財務(wù)報表分析英文ppt課件

1、6-1 Pearson Education Limited 2019Fundamentals of Financial Management, 12/eCreated by: Gregory A. Kuhlemeyer, Ph.D.Carroll College, Waukesha, WI6-2uUnderstand the purpose of basic financial statements and their contents. uExplain why financial statement analysis is important to the firm and to outs

2、ide suppliers of capital. uDefine, calculate, and categorize (according to liquidity, financial leverage, coverage, activity, and profitability) the major financial ratios and understand what they can tell us about the firm. uDefine, calculate, and discuss a firms operating cycle and cash cycle.uUse

3、 ratios to analyze a firms health and then recommend reasonable alternative courses of action to improve the health of the firm. uAnalyze a firms return on investment (i.e., “earning power”) and return on equity using a DuPont approach. uUnderstand the limitations of financial ratio analysis. uUse t

4、rend analysis, common-size analysis, and index analysis to gain additional insights into a firms performance.6-3uFinancial StatementsuA Possible Framework for AnalysisuBalance Sheet RatiosuIncome Statement and Income Statement/Balance Sheet RatiosuTrend AnalysisuCommon-Size and Index Analysis6-46-56

5、-66-7a. How the firm stands on a specific date.b. What BW owned.c. Amounts owed by customers.d. Future expense items already paid.e. Cash/likely convertible to cash within 1 year.f. Original amount paid.g. Acc. deductions for wear and tear. Cash and C.E. $ 90 Acct. Rec.c 394 Inventories 696 Prepaid

6、Exp d 5 Accum Tax Prepay 10 Current Assetse $1,195 Fixed Assets (Cost)f 1030 Less: Acc. Depr. g (329) Net Fix. Assets $ 701 Investment, LT 50 Other Assets, LT 223 Total Assets b $2,1696-8a. Note, Assets = Liabilities + Equity.b. What BW owed and ownership position.c. Owed to suppliers for goods and

7、services.d. Unpaid wages, salaries, etc.e. Debts payable 1 year.g. Original investment. h. Earnings reinvested.Notes Payable $ 290 Acct. Payablec 94 Accrued Taxes d 16 Other Accrued Liab. d 100 Current Liab. e $ 500 Long-Term Debt f530 Shareholders Equity Com. Stock ($1 par) g200 Add Pd in Capital g

8、729 Retained Earnings h 210 Total Equity $1,139 Total Liab/Equitya,b $2,1696-9a. Measures profitability over a time period.b. Received, or receivable, from customers.c. Sales comm., adv., officers salaries, etc.d. Operating income.e. Cost of borrowed funds.f. Taxable income.g. Amount earned for shar

9、eholders. Net Sales $ 2,211 Cost of Goods Sold b 1,599Gross Profit $ 612 SG&A Expenses c 402 EBITd $ 210 Interest Expensee 59 EBT f $ 151 Income Taxes 60 EATg $ 91 Cash Dividends 38 Increase in RE $ 536-106-11Health of a FirmFinancial Ratios1. Individually2. Over time3. In combination4. In compa

10、rison1. Analysis of the funds needs of the firm.6-121. Analysis of the funds needs of the firm.2. Analysis of the financial condition and profitability of the firm.6-13A Financial Manager must consider all three jointly when determining the financing needs of the firm.6-146-15A Financial Ratio is an

11、 index that relates two accounting numbers and is obtained by dividing one number by the other.6-16Examples:Risk Management AssociationDun & BradstreetAlmanac of Business and Industrial Financial RatiosThis involves comparing the ratios of one firm with those of similar firms or with industry av

12、erages.Similarity is important as one should compare “apples to apples.”6-17Shows a firms ability to cover its current liabilities with its current assets.Balance Sheet RatiosLiquidity Ratios= 2.396-18BW Industry2.392.152.262.091.912.01Year201920192019Ratio is stronger than the industry average.6-19

13、Shows a firms ability to meet current liabilities with its most liquid assets.Balance Sheet RatiosLiquidity Ratios= 1.006-20BW Industry1.001.251.041.231.111.25Year201920192019Ratio is weaker than the industry average.6-21uStrong current ratio and weak acid-test ratio indicates a potential problem in

