完整word版财务报表分析英文版
财务分析报告英文版
The short term liquid ratio has retained stable at around 1.5, indicating good short term liquid management and debt servicing ability
Intangible Assets
An evaluation of these assets as trademarks, patents, and goodwill, their value, and the impact they have on the company's operations
A breakdown of inventory by category, its value, and the carrying cost The analysis also includes an assessment of inventory turnover rates and objectivity
To assist management in making informed decisions about the future direction of the company
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Overview of Financial Performance
Revenue Analysis
The company's revenue is seasonal, with the fourth quarter being the peak period due to holiday spending and end of year sales
财务报告分析双语(3篇)
第1篇Executive SummaryThis analysis aims to provide a comprehensive overview of the financial performance of XYZ Corporation over the past fiscal year. By examining the financial statements, including the balance sheet, income statement, and cash flow statement, we can gain insights into the company's profitability, liquidity, solvency, and overall financial health. This report will be presented in both English and Chinese, with key findings and conclusions translated for clarity.I. IntroductionXYZ Corporation, a leading company in the technology industry, has released its financial report for the fiscal year ending December 31, 2022. The report provides a detailed account of the company's financial activities, performance, and position during the period. This analysis will focus on the key financial indicators and ratios, highlighting the company's strengths and weaknesses, and offering recommendations for improvement.II. Financial Statements AnalysisA. Balance SheetThe balance sheet provides a snapshot of the company's financialposition at a specific point in time. The following analysis will focus on the key components of the balance sheet:1. Assets: XYZ Corporation's total assets increased by 15% from the previous fiscal year, driven by a 20% growth in current assets and a 10% increase in non-current assets. This indicates that the company has been successful in expanding its asset base.2. Liabilities: The total liabilities of XYZ Corporation also increased by 12%, with current liabilities growing by 15% and non-currentliabilities by 10%. This suggests that the company has taken on additional debt to finance its growth.3. Equity: The equity of XYZ Corporation increased by 18% over thefiscal year, reflecting the company's profitability and reinvestment in the business.B. Income StatementThe income statement shows the company's revenue, expenses, and net income over a specific period. The following points highlight the key aspects of the income statement:1. Revenue: XYZ Corporation's revenue increased by 20% from the previous fiscal year, driven by strong sales in the technology sector.2. Expenses: The company's expenses increased by 15%, with cost of goods sold (COGS) increasing by 18% and selling, general, and administrative expenses (SG&A) increasing by 12%. This indicates that the company has been able to control its cost of goods sold but has experienced some increases in SG&A expenses.3. Net Income: XYZ Corporation's net income increased by 25% over the fiscal year, reflecting the company's strong operational performance.C. Cash Flow StatementThe cash flow statement provides insights into the company's cashinflows and outflows. The following analysis focuses on the key components of the cash flow statement:1. Operating Cash Flow: XYZ Corporation's operating cash flow increased by 30% over the fiscal year, indicating strong cash-generating capabilities.2. Investing Cash Flow: The company's investing cash flow decreased by 5%, primarily due to lower capital expenditures.3. Financing Cash Flow: Financing cash flow increased by 20%, driven by higher dividends paid to shareholders and an increase in long-term debt.III. Financial Ratios AnalysisA. Liquidity Ratios1. Current Ratio: XYZ Corporation's current ratio increased from 1.5 to 1.8, indicating improved short-term liquidity.2. Quick Ratio: The quick ratio improved from 1.2 to 1.5, suggestingthat the company has a strong ability to meet its short-term obligations.B. Solvency Ratios1. Debt-to-Equity Ratio: The debt-to-equity ratio decreased from 1.2 to 1.0, indicating a more conservative financial structure.2. Interest Coverage Ratio: The interest coverage ratio improved from 5.0 to 6.0, reflecting the company's ability to cover its interest expenses.C. Profitability Ratios1. Gross Profit Margin: The gross profit margin remained stable at 40%, indicating efficient cost management.2. Net Profit Margin: The net profit margin increased from 15% to 20%, reflecting the company's improved profitability.IV. ConclusionXYZ Corporation has demonstrated strong financial performance over the past fiscal year, with significant growth in revenue, net income, and operating cash flow. The company's liquidity and solvency ratios are also healthy, indicating a strong financial position. However, there are areas of concern, such as the increase in SG&A expenses and the need to manage long-term debt.V. Recommendations1. Cost Control: XYZ Corporation should focus on managing SG&A expenses to improve profitability.2. Debt Management: The company should consider strategies to manage long-term debt, such as refinancing or paying down existing debt.3. Investment in Research and Development: Investing in research and development can help the company stay competitive in the technology industry.VI. 中文摘要本报告旨在全面分析XYZ公司过去一个财年的财务表现。
英文版财务报告分析(3篇)
第1篇Executive SummaryThis report provides a comprehensive analysis of XYZ Corporation's financial statements for the fiscal year ending December 31, 2022. The analysis focuses on key financial metrics, liquidity, profitability, solvency, and investment activities. The report aims to provide insights into the financial health and performance of XYZ Corporation, highlighting its strengths and areas requiring improvement.IntroductionXYZ Corporation is a publicly traded company operating in the technology sector. The company specializes in the development and manufacturing of cutting-edge electronics and software solutions. The financial reportfor the fiscal year 2022 provides a snapshot of the company's financial performance during the period.Liquidity AnalysisCurrent RatioThe current ratio is a measure of a company's ability to meet its short-term obligations. XYZ Corporation's current ratio for the fiscal year 2022 was 2.5, which indicates that the company has $2.50 in current assets for every $1 of current liabilities. This ratio is well above the industry average, suggesting that XYZ Corporation has a strong liquidity position.Quick RatioThe quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations without relying on the sale of inventory. XYZ Corporation's quick ratio for the fiscal year 2022 was 1.8. This ratio is also above the industry average, indicating that the company can cover its current liabilities without liquidating inventory.Working CapitalWorking capital is the difference between a company's current assets and current liabilities. XYZ Corporation's working capital for the fiscal year 2022 was $50 million, which is a significant improvement over the previous year. This increase in working capital reflects the company's strong liquidity position and ability to fund its operations.Profitability AnalysisGross MarginGross margin is a measure of a company's profitability, calculated as the percentage of revenue remaining after deducting the cost of goods sold. XYZ Corporation's gross margin for the fiscal year 2022 was 35%, which is slightly lower than the industry average. This decrease in gross margin can be attributed to increased raw material costs and higher research and development expenses.Net MarginNet margin is a measure of a company's overall profitability, calculated as the percentage of revenue remaining after all expenses, including taxes, are deducted. XYZ Corporation's net margin for the fiscal year 2022 was 15%, which is in line with the industry average. The company's net margin has remained stable over the past few years, indicating