CurrentratioForexample,acurrentratioof1.5impliesthatafirmhas$1.5incurrentassetsforevery$1incurrentliabilitiesandthushas1.5timesthecurrentassets,orhasitscurrentliabilitiescovered1.5timesover.4.2.1CurrentratioForexample4.2.1CurrentratioExcessivelyhighcurrentratios,however,mayindicatedafirmmayhavetoomuchofitslong-terminvestor-suppliedcapitalinvestedinshort-termlow-earningcurrentassets.4.2.1CurrentratioExcessively4.2.1CurrentratioInaninflationaryenvironment,firmsthatuselast-in,first-out(LIFO)inventoryvaluationwilllikelyhavelowercurrentratiosthanfirmsthatusefirst-in,first-out(FIFO).4.2.1CurrentratioInaninfla4.2.1CurrentratioWithLIFOinventoryvaluation,firmsdeterminethevalueofcostofgoodssoldontheincomestatementbythecostoftheinventorymostrecentlyproduced;4.2.1CurrentratioWithLIFOi4.2.1CurrentratioExceptinsomedecliningcostindustries,inflationwilllikelycausethevalueofthis“older”inventorycarriedonthebalancesheettobelessthanthemorerecentcostofproducingthatinventory.4.2.1CurrentratioExceptins4.2.1CurrentratioThevalueofinventoryreportedonthebalancesheetisfrommorerecentperiodsandwillbebasedonmorerecent(higher)costdatathantheinventorybalanceofsimilarfirmsthatuseLIFO.4.2.1CurrentratioThevalueo4.2.1CurrentratioYet,ifafirmhasacurrentratiothatislessthanone,thesametransactionwouldleadtoalowercurrentratio.4.2.1CurrentratioYet,ifaf4.2.1CurrentratioEqualabsolutechangesinthenumeratoranddenominatormayleadtoapparentimprovementsordeteriorationinratiosthatdonotreflectrealchangesinperformance.4.2.1CurrentratioEqualabsol4.2.1CurrentratioAnalystsshouldbeawarethatafirm’smanagersmayundertakeyear-endtransactions,suchastheonedescribedabove,tomakecertainratiosappearbetterfollowingaperiodofdisappointingperformance.4.2.1CurrentratioAnalystssh4.2.1CurrentratioOneofthefirmsmayhaveasubstantialportionofitscurrentassetstiedupininventories,whiletheotherfirmmayhavelargecashandmarketablesecurities.4.2.1CurrentratioOneoftheLatterDidhewalkorswim?Thelatterseemsunlikely.LatterDidhewalkorswim?Th4.2.1CurrentratioManagersoranalystscanexamineafirm’scommon-sizebalancesheetovertimetoseerelativechangesinthecompositionofbothcurrentassetsandcurrentliabilitiesandassesschangesordifferencesinliquidity.4.2.1CurrentratioManagersor4.2.2Quickratio4.2.2Quickratio4.2.2QuickratioTherationaleforexcludinginventoryisthatitistheleastliquidofafirm’scurrentassetsandmaynotbeasreadilyavailabletomeetashort-termmaturingobligationastheothermoreliquidcurrentassets.4.2.2QuickratioTherationale4.2.2QuickratioForanyfirmcarryinganinventorybalance,thequickratiowillbelowerthanthecurrentratio.4.2.2QuickratioForanyfirmForexample,supposeafirm’scurrentratiohasbeenfairlystableandconsistentwithindustryaveragesoverthepastthreeyears.Butduringthesameperiod,thefirm’squickratiohasdeclinedandisnowbelowindustryaverages.Forexample,supposeafirm’s4.2.2QuickratioWhethertheincreaseislikelytemporaryorpermanentHowthefirmfinancestheinventoryHowtherelativeincreasesininventorywillaffectthefirm’sliquidityandoverallperformance4.2.2QuickratioWhetherthei4.2.3Cashratio4.2.3Cashratio4.2.3CashratioAnalyzingacashratio,however,couldbehelpfulforassessingafirm’sliquiditywhenthefirmneedstopaymostorallofitscurrentliabilitieswithcashinthenearterm.4.2.3CashratioAnalyzingaca4.3DebtManagementRatiosDebtmanagementratioscharacterizeafirmintermsoftherelativemixofdebtandequityfinancingandprovidemeasuresofthelong-termdebtpayingabilityofthefirm.4.3DebtManagementRatiosDebt4.3DebtManagementRatiosLeverageratios:

