杜邦分析法 英文講義ppt課件

1、1.2What is ROE?The starting point for a systematic analysis of a firms performance is its return on equity(ROE).defined as ROE=Net income/ Total equityROE is a comprehensive indicator of a firms performance because it provides an indication of how well managers are employing the funds invested by th

2、e firms shareholders to generate returns.3About ROEOn average over long periods,large publicly traded firms in the U.S. generate ROEs in the range of 11 to 13 percent.In the long run, the value of the firms equity is determined by the relationship between its ROE and its cost of equity capital.That

3、is, those firms that are expected over the long run to generate ROEs in excess of the cost of equity capital should have market values in excess of book value,and vice versa(反之亦然).4the Du Pont IdentityAn expression that breaks ROE down into three parts : Profit margin,Total asset turnover and Financ

4、ial leverage(equity multiplier). it is also known as Dupont Analysis.The method is first used by a firm named Dupont which is a large chemical company.5the Du Pont IdentityDupont Analysis is to analysis enterprises financial position by using the relationship between several financial ratios.Its bas

5、ic idea is to divide ROE into a number of financial ratios product, which is help to further analysis the enterprises business performance.6Deriving the Du Pont IdentityROE = NI / TEMultiply by 1 and then rearrangeROE = (NI / TE) (TA / TA)ROE = (NI / TA) (TA / TE) = ROA * EMMultiply by 1 again and t

6、hen rearrangeROE = (NI / TA) (TA / TE) (Sales / Sales)ROE = (NI / Sales) (Sales / TA) (TA / TE)ROE = PM * TAT * EM7the Du Pont IdentityROE = ROA*EM =PM * TAT * EM =Profit margin * Total asset turnover * Equity multiplier =Net income/ Sales * Sales/ Total assets * Total assets/ Total equity8Even thou

7、gh the above approach is popular used to decompose(分解) a firms ROE,it has several limitations.In the computation of ROA,the denominator(分母) includes the assets claimed by all providers of capital to the firm,but the numerator（分子）includes only the earnings avaliable to equity holders.The assets thems

8、elves includes both operating assets and financial assets such as cash and short-term investments.9Further,net income includes income from operating activities as well as interest income and expenses, which are consequences of fianancing decisions. Often it is useful to distinguish between these two

9、 drivers of performance.10Finally, the financial leverage ratio used above does not recongnize the fact that a firms cash and short-term investments are in essence negative debt(資本) because they can be used to pay down the debt on the companys balance sheet.These issues are addressed by an alternati

10、ve approach to decomposing ROE.that is ROE=Operating ROA+Spread *Net financial leverage11Using the Du Pont Identity Profit margin is a measure of the firms operating efficiency how well does it control costs Total asset turnover is a measure of the firms asset use efficiency how well does it manage

11、its assets Equity multiplier is a measure of the firms financial leverage12Payout and Retention RatiosDividend payout ratio = Cash dividends / Net income0.86 / 2.17 = 0.3963 or 39.63%A firms dividends payout ratio is a measure of its dividend policy. Firms pay dividends for several reasons. They pro

12、vide a way to return to shareholders any cash generated in excess of the firms operating and investment needs.13Payout and Retention RatiosWhen there are information asymmetries (不對稱) between a firms managers and its shareholders, dividend payments can serve as a single to shareholders about manager

13、s expectation of the firms future prospects. Firms may also pay dividends to attract a certain type of shareholder base.14Payout and Retention RatiosRetention ratio = Additions to retained earnings / Net income = 1 payout ratio1.31 / 2.17 = 0.6037 = 60.37%Or 1 - 0.3963 =0 .6037 = 60.37%Retained rati

14、o (Plowback ratio)used to measure the current in the total net income what is the percentage retained in the enterprise for development, it embodies(體現(xiàn)) the enterprise management policies.15Determinants of GrowthProfit margin operating efficiencyTotal asset turnover asset use efficiencyFinancial lev

15、erage choice of optimal debt ratioDividend policy choice of how much to pay to shareholders versus reinvesting in the firm16Table 3.617Sustainable growth rateSuatainable growth rate is the rate at which a firm can grow while keeping its profitability and financial policies unchanged. A firms return

16、on equity and its dividend payout policy determine the pool of funds avaliable for growth.Of course the firm can grow at a rate different from its sustainable growth rate if its profitability, payout policy,or financial leverage changes.Therefore,the sustainable growth rate provides a benchmark agai

17、nst which a firms growth plans can be evaluated.18Why Evaluate Financial Statements?Internal uses Performance evaluation compensation and comparison between divisions（部門） Planning for the future guide in estimating future cash flowsExternal uses Creditors Suppliers Customers Stockholders19To evaluat

18、e fianancial statement can provide useful accounting information.Accounting information can help investors and creditors to make the reasonable decision.In a market, enterprises capital mainly from shareholders and creditors,whether its now or potential investors and creditors.In order to make a rea

19、sonable investment and credit decisions, must have certain financial information.20Accounting information can assess and predict the future cash flow.Enterprise inside and outside users demand of information is mainly to help future economic decisions, predict the future management of the enterprise

20、 activities.The major content（內容） focused on financial projections，such as the cash flow,debt paying ability and so on.21BenchmarkingRatios are not very helpful by themselves; they need to be compared to somethingTime-Trend Analysis Used to see how the firms performance is changing through time Internal and external usesPeer Group Analysis - Compare to similar companies or within industry -SIC and NAICS codes22Peer Group AnalysisMany such codes exsit-NAICS,SIC codes,etc. And they are widely used to classify businesses,industries and product categor