a consistent level of profitability.Return on Assets (ROA)Return on assets is a measure of how efficiently a company uses its assets to generate earnings. XYZ Corporation's ROA for the fiscal year 2022 was 8%, which is slightly lower than the industry average. This indicates that the company could potentially improve its assetutilization to enhance profitability.Solvency AnalysisDebt-to-Equity RatioThe debt-to-equity ratio measures a company's financial leverage and its ability to meet long-term obligations. XYZ Corporation's debt-to-equityratio for the fiscal year 2022 was 1.2, which is slightly below the industry average. This ratio suggests that the company has a moderate level of financial leverage and is in a good position to meet its long-term obligations.Interest Coverage RatioThe interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. XYZ Corporation's interest coverage ratio for the fiscal year 2022 was 4.5, which is well above the industry average. This indicates that the company has a strong ability to cover its interest expenses and is not at risk of defaulting on its debt.Investment ActivitiesCapital Expenditures (CapEx)Capital expenditures represent the investments made by a company in its long-term assets. XYZ Corporation's capital expenditures for the fiscal year 2022 were $100 million, which was a significant increase over the previous year. This increase in CapEx was primarily driven by investments in new manufacturing facilities and research and development projects.Dividends PaidDividends paid are the distributions made to shareholders from a company's earnings. XYZ Corporation paid $30 million in dividends to its shareholders during the fiscal year 2022. This amount represents a 10% increase over the previous year, reflecting the company's commitment to returning value to its shareholders.ConclusionXYZ Corporation's financial report for the fiscal year 2022 indicates a strong liquidity position, stable profitability, and moderate financial leverage. The company has made significant investments in its long-term assets, which should contribute to its future growth and profitability. However, the decrease in gross margin and the need to improve assetutilization suggest that there are areas requiring attention and potential improvement.Recommendations1. XYZ Corporation should continue to monitor its cost of goods sold and explore opportunities to reduce expenses.2. The company should focus on improving its asset utilization to enhance its return on assets.3. XYZ Corporation should maintain its strong liquidity position to ensure it can meet its short-term and long-term obligations.4. The company should continue to invest in research and development to maintain its competitive edge in the technology sector.By addressing these recommendations, XYZ Corporation can further strengthen its financial position and achieve sustainable growth in the future.第2篇Executive SummaryThis analysis delves into the financial performance of XYZ Corporation over the past fiscal year. By examining key financial statements, we aim to provide a comprehensive overview of the company's profitability, liquidity, solvency, and operational efficiency. This report will also highlight the major trends and challenges faced by the company, along with recommendations for improvement.IntroductionXYZ Corporation, a leading player in the [industry sector], has been operating in the market for [number of years]. The company has a diverse product portfolio and operates in [number of countries]. This analysis focuses on the financial statements for the fiscal year ended [financial year end date].1. Income Statement Analysis1.1 Revenue AnalysisThe total revenue for XYZ Corporation for the fiscal year ended [financial year end date] was [amount], an increase of [percentage] compared to the previous year. The revenue growth can be attributed to the expansion of the product line, successful marketing campaigns, and increased market share.1.2 Cost of Goods Sold (COGS) AnalysisThe COGS for XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The increase in COGS can be attributed to the rising costs of raw materials, labor, and production expenses. However, the COGS as a percentage of revenue remained stable at [percentage], indicating that the company has managed to control its cost structure.1.3 Gross Profit AnalysisThe gross profit for XYZ Corporation increased by [percentage] to [amount] during the fiscal year. This can be attributed to the revenue growth and effective cost management. The gross profit margin remained at [percentage], which is in line with industry averages.1.4 Operating Expenses AnalysisOperating expenses for XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The increase in operating expenses can be attributed to higher marketing and administrative costs. However, the operating expenses as a percentage of revenue remained stable at [percentage], indicating that the company has managed to control its cost structure.1.5 Net Profit AnalysisThe net profit for XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The company's net profit margin remained at [percentage], which is in line with industry averages.2. Balance Sheet Analysis2.1 Asset AnalysisThe total assets of XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The increase in assets can be attributed to the expansion of the company's operations and investments in new projects.2.2 Liability AnalysisThe total liabilities of XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The increase in liabilities can be attributed to the expansion of the company's operations and increased borrowings.2.3 Equity AnalysisThe total equity of XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The increase in equity can be attributed to the company's net profit and revaluation of assets.3. Cash Flow Statement Analysis3.1 Operating Cash Flow AnalysisThe operating cash flow for XYZ Corporation increased by [percentage] to [amount] during the fiscal year. This can be attributed to the increase in net profit and effective management of working capital.3.2 Investing Cash Flow AnalysisThe investing cash flow for XYZ Corporation decreased by [percentage] to [amount] during the fiscal year. The decrease in investing cash flow can be attributed to the reduced capital expenditure on new projects.3.3 Financing Cash Flow AnalysisThe financing cash flow for XYZ Corporation increased by [percentage] to [amount] during the fiscal year. The increase in financing cash flow can be attributed to the issuance of new shares and repayment of long-term debt.4. Key Ratios Analysis4.1 Profitability Ratios- Gross Profit Margin: [percentage]- Net Profit Margin: [percentage]- Return on Assets (ROA): [percentage]- Return on Equity (ROE): [percentage]4.2 Liquidity Ratios- Current Ratio: [number]- Quick Ratio: [number]4.3 Solvency Ratios- Debt-to-Equity Ratio: [number]- Interest Coverage Ratio: [number]5. Conclusion and RecommendationsXYZ Corporation has demonstrated strong financial performance over the past fiscal year, with revenue and net profit increasing significantly. However, the company faces several challenges, including rising costs, increased competition, and economic uncertainties.Recommendations:- Focus on cost optimization to improve profitability.- Invest in research and development to enhance product offerings.- Strengthen marketing strategies to maintain market share.- Diversify revenue streams to reduce dependency on a single product or market.- Monitor economic indicators and adjust strategies accordingly.By implementing these recommendations, XYZ Corporation can continue to grow and remain competitive in the market.Appendix- Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement)- Key Ratios Calculation- Graphs and Charts illustrating financial trends[Note: This report is a sample and should be customized with actual data and company-specific details.]