324.3DebtManagementRatiosLeve4.3DebtManagementRatiosCoverageratios:

334.3DebtManagementRatiosCove4.3.1DebtRatioCreditorpreferalowofmoderatedebtratiobecauseitprovidesmoreprotectionifthefirmexperiencesfinancialproblems.4.3.1DebtRatioCreditorprefe4.3.1DebtRatio354.3.1DebtRatio354.3.2Long-termDebtRatioLong-termdebtratioiscomputedbydividingafirm’slong-termdebt,usuallydefinedasallnon-currentliabilities,byitstotalassets.4.3.2Long-termDebtRatioLong4.3.2Long-termDebtRatioWhencomputingthedebtratioandthelong-termdebtratio,somemanagersandanalystsusetotalcapitalinthedenominatorinplaceoftotalassets.4.3.2Long-termDebtRatioWhen4.3.2Long-termDebtRatioDebt-to-totalcapitalratio=Totalliabilitiesnon-currentliabilities+equity4.3.2Long-termDebtRatioDebt4.3.2Long-termDebtRatioLong-termdebttototalcapitalratio=Long-termdebtnon-currentliabilities+equity4.3.2Long-termDebtRatioLong4.3.2Long-termDebtRatioLeverageratioscharacterizeafirmintermsofitsrelativeamountofdebtfinancing,buttheydonotindicatethefirm’sabilitytomeetitsdebtobligations.4.3.2Long-termDebtRatioLeveInfact,thepossibilityexiststhatafirmwithahigherdebtratiocouldactuallyinastrongerpositiontoservicethefirm’sdebtduetostrongerearningsandcashflowsthanafirmwithalowerdebtratioandweakerearnings.Infact,thepossibilityexist4.3.3InterestCoverageRatioTheratiomeasurestheextenttowhichoperatingincomecandeclinebeforethefirmisunabletomeetitsannualinterestcost.4.3.3InterestCoverageRatioT4.3.3InterestCoverageRatioNotethatearningsbeforeinterestandtaxes,ratherthannetincome,isusedinthenumeratorbecauseinterestispaidwithpre-taxdollars,andthefirm’sabilitytopaycurrentinterestisnotaffectedbytaxes.4.3.3InterestCoverageRatioN4.3.4CashFlowCoverageRatio4.3.4CashFlowCoverageRatio4.4AssetManagementRatiosTheaccountsreceivableturnoverratioiscomputedbydividingnetcreditsalesbytheaverageaccountsreceivableoutstanding.4.4AssetManagementRatiosTheCreditsalesAccountsreceivableXXXSalesXXXCashXXXSalesXXXCreditsalesAccountsreceivablNetsalesNetsales=Sales-Salesreturnsandallowances-SalesdiscountNetsalesNetsales=Creditterms

n/30n/10EOM2/10，n/602/10，1/15，n/30Credittermsn/30TradeDiscountsListprice/catalogueprice-TradediscountActualprice/invoicepriceTradeDiscountsListprice/caAccountsreceivableturnoverratio=AccountsreceivableturnoverrManagersshouldanalyzethetradeoffbetweenanyincreasedsalesfromamorelenientcreditpolicyandtheassociatedcostsoflongercollectionperiodsandmoreuncollectedreceivablestodeterminewhetherchangingthefirm’screditsalespolicycouldincreaseshareholder’swealth.ManagersshouldanalyzethetrWriteoffreceivables-(1)Baddebtexpense1000Allowancefordoubtfulaccounts1000Writeoffreceivables-(1)BaddWriteoffreceivables-(2)Currentassets:Accountsreceivable$10000Less:Allowancefordoubtfulaccounts(1000)$9000Writeoffreceivables-(2)CurreWriteoffreceivables-(3)AllowancefordoubtfulaccountsAccountsreceivable--XXWriteoffreceivables-(3)Allow舉例AgePercentuncollectible0~30days2%31~60days4%61~90days10%Over90days30%舉例AgePercentuncollectible0~3

