Tài chính doanh nghiệp - Chapter 19: Financial statement analysis

Chapter 19Financial Statement AnalysisPurpose Tools UsedStatementsRatio AnalysisLimitationsOverviewBalance SheetCommon SizedTrend or IndexedIncome StatementCommon SizedTrend or IndexedStatement of Cash FlowsFinancial StatementsPurpose of Ratio AnalysisUsesTrend analysisComparative analysisCombinationUse by External AnalystsImportant information for investment communityImportant for credit marketsRatio AnalysisLiquidity RatiosActivity or Mgmt Efficiency RatiosLeverage RatiosProfitability RatiosMarket Price RatiosType of Financial RatiosCurrent Ratio: Current Assets Current LiabilitiesQuick Ratio: Current Assets - Inventory Current LiabilitiesLiquidity RatiosInventory Turnover Sales or Cost of Goods Sold Inventory Total Asset Turnover Sales Total AssetsActivity or Management Efficiency RatiosAverage Collection Period Accounts Receivable Sales Per Day Days to Sell Inventory Inventory Sales Per DayActivity or Management Efficiency RatiosTimes Interest Earned Earnings Before Int. & Taxes Interest ExpenseFixed Charge Coverage RatiosLease PaymentsPrincipal RepaymentsPreferred DividendsLeverage RatiosDebt to Assets Long Term Debt AssetsDebt to Equity Long Term Debt Shareholders EquityLeverage RatiosNet Profit Margin % Net Income SalesReturn on Assets Net Income Total AssetsProfitability RatiosReturn on Equity Net Income Common EquityOperating Margin After Depr. Operating Profit SalesProfitability RatiosPrice to Earnings Market Price of Stock EarningsMarket-to-Book-Value Market Price of Stock Book Value Per ShareMarket Price RatiosROE = Net ProfitPretax ProfitxPretax Profit EBITxEBITSalesSalesAssetsxxAssetsEquity (1) x (2) x (3) x (4) x (5) x Margin x Turnover x Leverage TaxBurdenInterestBurdenDecomposition of ROExEconomic Value AddedDifference between return on assets (ROA) and the opportunity cost of capital (k)EVA = above difference time the invested capitalEVA can be positive or negative for firms that have positive earningsAccounting DifferencesInventory ValuationDepreciationInflationInternational Accounting ConventionsComparability ProblemsInternational Accounting DifferencesReserves – many other countries allow more flexibility in use of reserves.Depreciation – US allows separate tax and reporting presentations.Intangibles – treatment varies widely.