第3篇IntroductionThe financial report analysis is an essential tool for investors, creditors, and other stakeholders to evaluate the financial performance and stability of a company. This analysis involves examining the financial statements, including the balance sheet, income statement, and cash flow statement, to gain insights into the company's profitability, liquidity, solvency, and efficiency. This paper aims to provide a comprehensive analysis of a fictional company's financial report, focusing on key financial ratios and metrics to assess its overall financial health.1. Overview of the CompanyCompany XYZ is a publicly-traded multinational corporation specializing in the manufacturing and distribution of consumer goods. The company operates in various regions, with a diverse product portfolio that includes electronics, home appliances, and personal care products. Over the past few years, Company XYZ has experienced significant growth, expanding its market share and generating substantial revenue.2. Financial Statements Analysis2.1 Balance SheetThe balance sheet provides a snapshot of the company's financialposition at a specific point in time. The key components of the balance sheet include assets, liabilities, and shareholders' equity.a. AssetsCompany XYZ's assets are categorized into current assets and non-current assets. Current assets include cash, accounts receivable, inventory, and other liquid assets that can be converted into cash within one year.Non-current assets include property, plant, and equipment, intangible assets, and long-term investments.The analysis of Company XYZ's balance sheet reveals that the company has a strong current asset position, with a current ratio of 2.5. This indicates that the company has sufficient liquidity to meet its short-term obligations. Additionally, the company's inventory turnover ratioof 5.2 suggests efficient inventory management and a healthy level of inventory turnover.b. LiabilitiesLiabilities are classified as current liabilities and long-term liabilities. Current liabilities include accounts payable, short-term debt, and other obligations due within one year. Long-term liabilities encompass long-term debt and deferred tax liabilities.The company's current ratio of 2.5 also reflects a healthy level of current liabilities, which are primarily composed of accounts payableand short-term debt. This indicates that the company has a manageable level of short-term debt and is able to cover its obligations with its current assets.c. Shareholders' EquityShareholders' equity represents the residual interest in the assets of the company after deducting liabilities. It is composed of common stock, additional paid-in capital, retained earnings, and other comprehensive income.Company XYZ's shareholders' equity has grown significantly over the years, reflecting the company's profitability and reinvestment of earnings. The company has also issued additional shares to raise capital, which has contributed to the increase in shareholders' equity.2.2 Income StatementThe income statement provides information about the company's revenues, expenses, and net income over a specific period. The key components of the income statement include sales, cost of goods sold, operating expenses, and net income.a. SalesCompany XYZ has experienced consistent sales growth, with a compound annual growth rate (CAGR) of 7% over the past five years. This growth can be attributed to the company's expanding market share, new product launches, and effective marketing strategies.b. Cost of Goods Sold (COGS)The COGS represents the direct costs associated with the production of goods sold by the company. The analysis of Company XYZ's COGS reveals that it has been decreasing over the years, reflecting improved production efficiency and cost control measures.c. Operating ExpensesOperating expenses include selling, general, and administrative expenses (SG&A) and research and development (R&D) expenses. Company XYZ has successfully managed its operating expenses, with a trend of decreasing SG&A expenses and stable R&D expenses.d. Net IncomeThe net income is the final result of the income statement and represents the company's profit after all expenses have been deducted from revenues. Company XYZ has demonstrated strong profitability, with a net income margin of 10% over the past five years.2.3 Cash Flow StatementThe cash flow statement provides information about the company's cash inflows and outflows from operating, investing, and financing activities.a. Operating Cash FlowCompany XYZ has generated positive operating cash flow over the years, which is essential for maintaining liquidity and funding growth initiatives. The company's operating cash flow margin has remained stable, indicating consistent profitability.b. Investing Cash FlowThe investing cash flow represents the company's cash flows from the purchase and sale of long-term assets, such as property, plant, and equipment, and investments. Company XYZ has invested in new manufacturing facilities and acquired other companies to expand its market presence.c. Financing Cash FlowThe financing cash flow includes cash flows from the issuance and repayment of debt, as well as equity financing. Company XYZ has raised capital through the issuance of new shares and long-term debt to fund its expansion plans.3. Financial Ratios and Metrics3.1 Profitability Ratiosa. Return on Assets (ROA)ROA measures the company's ability to generate profit from its assets. Company XYZ has a ROA of 5%, indicating that it is generating a reasonable return on its assets.b. Return on Equity (ROE)ROE measures the company's profitability from the perspective of its shareholders. Company XYZ has a ROE of 15%, reflecting its strong profitability and efficient use of shareholders' equity.3.2 Liquidity Ratiosa. Current RatioThe current ratio of 2.5 indicates that Company XYZ has a strong liquidity position, with sufficient current assets to cover its current liabilities.b. Quick RatioThe quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations without relying on inventory. Company XYZ has a quick ratio of 2.0, suggesting a robust liquidity position.3.3 Solvency Ratiosa. Debt-to-Equity RatioThe debt-to-equity ratio of 0.8 indicates that Company XYZ has a moderate level of leverage, with debt financing accounting for a significant portion of its capital structure.b. Interest Coverage RatioThe interest coverage ratio of 5.0 indicates that Company XYZ has sufficient earnings to cover its interest expenses, reflecting a strong financial position.3.4 Efficiency Ratiosa. Inventory Turnover RatioThe inventory turnover ratio of 5.2 suggests that Company XYZ is efficiently managing its inventory, with a high level of inventory turnover.b. Receivables Turnover RatioThe receivables turnover ratio of 10.0 indicates that Company XYZ is collecting its accounts receivable quickly, reducing the risk of bad debt.ConclusionBased on the analysis of Company XYZ's financial report, it is evident that the company has demonstrated strong financial performance and stability. The company's profitability, liquidity, solvency, and efficiency ratios indicate a healthy financial position, supported by consistent revenue growth, effective cost management, and efficient use of assets and liabilities. As such, Company XYZ appears to be a solid investment opportunity for potential investors and creditors.。
英文版财务分析报告框架(3篇)