Collectionperiod=365accountsreceivableTurnoverratio

Collectionperiod=365creditsales/averageaccountsreceivable=AverageaccountsreceivableCreditsales/365Collectionperiod=4.4.2InventoryTurnoverratio4.4.2InventoryTurnoverratio舉例Accountsreceivable1000Sales1000Costofgoodssold650Merchandiseinventory650舉例Accountsreceivable1000Alow,decliningratiomaysuggestthefirmhascontinuedtobuildupinventoryinthefaceofweakeningdemandormaybecarryingandreportingoutdatedorobsoleteinventorythatcouldonlybesoldatreducedprices,ifatall.Alow,decliningratiomaysugOntheotherhand,amanageroranalystshouldchecktomakesurethatahighratiodoesnotreflectlostsalesopportunitiesbecauseofinadequateinventorylevelscausedbyproductionproblems,poorsalesforecasting,orweakcoordinationbetweensalesandproductionactivitieswithinthefirm.Ontheotherhand,amanageroInventoryprocessingperiod=

365inventoryturnoverratioThenumberofdays’salesininventory存貨周轉(zhuǎn)天數(shù)Inventoryprocessingperiod=ThThenumberofdays’salesininventory：存貨周轉(zhuǎn)天數(shù)365/inventoryturnover365÷CostofgoodssoldAverageinventoryAverageinventoryCostofgoodssold/365Thenumberofdays’salesiniAccountspayableturnoverratio=4.4.3AccountspayableturnoverratiAccountspayablepaymentperiod=4.4.3AccountspayablepaymentperioWhenafirmproducesgoodsoracquiresinventoryforthesaleand/orsellstheitemsonacreditbasis,itwillneedtohaveamplecashduringtheperiodbetweenwhenthefirmmustpayfortherawmaterials,inventoryandlaborandwhenitreceivescashfromthesalesofgoods.WhenafirmproducesgoodsorCashconversioncycle=4.4.3Cashconversioncycle=4.4.3Thelengthoftheoperatingcycleisthetimefromthepurchaseofinventorytothecollectionofcashfromthesaleofthatinventory;thisintervalisequaltothe

numberofdays’salesininventoryplustheaveragecollectionperiod.Thelengthoftheoperatingcy4.4.4AssetTurnoverRatios4.4.4AssetTurnoverRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatiosHighnetprofitmarginssuggestafirmcancontrolitscostsorhasasolidcompetitivepositionwithinitsindustrythatisnotthreatenedbycost-cuttingcompetitors.4.5ProfitabilityRatiosHighnFirmsinindustrieswithhighsalesvolumes(likeretailgrocerystores)canoperateprofitablywithrelativelylownetprofitmarginsbecausetheyexperienceahighturnoveroftheirtotalassets,whilefirmsinotherindustriesrequiremuchhighermarginstosurvive.Firmsinindustrieswithhigh4.5ProfitabilityRatios4.5ProfitabilityRatiosROAROAratiosarealsoaffectedbytheageofafirm’splantandequipment,especiallyduringperiodsofmoderatetohighinflation.ROAROAratiosarealsoaffecte4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.5ProfitabilityRatios4.6MarketValueRatiosPrice/earningsRatioMarket-to-bookValueRatio

4.6MarketValueRatiosPrice/EarningspershareEarningspershare=EarningsavailabletocommonstockholdersNumberofcommonsharesoutstandingEarningspershareEarningsper4.6MarketValueRatiosDividendYield

DividendPayout

4.6MarketValueRatiosDivide4.7UsesandLimitationsWhileratioanalysiscanprovideusefulinformationconcerningacompany’soperationsandfinancialcondition,itdoeshavelimitationsthatnecessitatecareandjudgment.4.7UsesandLimitationsWhile4.7UsesandLimitationsManylargefirmsoperatedifferentdivisionsindifferentindustries,andforsuchcompaniesitisdifficulttodevelopameaningfulsetofindustryaverages.4.7UsesandLimitationsManyl4.7UsesandLimitationsMostfirmswanttobebetterthanaverage,somerelyattainingaverageperformanceisnotnecessarilygood.4.7UsesandLimitationsMostf4.7UsesandLimitationsThus,aratioanalysisforonefirmovertime,oracomparativeanalysisoffirmsofdifferentages,mustbeinterpretedwithjudgment.4.7UsesandLimitationsThus,4.7UsesandLimitationsSeasonalfactorscanalsodistortaratioanalysis.4.7UsesandLimitationsSeason4.7UsesandLimitationsDifferentaccountingpracticescandistortcomparisons.4.7UsesandLimitationsDiffer4.7UsesandLimitationsItisdifficulttogeneralizeaboutwhetheraparticularratiois“good”or“bad”.4.7UsesandLimitationsItis4.7UsesandLimitationsAfirmmayhavesomeratiosthatlook“good”andothersthatlook“bad”,makingitdifficulttotellwhetherthecompanyis,onbalance,strongorweak.4.7UsesandLimitationsAfirm4.7UsesandLimitationsEffectiveuseoffinancialratiosrequiresthatthefinancialstatementuponwhichtheyarebasedbeaccurate.4.7UsesandLimitationsEffect4.FinancialRatioAnalysis4.1FinancialRatioAnalysis