14、 the inventories account.uNote that this industry has a relatively high level of inventories.6-226-236-24uThe current ratio for the industry has been rising slowly at the same time the acid-test ratio has been relatively stable.uThis indicates that inventories are a significant problem for BW.uThe c

15、urrent ratio for BW has been rising at the same time the acid-test ratio has been declining.6-25Shows the extent to which the firm is financed by debt.Balance Sheet RatiosFinancial LeverageRatios= .906-26BW Industry .90 .90 .88 .90 .81 .89Year201920192019BW has average debt utilizationrelative to th

16、e industry average.6-27Shows the percentage of the firms assets that are supported by debt financing.Balance Sheet RatiosFinancial LeverageRatios= .476-28BW Industry .47 .47 .47 .47 .45 .47Year201920192019BW has average debt utilizationrelative to the industry average.6-29Shows the relative importan

17、ce of long-term debt to the long-term financing of the firm.Balance Sheet RatiosFinancial LeverageRatios= .32(i.e., LT-Debt + Equity)6-30BW Industry .32 .30 .32 .31 .37 .32Year201920192019BW has average long-term debt utilizationrelative to the industry average.6-31Indicates a firms ability to cover

18、 interest charges.Income StatementRatiosCoverage Ratios= 3.566-32 BW Industry 3.565.19 4.355.0210.304.66Year201920192019BW has below average interest coveragerelative to the industry average.6-336-34uThis indicates that low earnings (EBIT) may be a potential problem for BW.uNote, we know that debt l

19、evels are in line with the industry averages.uThe interest coverage ratio for BW has been falling since 2019. It has been below industry averages for the past two years.6-35Indicates quality of receivables and how successful the firm is in its collections.Income Statement /Balance SheetRatiosActivit

20、y Ratios= 5.61(Assume all sales are credit sales.)6-36Average number of days that receivables are outstanding.(or RT in days)Income Statement /Balance SheetRatiosActivity Ratios= 65 days6-37BW Industry65.065.771.166.383.669.2Year201920192019BW has improved the average collection period to that of th

21、e industry average.6-38Indicates the promptness of payment to suppliers by the firm.Income Statement /Balance SheetRatiosActivity Ratios= 16.5(Assume annual credit purchases = $1,551.)6-39Average number of days that payables are outstanding. Income Statement /Balance SheetRatiosActivity Ratios= 22.1

22、 days6-40BW Industry22.146.725.451.143.548.5Year201920192019BW has improved the PT in Days.Is this good?6-41Indicates the effectiveness of the inventory management practices of the firm. Income Statement /Balance SheetRatiosActivity Ratios= 2.306-42BW Industry2.303.452.443.762.643.69Year201920192019

23、BW has a very poor inventory turnover ratio.6-436-44Indicates the overall effectiveness of the firm in utilizing its assets to generate sales. Income Statement /Balance SheetRatiosActivity Ratios= 1.026-45BW Industry1.021.171.031.141.011.13Year201920192019BW has a weak total asset turnover ratio.Why

24、 is this ratio considered weak?6-46Indicates the efficiency of operations and firm pricing policies. Income Statement /Balance SheetRatiosProfitability Ratios= .2776-47BW Industry27.7%31.1%28.730.831.327.6Year201920192019BW has a weak Gross Profit Margin.6-486-49Indicates the firms profitability aft

25、er taking account of all expenses and income taxes. Income Statement /Balance SheetRatiosProfitability Ratios= .0416-50BW Industry4.1%8.2%4.98.19.07.6Year201920192019BW has a poor Net Profit Margin.6-516-52Indicates the profitability on the assets of the firm (after all expenses and taxes). Income S

26、tatement /Balance SheetRatiosProfitability Ratios= .0426-53BW Industry4.2% 9.8%5.0 9.19.110.8Year201920192019BW has a poor Return on Investment.6-546-55Indicates the profitability to the shareholders of the firm (after all expenses and taxes). Income Statement /Balance SheetRatiosProfitability Ratios= .086-56 BW Industry 8.0%17.9% 9.417.216.620.4Year201920192019BW has a poor Return on Equity.6-576-586-59Total AssetsShareholders Equity6-60uThe profitability ratios for BW ha