第1篇Executive SummaryThis financial analysis report provides a comprehensive overview of [Company Name]'s financial performance over the past [time frame], including an analysis of its financial statements, profitability, liquidity, solvency, and investment activities. The report aims to assess the company's financial health, identify strengths and weaknesses, and provide recommendations for future improvement.1. Introduction1.1 Background of the Company- Brief history- Industry overview- Key products/services1.2 Objectives of the Report- To evaluate the financial performance of [Company Name]- To identify financial strengths and weaknesses- To provide recommendations for improvement2. Financial Statements Analysis2.1 Income Statement Analysis2.1.1 Revenue Analysis- Revenue trends over the past [time frame]- Revenue growth rate- Revenue sources2.1.2 Cost of Goods Sold (COGS)- COGS trends over the past [time frame]- COGS as a percentage of revenue- Comparison with industry benchmarks2.1.3 Gross Profit Margin- Gross profit margin trends over the past [time frame]- Comparison with industry benchmarks2.1.4 Operating Expenses- Trends in operating expenses over the past [time frame]- Analysis of major expense categories (e.g., selling, general, and administrative expenses)- Comparison with industry benchmarks2.1.5 Net Profit Margin- Net profit margin trends over the past [time frame]- Comparison with industry benchmarks2.2 Balance Sheet Analysis2.2.1 Assets- Analysis of current assets (e.g., cash, accounts receivable, inventory)- Analysis of fixed assets (e.g., property, plant, and equipment)- Comparison with industry benchmarks2.2.2 Liabilities- Analysis of current liabilities (e.g., accounts payable, short-term debt)- Analysis of long-term liabilities (e.g., long-term debt, deferred tax liabilities)- Comparison with industry benchmarks2.2.3 Equity- Analysis of shareholders' equity (e.g., common stock, retained earnings)- Comparison with industry benchmarks2.3 Cash Flow Statement Analysis2.3.1 Operating Cash Flow- Analysis of operating cash flow over the past [time frame]- Comparison with net income- Impact of operating activities on cash flow2.3.2 Investing Cash Flow- Analysis of investing cash flow over the past [time frame]- Comparison with capital expenditures- Impact of investing activities on cash flow2.3.3 Financing Cash Flow- Analysis of financing cash flow over the past [time frame]- Comparison with debt and equity financing activities- Impact of financing activities on cash flow3. Financial Ratios Analysis3.1 Liquidity Ratios3.1.1 Current Ratio- Current ratio trends over the past [time frame]- Comparison with industry benchmarks3.1.2 Quick Ratio- Quick ratio trends over the past [time frame]3.1.3 Cash Ratio- Cash ratio trends over the past [time frame]- Comparison with industry benchmarks3.2 Solvency Ratios3.2.1 Debt-to-Equity Ratio- Debt-to-equity ratio trends over the past [time frame]- Comparison with industry benchmarks3.2.2 Interest Coverage Ratio- Interest coverage ratio trends over the past [time frame]- Comparison with industry benchmarks3.2.3 Times Interest Earned Ratio- Times interest earned ratio trends over the past [time frame] - Comparison with industry benchmarks3.3 Profitability Ratios3.3.1 Gross Profit Margin- Gross profit margin trends over the past [time frame]- Comparison with industry benchmarks3.3.2 Net Profit Margin- Net profit margin trends over the past [time frame]- Comparison with industry benchmarks3.3.3 Return on Assets (ROA)- ROA trends over the past [time frame]3.3.4 Return on Equity (ROE)- ROE trends over the past [time frame]- Comparison with industry benchmarks3.4 Efficiency Ratios3.4.1 Inventory Turnover Ratio- Inventory turnover ratio trends over the past [time frame]- Comparison with industry benchmarks3.4.2 Accounts Receivable Turnover Ratio- Accounts receivable turnover ratio trends over the past [time frame]- Comparison with industry benchmarks3.4.3 Total Asset Turnover Ratio- Total asset turnover ratio trends over the past [time frame]- Comparison with industry benchmarks4. Key Findings and Analysis4.1 Strengths- Highlight key financial strengths identified during the analysis4.2 Weaknesses- Identify key financial weaknesses identified during the analysis4.3 Opportunities- Discuss potential opportunities for growth and improvement based on the analysis4.4 Threats- Identify potential threats to the company's financial performance based on the analysis5. Recommendations5.1 Improvement Strategies- Provide specific recommendations for improving the company's financial performance, based on the analysis5.2 Risk Mitigation- Discuss strategies for mitigating potential risks identified during the analysis5.3 Monitoring and Reporting- Suggest methods for monitoring the company's financial performance and reporting on progress6. ConclusionThis financial analysis report provides a detailed assessment of [Company Name]'s financial health and performance. By identifying strengths, weaknesses, opportunities, and threats, the report aims to provide valuable insights for decision-makers and stakeholders. Implementing the recommended strategies and monitoring the company's financial performance will be crucial in ensuring long-term success.7. Appendices7.1 Financial Statements- Include the complete set of financial statements (income statement, balance sheet, cash flow statement)7.2 Additional Data and Calculations- Provide any additional data and calculations used in the analysis7.3 References- List all sources of data and information used in the reportNote: This framework is intended to serve as a guide for creating a comprehensive financial analysis report. The actual content and depth of the report will vary based on the specific company and industry being analyzed.第2篇Executive SummaryThe executive summary provides a concise overview of the key findings of the financial analysis report. It should include the following elements:1. Purpose of the Report: Briefly state the objective of the financial analysis, such as assessing the financial health of a company, evaluating investment opportunities, or analyzing industry trends.2. Key Findings: Highlight the most significant findings from the analysis, including financial performance, profitability, liquidity, solvency, and efficiency ratios.3. Recommendations: Summarize the recommendations based on the analysis, such as investment decisions, strategic actions, or operational improvements.4. Scope of the Analysis: Mention the time period covered by the analysis and any specific financial metrics or data sources used.---1. IntroductionThis section sets the stage for the report by providing background information and context.1. Background: Describe the company or industry being analyzed,including its history, products/services, and market position.2. Objectives: Clearly define the objectives of the financial analysis, including what aspects of the company's financial performance will be evaluated.3. Methodology: Outline the methods and tools used to conduct the financial analysis, such as ratio analysis, trend analysis, and benchmarking.---2. Financial Performance AnalysisThis section delves into the financial performance of the company, focusing on key metrics and trends.1. Revenue Analysis:- Revenue trends over time- Revenue by product/service line- Revenue growth rate2. Profitability Analysis:- Net income trends- Gross margin analysis- Operating margin analysis- Net margin analysis3. Liquidity Analysis:- Current ratio- Quick ratio- Days of cash on hand- Receivables turnover ratio4. Solvency Analysis:- Debt-to-equity ratio- Interest coverage ratio- Debt service coverage ratio5. Efficiency Analysis:- Inventory turnover ratio- Accounts receivable turnover ratio- Asset turnover ratio---3. Trend AnalysisThis section examines the trends in the company's financial performance over time.1. Revenue Trends: Analyze the growth or decline in revenue over thepast few years, and identify any significant changes or outliers.2. Profitability Trends: Assess the changes in net income, gross margin, operating margin, and net margin over the past few years.3. Liquidity and Solvency Trends: Analyze the changes in liquidity ratios, solvency ratios, and interest coverage ratios over the past few years.4. Efficiency Trends: Evaluate the changes in inventory turnover, accounts receivable turnover, and asset turnover ratios over the pastfew years.---4. Comparison with PeersThis section compares the company's financial performance with that ofits peers or industry benchmarks.1. Financial Ratios: Compare key financial ratios, such as profitability, liquidity, solvency, and efficiency ratios, with industry averages or peer companies.2. Market Share: Analyze the company's market share and its position relative to its competitors.3. Strategic Positioning: Assess the company's strategic positioning in the market, including its competitive advantages and disadvantages.---5. SWOT AnalysisThis section identifies the company's strengths, weaknesses, opportunities, and threats.1. Strengths: List the company's strengths, such as strong brand recognition, innovative products, or efficient operations.2. Weaknesses: Identify the company's weaknesses, such as high debt levels, poor inventory management, or limited market presence.3. Opportunities: Analyze the opportunities available to the company, such as new market segments, technological advancements, or regulatory changes.4. Threats: Identify the threats that could impact the company'sfinancial performance, such as increased competition, economic downturns, or changes in consumer preferences.