財務(wù)比率分析4.2LiquidityRatios

流動性比率4.3DebtManagementRatios

債務(wù)管理比率4.FinancialRatioAnalysis4.14.FinancialRatioAnalysis4.4AssetManagementRatios

資產(chǎn)管理比率4.5ProfitabilityRatios

盈利比率4.6MarketValueRatios

市場價值比率4.FinancialRatioAnalysis4.44.FinancialRatioAnalysis4.7UsesandLimitationsofFinancialRatioAnalysis

財務(wù)比率分析的使用和限制4.FinancialRatioAnalysis4.7AnalyzingFinancialRatiosSomepreliminarycommentsarewarranted:1.Financialratiosarenotstandardized.AnalyzingFinancialRatiosSomeAnalyzingFinancialRatios2.Analyzingasinglefinancialratioforagivenyearmaynotbeveryuseful.AnalyzingFinancialRatios2.AAnalyzingFinancialRatios3.Someofafirm’sfinancialaccountingpracticesorchoiceswillaffectitsfinancialstatementsand,finally,itsfinancialratios.AnalyzingFinancialRatios3.SAnalyzingFinancialRatios4.Financialratiosdonotprovideanalystswithalloftheanswersaboutafirm’scondition.AnalyzingFinancialRatios4.F4.2LiquidityRatiosLiquidityratiosindicateafirm’sabilitytopayitsobligationsintheshortrun.4.2LiquidityRatiosLiquidity4.2LiquidityRatiosFinancialmanagersmustpaycloseattentiontoliquidityratiostoensuretheyreflectahighprobabilityofthefirmbeingabletopromptlyandfullypayitsbillswithoutunduestress.4.2LiquidityRatiosFinancial4.2LiquidityRatiosNetworkingcapitaltototalassetsratio=NetworkingcapitalTotalassets凈營運資本比總資產(chǎn)比率4.2LiquidityRatiosNetworkin4.2.1CurrentratioDenominator分母