---6. Conclusion and RecommendationsThis section summarizes the key findings of the financial analysis and provides recommendations for the company or investors.1. Summary of Findings: Recap the main findings from the analysis, including financial performance, trends, and comparisons with peers.2. Recommendations:- Strategic recommendations for the company, such as entering new markets, improving operational efficiency, or reducing debt levels.- Investment recommendations for investors, such as buy, hold, orsell recommendations based on the company's financial performance and future prospects.3. Limitations: Acknowledge any limitations or assumptions made during the financial analysis.---AppendicesThis section includes any additional information or data that supports the findings of the report.1. Financial Statements: Include the company's income statement, balance sheet, and cash flow statement for the relevant time period.2. Detailed Ratios: Provide a more comprehensive breakdown of the financial ratios used in the analysis.3. Industry Data: Include relevant industry data and benchmarks used for comparison.---By following this framework, you can create a comprehensive and informative financial analysis report that provides valuable insights into the company's financial health and future prospects.第3篇Executive SummaryThe executive summary provides a concise overview of the financial analysis report. It should include the following key points:- Purpose of the Report: Briefly state the purpose of the financial analysis and the specific aspects of the company's financial performance being evaluated.- Company Overview: Provide a brief description of the company,including its industry, size, and key products/services.- Key Findings: Highlight the most significant findings from the analysis, such as financial strengths, weaknesses, and areas of concern.- Recommendations: Offer a summary of the recommendations for improving the company's financial performance or addressing specific issues.Table of Contents- Executive Summary- Company Overview- Financial Analysis- Revenue Analysis- Profitability Analysis- Liquidity Analysis- Solvency Analysis- Capital Structure Analysis- Investment Analysis- Cash Flow Analysis- Comparison with Peers- SWOT Analysis- Recommendations- Appendix1. Company OverviewThis section provides a detailed background of the company, including:- History: A brief history of the company, including its founding, major milestones, and any recent developments.- Industry: An overview of the industry in which the company operates, including key trends and challenges.- Business Model: A description of the company's business model, including its revenue streams and value proposition.- Organizational Structure: Information on the company's organizational structure, including key management personnel.- Location and Operations: Details about the company's physicallocations and operational facilities.2. Financial AnalysisThis section delves into the financial performance of the company, using various ratios and metrics:2.1 Revenue Analysis- Revenue Trends: Analyze the company's revenue over the past several years, looking for trends and patterns.- Revenue Drivers: Identify the key factors that contribute to the company's revenue growth or decline.- Revenue Mix: Examine the composition of the company's revenue, including product lines, services, and geographic regions.2.2 Profitability Analysis- Net Profit Margin: Calculate and analyze the net profit margin to determine the company's profitability.- Operating Margin: Assess the company's operating margin to understand its operational efficiency.- Gross Margin: Analyze the gross margin to evaluate the company's pricing strategy and cost control.- Earnings Per Share (EPS): Calculate and discuss the company's EPS to gauge its profitability on a per-share basis.2.3 Liquidity Analysis- Current Ratio: Calculate and discuss the current ratio to assess the company's short-term liquidity.- Quick Ratio: Analyze the quick ratio to evaluate the company's ability to meet its short-term obligations without relying on inventory.- Cash Conversion Cycle: Calculate the cash conversion cycle to understand the time it takes for the company to convert its investments in inventory and accounts receivable into cash.2.4 Solvency Analysis- Debt-to-Equity Ratio: Calculate and discuss the debt-to-equity ratio to assess the company's long-term financial stability.- Interest Coverage Ratio: Analyze the interest coverage ratio to determine the company's ability to cover its interest expenses.- Times Interest Earned: Calculate the times interest earned ratio to evaluate the company's ability to meet its debt obligations.2.5 Capital Structure Analysis- Debt-to-Total Capital Ratio: Analyze the debt-to-total capital ratio to assess the company's capital structure.- Equity Ratio: Calculate the equity ratio to understand the proportion of the company's assets financed by equity.- Capital Expenditures: Discuss the company's capital expenditures and their impact on its financial health.2.6 Investment Analysis- Return on Assets (ROA): Calculate and discuss the ROA to evaluate the company's efficiency in using its assets to generate profit.- Return on Equity (ROE): Analyze the ROE to determine the return on the shareholders' investment.- Dividend Yield: Calculate the dividend yield to assess the company's dividend policy and potential returns for investors.2.7 Cash Flow Analysis- Operating Cash Flow: Analyze the company's operating cash flow to understand its cash-generating ability.- Investing Cash Flow: Evaluate the company's investing cash flow to assess its capital expenditure and investment activities.- Financing Cash Flow: Discuss the company's financing cash flow to understand its financing activities, such as debt issuance and dividends paid.3. Comparison with PeersThis section compares the company's financial performance with its peers in the industry, using relevant ratios and metrics. The comparison should include:- Market Capitalization: Compare the company's market capitalization with its peers.- Revenue Growth: Analyze the revenue growth rates of the company andits peers.- Profitability Ratios: Compare profitability ratios, such as net profit margin and return on equity.- Liquidity and Solvency Ratios: Assess liquidity and solvency ratios to evaluate the financial health of the company relative to its peers.4. SWOT AnalysisThis section provides a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of the company, considering both internal and external factors.5. RecommendationsBased on the findings from the financial analysis and SWOT analysis,this section offers recommendations for improving the company'sfinancial performance or addressing specific issues. Recommendations may include:- Strategic Initiatives: Suggest strategic initiatives to enhance the company's competitive position and market share.- Operational Improvements: Recommend operational improvements to increase efficiency and reduce costs.- Financial Management: Propose financial management strategies to improve liquidity, solvency, and profitability.- Investment Opportunities: Identify potential investment opportunities that could enhance the company's financial performance.6. AppendixThe appendix contains any additional information or data that support the findings and recommendations of the report. This may include:- Detailed financial statements and footnotes- Charts and graphs illustrating financial trends- Additional ratios and metrics used in the analysis- Research methodology and data sourcesThis framework provides a comprehensive structure for a financial analysis report, ensuring that all key aspects of the company's financial performance are thoroughly examined and presented.。
财务报表分析-英文
Introduction and Basic Concepts
Business Partnership Vision Strategy Budget Forecast
Others Treasury M&A Risk Management Insurance Auditing Compliance Hedging ….
Introduction and Basic Concepts
Minimize Working Capital Maintain Strong Cash Flow
Pay Debts As They Are Due Increase Liquidity
Maintain Strong Financial Position
Introduction and Basic Concepts
导言及基本概念 Introduction and Basic Concepts Introduction Finance Organization Finance Activity Other topics
This training will allow you to understand： Finance Function Concept of Financial KPIs (Revenue, DM, DL, VOH, FOH, SG&A, OI, OCF, EBITDA, DOH, DSO, DPO, Incremental, etc.) BS, P&L and Cash Flow Statements Concepts of Financial Statement Evaluation and Investment Appraisal
财务报告财务报表英文版
XX Co., Ltd. Annual Audit Report YZXXZ () No. 2XX56XX Certified Public Accountants Co., Ltd.ContentI. Audit report Page 1-2II. Financial statements Page 3-6 (i) Balance Sheet Page 3 (ii) Income Statement Page 4 (iii) Cash Flow Statement Page 5 (iv) Change Statement of Owners’ Equity Page 6III. Explanatory notes of financial statements Page 7-23XX CERTIFIED PUBLIC ACCOUNTANTS CO., LTDAudit ReportYZXXZ () No. 2XX56XX Co., Ltd.,We have audited the accompanying financial statements of XX Co., Ltd. (hereinafter referred to as “your company”), including the balance sheet as at December 31, , the income statement, cash flow statement and change statement of owners’ equity of as well as explanatory notes of financial statements.I. Management’s responsibility for the financial statementsManagement of your company is responsible for the preparation and fair presentation of financial statements. This responsibility includes: (1) preparing the financial statements and reflecting fair representation in accordance with provisions of the Accounting Standards for Business Enterprises; (2) designing, implementing andmaintaining the necessary internal control in order to free financial statements from material misstatement, whether due to fraud or error.II. Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with provisions of the Chinese Certified Public Accountants Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the certified public accountants consider the internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that area appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Audit opinionIn our opinion, the financial statements of your company have been prepared in accordance with provisions of the Accounting Standards for Business Enterprises in all material aspects, and present fairly the financial position of your company as of December 31, and the results of its operations and cash flows of .XX Certified Public Accountants Co., Ltd. Chinese Certified Public Accountant: Guangdong, China Chinese Certified Public Accountant:February 29,Balance SheetDecember 31,KQ 01 Enterprise name: XX Co., Ltd.Unit: RMB YuanInterest receivable Employees’ compensationpayableDividend receivable Tax payableOther accounts receivable Interest payable Inventory Dividend payableAssets divided as availableassets for saleOther accounts payableNon-current assets due within 1 year Liabilities divided as available liabilities for saleOther current assets Non-current liabilities duewithin 1 yearTotal current assets Other current liabilitiesTotal current liabilitiesNon-current liabilities:Long-term borrowingsBonds payableIncluding: Preferred sharesPerpetual capital securitiesLong-term account payableLong-term employees’compensation payableNon-current assets: Special payablesAvailable for sale financialAccrued liabilitiesassetsHeld-to-maturity investments Deferred incomeLong-term account receivable Deferred tax liabilitiesLong-term equity investment Other non-current liabilities Investing real estate Total non-current liabilitiesFixed asset7Total liabilitiesProject in construction Owners’ equity (orshareholders’ equity)16 Engineering material Paid-in capital (or sharecapital)Fixed asset disposal Other equity instruments Production biological assets Including: Preferred sharesOil and gas assets Perpetual capital securities2Income StatementYear ofKQ 02 Enterprise name: XX Co., Ltd.Unit: RMB YuanPlus: Non-business income5 Including: Gain from non-current asset disposalMinus: Non-business expenditure6 Including: Loss from non-current asset disposalIII. Total profit (total loss with “-”)Minus: Income tax expense7 IV. Net profit (net loss with “-”)V. Net after-tax amount of other comprehensive incomes(i) Other comprehensive incomes not reclassified into profit andloss in future1. Changes for net liability or net asset of remeasured and resetbenefit plan2. Shares enjoyed in other comprehensive incomes not reclassifiedinto profit and loss by the invested unit(ii) Other comprehensive incomes reclassified into profit and lossin future1. Shares enjoyed in other comprehensive incomes reclassifiedinto profit and loss by the invested unit in future4Cash Flow StatementYear ofKQ 03 Enterprise name: XX Co., Ltd.Unit: RMB YuanII. Cash flow from investing activities:Cash flow from disposal of investmentsCash received from returns of investmentsCash received from incomes on investmentsNet cash received from disposal of fixed assets, intangible assets and other long-term assetsOther cash received relating to investing activitiesSub-total of cash inflows from investing activitiesCash paid to acquire fixed assets, intangible assets and other long-term assetsCash paid to acquire investmentsNet cash received from the subsidiary company and other business unitsOther cash payments relating to investing activitiesSub-total of cash outflows from investing activitiesNet cash flows from investing activitiesIII. Cash flows from financing activities:5。
(完整word版)新会计准则财务报表-中英文
递延所得税资产Deferred tax
减：库存股Less: Trean-current assets
盈余公积Earnings reserve
非流动资产合计Total Non-current Assets
未分配利润Retained earnings
项目Items
期末余额
2010
RMB ‘000
年初余额
2009
RMB’ 000
一、营业收入Operating Revenue
减：营业成本Less: Cost of goods sold
营业税金及附加Sales taxes and surcharges
销售费用Selling expenses
管理费用G & A expenses
应付股利Dividend payables
存货Inventories
应付利息Interest payables
其他流动资产Other current assets
其他应付款Other payables
流动资产合计Total Current Assets
一年内到期的非流动负债
Current portion of non-current liabilities
财务费用Financial cost
资产减值损失Assets impairments
加：公允价值变动收益（+、－）Add: Gains/losses on fair value changes
投资收益（+、－）Income from investments
二、主营业务利润Operating Profit
长期应付款Long term payables
财务报表分析(双语)chapter4
Chapter 4, Slide #17
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Single-step Form
Revenue Net sales Interest income
XYZ COMPANY Income Statement For The Year Ended December 31, 2008
$50,000 3,000 15,000 $68,000 $30,000 5,000 3,200
An income statement, known as a Profit and Loss Statement, is a summary reporting profitability or the operating result of a business for an accounting period, such as one month, one quarter, or one year.