Numerator分子4.2.1Currentratio4.2.1CurrentratioForexample,acurrentratioof1.5impliesthatafirmhas$1.5incurrentassetsforevery$1incurrentliabilitiesandthushas1.5timesthecurrentassets,orhasitscurrentliabilitiescovered1.5timesover.4.2.1CurrentratioForexample4.2.1CurrentratioExcessivelyhighcurrentratios,however,mayindicatedafirmmayhavetoomuchofitslong-terminvestor-suppliedcapitalinvestedinshort-termlow-earningcurrentassets.4.2.1CurrentratioExcessively4.2.1CurrentratioInaninflationaryenvironment,firmsthatuselast-in,first-out(LIFO)inventoryvaluationwilllikelyhavelowercurrentratiosthanfirmsthatusefirst-in,first-out(FIFO).4.2.1CurrentratioInaninfla4.2.1CurrentratioWithLIFOinventoryvaluation,firmsdeterminethevalueofcostofgoodssoldontheincomestatementbythecostoftheinventorymostrecentlyproduced;4.2.1CurrentratioWithLIFOi4.2.1CurrentratioExceptinsomedecliningcostindustries,inflationwilllikelycausethevalueofthis“older”inventorycarriedonthebalancesheettobelessthanthemorerecentcostofproducingthatinventory.4.2.1CurrentratioExceptins4.2.1CurrentratioThevalueofinventoryreportedonthebalancesheetisfrommorerecentperiodsandwillbebasedonmorerecent(higher)costdatathantheinventorybalanceofsimilarfirmsthatuseLIFO.4.2.1CurrentratioThevalueo4.2.1CurrentratioYet,ifafirmhasacurrentratiothatislessthanone,thesametransactionwouldleadtoalowercurrentratio.4.2.1CurrentratioYet,ifaf4.2.1CurrentratioEqualabsolutechangesinthenumeratoranddenominatormayleadtoapparentimprovementsordeteriorationinratiosthatdonotreflectrealchangesinperformance.4.2.1CurrentratioEqualabsol4.2.1CurrentratioAnalystsshouldbeawarethatafirm’smanagersmayundertakeyear-endtransactions,suchastheonedescribedabove,tomakecertainratiosappearbetterfollowingaperiodofdisappointingperformance.4.2.1CurrentratioAnalystssh4.2.1CurrentratioOneofthefirmsmayhaveasubstantialportionofitscurrentassetstiedupininventories,whiletheotherfirmmayhavelargecashandmarketablesecurities.4.2.1CurrentratioOneoftheLatterDidhewalkorswim?Thelatterseemsunlikely.LatterDidhewalkorswim?Th4.2.1CurrentratioManagersoranalystscanexamineafirm’scommon-sizebalancesheetovertimetoseerelativechangesinthecompositionofbothcurrentassetsandcurrentliabilitiesandassesschangesordifferencesinliquidity.4.2.1CurrentratioManagersor4.2.2Quickratio4.2.2Quickratio4.2.2QuickratioTherationaleforexcludinginventoryisthatitistheleastliquidofafirm’scurrentassetsandmaynotbeasreadilyavailabletomeetashort-termmaturingobligationastheothermoreliquidcurrentassets.4.2.2QuickratioTherationale4.2.2QuickratioForanyfirmcarryinganinventorybalance,thequickratiowillbelowerthanthecurrentratio.4.2.2QuickratioForanyfirmForexample,supposeafirm’scurrentratiohasbeenfairlystableandconsistentwithindustryaveragesoverthepastthreeyears.Butduringthesameperiod,thefirm’squickratiohasdeclinedandisnowbelowindustryaverages.Forexample,supposeafirm’s4.2.2QuickratioWhethertheincreaseislikelytemporaryorpermanentHowthefirmfinancestheinventoryHowtherelativeincreasesininventorywillaffectthefirm’sliquidityandoverallperformance4.2.2QuickratioWhetherthei4.2.3Cashratio4.2.3Cashratio4.2.3CashratioAnalyzingacashratio,however,couldbehelpfulforassessingafirm’sliquiditywhenthefirmneedstopaymostorallofitscurrentliabilitieswithcashinthenearterm.4.2.3CashratioAnalyzingaca4.3DebtManagementRatiosDebtmanagementratioscharacterizeafirmintermsoftherelativemixofdebtandequityfinancingandprovidemeasuresofthelong-termdebtpayingabilityofthefirm.4.3DebtManagementRatiosDebt4.3DebtManagementRatiosLeverageratios:

1224.3DebtManagementRatiosLeve4.3DebtManagementRatiosCoverageratios:

1234.3DebtManagementRatiosCove4.3.1DebtRatioCreditorpreferalowofmoderatedebtratiobecauseitprovidesmoreprotectionifthefirmexperiencesfinancialproblems.4.3.1DebtRatioCreditorprefe4.3.1DebtRatio1254.3.1DebtRatio354.3.2Long-termDebtRatioLong-termdebtratioiscomputedbydividingafirm’slong-termdebt,usuallydefinedasallnon-currentliabilities,byitstotalassets.4.3.2Long-termDebtRatioLong4.3.2Long-termDebtRatioWhencomputingthedebtratioandthelong-termdebtratio,somemanagersandanalystsusetotalcapitalinthedenominatorinplaceoftotalassets.4.3.2Long-termDebtRatioWhen4.3.2Long-termDebtRatioDebt-to-totalcapitalratio=Totalliabilitiesnon-currentliabilities+equity4.3.2Long-termDebtRatioDebt4.3.2Long-termDebtRatioLong-termdebttototalcapitalratio=Long-termdebtnon-currentliabilities+equity4.3.2Long-termDebtRatioLong4.3.2Long-termDebtRatioLeverageratioscharacterizeafirmintermsofitsrelativeamountofdebtfinancing,buttheydonotindicatethefirm’sabilitytomeetitsdebtobligations.4.3.2Long-termDebtRatioLeveInfact,thepossibilityexiststhatafirmwithahigherdebtratiocouldactuallyinastrongerpositiontoservicethefirm’sdebtduetostrongerearningsandcashflowsthanafirmwithalowerdebtratioandweakerearnings.Infact,thepossibilityexist4.3.3InterestCoverageRatioTheratiomeasurestheextenttowhichoperatingincomecandeclinebeforethefirmisunabletomeetitsannualinterestcost.4.3.3InterestCoverageRatioT4.3.3InterestCoverageRatioNotethatearningsbeforeinterestandtaxes,ratherthannetincome,isusedinthenumeratorbecauseinterestispaidwithpre-taxdollars,andthefirm’sabilitytopaycurrentinterestisnotaffectedbytaxes.4.3.3InterestCoverageRatioN4.3.4CashFlowCoverageRatio4.3.4CashFlowCoverageRatio4.4AssetManagementRatiosTheaccountsreceivableturnoverratioiscomputedbydividingnetcreditsalesbytheaverageaccountsreceivableoutstanding.4.4AssetManagementRatiosTheCreditsalesAccountsreceivableXXXSalesXXXCashXXXSalesXXXCreditsalesAccountsreceivablNetsalesNetsales=Sales-Salesreturnsandallowances-SalesdiscountNetsalesNetsales=Creditterms