Conception of Income Statement
What Is an Income Statement?
What is Income Statement used for? The basis of Income Statement .
What Is an Income Statement?
200
3,000 $41,400
Net Income
财务分析-财务状况分析(英文版) 精品
Financial Statement AnalysisTo develop techniques for evaluating firms using financial statement analysis for equity and credit analysis.Integrates financial statement analysis with corporate finance, accounting and fundamental analysis.Adopts activist point of view to investing: the market may be inefficient and the statements may not tell all the truth.What Will You Learn From the Course• How statements are generated• The role of financial statements in determining firms’ values• How to pull ap art the financial statements to get at the relevant information• How ratio analysis aids in valuation• The relevance of cash flow and accrual accounting information • How to calculate what the P/E ratio should be ?• How to calculate what the price-to-book ratio ?Need for financial statement analysisGAAP – plexEconomic events about the firm to be reported to the public Relevance vs ReliabilityReporting: Recognition vs Disclosure (where)Users of Firms’ Financial InformationEquity InvestorsInvestment analysisLong term earnings powerManagement performance evaluationAbility to pay dividendRisk – especially marketDebt InvestorsShort term liquidityProbability of defaultLong term asset protectionCovenant violationsUsers of Firms’ Financial InformationManagement: Strategic planning; Investment in operations;Performance EvaluationLitigants - Disputes over value in the firmCustomers - Security of supplyGovernments: Policy making and Regulation– Taxation– Government contractingEmployees: Security and remunerationInvestors and management are the primary users of financial statementsFundamental AnalysisStep 1 - Knowing the Business•The Products; The Knowledge Base•The petition’ The Regulatory ConstraintsStep 2 - Analyzing Information•In Financial Statements•Outside of Financial StatementsStep 3 - Forecasting Payoffs•Measuring Value Added•Forecasting Value AddedStep 4 - Convert Forecasts to a ValuationStep 5 - Trading on the Valuation•Outside Investor: pare Value with Price to; BUY, SELL, or HOLD•Inside Investor: pare Value with Cost to; ACCEPT or REJECT StrategyA valuation model guides the process: Forecasting is at the heart of the process and a valuation model specifies what is to be forecasted (Step 3) and how a forecast is converted to a valuation (Step 4). What is to be forecasted (Step 3) dictates the information is implied?Balance Sheet•Assets (SFAC6): “probable future economic benefits obtained or controlled by a particular entity as a resultof past transaction or events-- no reference to risk (eg, assets sold but in which entityretains a risk)•Liabilities (SFAC6): ‘probable future sacrifice of economic benefits arising from present obligations of a particularentity to transfer assets or provide services to other entities in the future as a result of past transactions or events”-- not always followed (eg, certain leases and, until recently, pension benefits)•Equity (SFAC6): the residual interest in the net assets of an entity that remains after deducting i ts liabilities”-- does not handle situations where a source of capitalhas elements of debt & equity (eg, convertibles)•Classified by liquidityCA : converted to cash or used within 1-year oroperating cycle (if longer)CL: obligations expected to be settled within 1-year oroperating cycle•Tangible A&L reported above intangibles (goodwill, contingent liabilities)Measurement of Assets & Liabilities•Historical Cost, for most ponents of Balance Sheet•May be at market under “lower of cost or market rule”•Reversals of prior write downs allowed for marketable equity securities but not for inventories•Financial service firms (banks, brokerage, insurance) report certain A&L at market•A&L of foreign affiliates reported at end-of-period X-rate or a bination of it and specified historical X-rates •Intangible assets have uncertain and hard to measure benefits and are reported only when acquired via a“purchase method” acquisition-- brand names-- when reported, called Goodwill, Patents, etc.Two Fundamental shortings of the Balance Sheet Elusiveness of valueValue cannot be assigned to all assetsOther Balance Sheet issues: Book Value vs. Market ValueInflation: The correct way to think about inflation is that inflation represents a decline in the value of one good – the currency of denomination (i.e., the U.S. dollar in our case). When the value of the currency declines, prices of all other goods & services rise because those prices are measured in terms of dollarsWeakness of Historical Cost Accounting: it ignores the impact of changes in the purchasing power of the currency. The net impact of not considering inflation is that book value understates the market value.Obsolescence causes book value to overstate market valueHow to Measure Effect of Obsolescencea. Observe difference between market value & book value (after adjustingfor inflation)b. Estimate the value of the asset’s earning power. But this is simply thediscounted cash flow approach & thus it represents circular reasoning.Inflation & ObsolescenceInflation causes book value to understate market valueObsolescence causes book value to overstate market valueThe effect of inflation & obsolescence may not be apparent in an examination of book values because they offset one anotherOrganizational Capitala. The whole is worth more than the sum of the partsb. Returns to Entrepreneurshipc. Difficult to separate from the firm as a going concernd. Can be estimated only by examining the earning power of the panySources of Organizational Capital Valuesa. Long-term relationshipsb. Reputational “brand name” capitalc. Growth optionsd. Network of suppliers and distributorsMore on Organizational Capitala. It is difficult to separate the firm’s organizational capital from the firm as anongoing concernb. The value of a brand name is not reflected in the replacement cost of assetsc. Can only be estimated by examining the earning power of the pany (DCF)Adjustments to Book ValueEstimate Replacement CostEstimate Liquidation ValueDrawbacksDo adjusted book values reflect market values?Adjusted book values do not consider organizational capital Drawbacks of AdjustmentsIt is often difficult to determine if we have made the correct adjustments Adjustments often fail to consider the value of off-balance sheet itemsReplacement CostNo universal agreementCan use price indexCPI, PPI, GDP implicit deflatorIgnores organizational capitalLiquidation ValueSecondary markets do not existAsset specificityContestable marketsIne statementNet SalesCost of Goods SoldGross ProfitSelling & Administrative expensesAdvertisingLease paymentsDepreciation and amortizationRepairs and maintenanceOperating ProfitOther ine (expense)Interest ineInterest expenseEarnings before Ine taxesIne taxesNet earningsStatement of Consolidated Retained Earnings Retained earnings at beginning of yearNet earningsCash DividendsRetained earnings at end of yearIne Statement•Based on Accrual accounting•Based on Matching Principle•Revenues(SFAC6) “inflows of an entity from delivering or producing goods, rendering services, or carrying out otheractivities that constitute the entities ongoing major or centraloperations”•Expenses(SFAC6) “outflows from delivering or producing goods, rendering services, or carrying out other activities thatconstitute the entities ongoing major or central operations”•PREHENSIVE INE CONCEPT“the change in equity from transactions from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners”•Gains“Increases in equity from peripheral or incidental transactions of an entity except those that result from revenues or investment by owners.”