n/30n/10EOM2/10，n/602/10，1/15，n/30Credittermsn/30TradeDiscountsListprice/catalogueprice-TradediscountActualprice/invoicepriceTradeDiscountsListprice/caAccountsreceivableturnoverratio=AccountsreceivableturnoverrManagersshouldanalyzethetradeoffbetweenanyincreasedsalesfromamorelenientcreditpolicyandtheassociatedcostsoflongercollectionperiodsandmoreuncollectedreceivablestodeterminewhetherchangingthefirm’screditsalespolicycouldincreaseshareholder’swealth.ManagersshouldanalyzethetrWriteoffreceivables-(1)Baddebtexpense1000Allowancefordoubtfulaccounts1000Writeoffreceivables-(1)BaddWriteoffreceivables-(2)Currentassets:Accountsreceivable$10000Less:Allowancefordoubtfulaccounts(1000)$9000Writeoffreceivables-(2)CurreWriteoffreceivables-(3)AllowancefordoubtfulaccountsAccountsreceivable--XXWriteoffreceivables-(3)Allow舉例AgePercentuncollectible0~30days2%31~60days4%61~90days10%Over90days30%舉例AgePercentuncollectible0~3

Collectionperiod=365accountsreceivableTurnoverratio

Collectionperiod=365creditsales/averageaccountsreceivable=AverageaccountsreceivableCreditsales/365Collectionperiod=4.4.2InventoryTurnoverratio4.4.2InventoryTurnoverratio舉例Accountsreceivable1000Sales1000Costofgoodssold650Merchandiseinventory650舉例Accountsreceivable1000Alow,decliningratiomaysuggestthefirmhascontinuedtobuildupinventoryinthefaceofweakeningdemandormaybecarryingandreportingoutdatedorobsoleteinventorythatcouldonlybesoldatreducedprices,ifatall.Alow,decliningratiomaysugOntheotherhand,amanageroranalystshouldchecktomakesurethatahighratiodoesnotreflectlostsalesopportunitiesbecauseofinadequateinventorylevelscausedbyproductionproblems,poorsalesforecasting,orweakcoordinationbetweensalesandproductionactivitieswithinthefirm.Ontheotherhand,amanageroInventoryprocessingperiod=

365inventoryturnoverratioThenumberofdays’salesininventory存貨周轉(zhuǎn)天數(shù)Inventoryprocessingperiod=ThThenumberofdays’salesininventory：存貨周轉(zhuǎn)天數(shù)365/inventoryturnover365÷CostofgoodssoldAverageinventoryAverageinventoryCostofgoodssold/365Thenumberofdays’salesiniAccountspayableturnoverratio=4.4.3AccountspayableturnoverratiAccountspayablepaymentperiod=4.4.3AccountspayablepaymentperioWhenafirmproducesgoodsoracquiresinventoryforthesaleand/orsellstheitemsonacreditbasis,itwillneedtohaveamplecashduringtheperiodbetweenwhenthefirmmustpayfortherawmaterials,inventoryandlaborandwhenitreceivescashfromthesalesofgoods.WhenafirmproducesgoodsorCashconversioncycle=4.4.3Cashconversioncycle=4.4.3Thelengthoftheoperatingcycleisthetimefromthepurchaseofinventorytothecollectionofcashfromthesaleofthatinventory;thisintervalisequaltothe

numberofdays’salesininventoryplustheaverageco