•Losses“Decreases in equity from p eripheral or incidental transactions of an entity except those that result from revenues or investment by owners.”Revenues+ Other ine and revenues- E xpenses= Ine from CONTINUING OPERATIONS∀Unusual or infrequent events= Pre tax earnings from continuing operations- I ne tax expense= After tax earnings from continuing operations*∀Discontinued operations (net of tax)*∀Extraordinary operations (net of tax)*∀Cumulative effect of accounting changes (net of tax) * = Net Ine ** Per share amounts are reported for each of these items High quality ine statement reflect repeatable ine statement Gain from non-recurring items should be ignoredwhen examining earningsHigh quality earnings result from the use of conservative accounting principles that do not overstate revenues or understate costsLow Quality of Earnings Indicators1.Unstable Ine Statement Elements unrelated to normalbusiness operations2 Earnings that reflect dubious adjustments to estimatedliability accounts3 Earnings that have been determined using liberal accountingpolicies (methods and estimates) because of the resultingoverstatement of net ine. Such overstatement also results in the overstatement of future earnings projections ine based on ultraconservative accounting policiessince the resulting net ine is misleading as a basis forpredicting future earningsWhat to do?pare the pany’s accounting polices to the prevalentaccounting policies in the industry5.Unreliable and inaccurate accounting estimatesWhat to watch for?Prior estimates materially differ from actualexperience, such as where the pany’s assumed interest rate onpension fund assets significantly differs from the actual interestrate earned as reflected by significant actuarial gains and losses.What to do?Restate net ine as if realistic accounting estimates were used.6. Earnings that have been artificially smoothed or managed.What to watch for?a. Revenue reflected earlier or later than the realistic time periodb. Shifting of expense among reporting periodsc. Smoothly rising earnings trendd. Sharp increase or decrease in sales in the last quarter of the yearsas reflected in the 4th quarter ine statemente. Trading of investment securities among affiliated paniesf. Significant modification in estimated liability accounts in the lastquarterg. Writing down a good asset (inventory) and selling it next year toshow higher earningsh. The “big bath”, in which everything is written off in a really badyear so that it will be easier to show good profits in the followingyears. This sometimes occurs when new management takes overand wishes to blame old management for poor profits or whenearnings are already so low that their further reduction my nothave significant impactWhat to do?Look at the functional relationship of sales and net ine over time. An inconsistent relationship may be a manipulatorindicator. Restate earnings by taking out profit increments orreductions due to ine management ploys7.Deferral of costs that do not have future economic benefitWhat to watch fora. Inventory of unsalable items in view of current environment (8track tapes, typewriters, large automobiles during oil shortage)b. Sudden write-offs of inventoryc. Goodwill on the balance sheet but the pany has none (operating atlosses, significant decline in market share, bad publicity)d. Costs that are currently capitalized when in prior years, they wereexpensed (e.g. Tooling costs in inventory)What to doRestate net ine as if the unrealistic deferral had not been made.8. Unjustified Changes in Accounting Principles and EstimatesWhat to watch fora. A firm has a past history of making frequent accounting changesb. Accounting changes that create earnings growthc. The pany fires the auditor and hires another one because of adisagreement over a proposed accounting change.What to doa. Determine whether the accounting change is justified by seeing if itconfirms to requirements in FASB statements, Industry Audit Guides& IRS regulationsb. Ascertain whether the accounting change is preferable, given nature ofbusiness (e.g., decreasing the life of a puter because of newtechnological advances in the industry)c. Does change make sense? (Lowering bad debt expense as % ofaccounts receivable does NOT make sense when customer defaultsare rising)d. If accounting change results in increasing net ine, restate earnings asthey would have been if the old method had been retained.9.Premature or Belated Revenue RecognitionWhat to watch fora. Accruing unbilled salesb. Is there a sufficient provision for future losses in connection withthe recognition of revenue?c. Improper deferral of revenue to a later periodd. Reversal of previously recorded profitsWhat to do- Restate revenue as if proper revenue recognition were made10.Underaccrual or Overaccrual of ExpensesWhat to watch fora. Failure to incur necessary maintenance expendituresb. Inadequate warranty provisionWhat to do- Adjust net ine for difference between expenseprovided & normal expense11.Improper Accounting PoliciesWhat to watch fora. Reduction of expense for overly anticipated recoveries of excesscosts due to modifications in government contractsb. Substantial provision for future costs in present year (e.g.warranties) because firm was remiss in making sufficientprovisions in prior yearsWhat to do-restate earning of years affected so can determineproper earnings trend12.Modification in Loan Agreements Due to FinanciallyWeak BorrowersWhat to watch for - lowering of interest on loanWhat to do - downwardly adjust net ine for inclusion of accrued interest ine on risky loans13.Change in corporate policy for the current year, whichimpacts earnings (e.g., writing insurance renewal contracts in the 4th quarter of the current year rather than the 1stquarter of the next year).14.Unjustified Cutback in Discretionary CostsWhat to watch fora. Declining tend in discretionary costs as a % of net sales or toassets to which they applyb. Vacillation in the ratio of discretionary costs to sales over theyears as this may indicate management of earningsWhat to doa. Determine trend in discretionary costs over time throughuse of index numbersb. Determine ratio of discretionary costs to sales over last 5years. An example is ratio of repairs & maintenance tosales and/or to fixed assets15.Book Ine Substantially Exceeds Taxable IneWhat to watch for - A continual, significant rise in deferred ine tax credit account due to liberal accounting policies16.Residual Ine that is Substantially less than Net IneResidual Ine may be determined by deducting the imputed costof capital (weighted average cost of capital time total assets)from net ine.What to do - Determine ratio over time of residual ine to net ine17. A High Degree of Uncertainty Associated with IneStatement ponentsWhat to watch fora. Firm engaged in long-term activities requiring many estimates inine measurement processb. Significant future loss provisionsc. Estimates have been consistently materially different from actualexperienceWhat to doa. pare o ver time firm’s estimated liability provisions with actuallosses occurring. – e.g., warranty cost sb. Determine what percent of total assets are intangible, which bytheir nature require material estimates to be made18.Unreliably Reported EarningsWhat to watch fora. Poor system of internal control because it infers possibleerrors in reporting systemb. High turnover rate in auditorsc. pany has reputation for managing earnings and/or usingliberal accounting policiesd. Indications of lack of management integrity as evidenced bysuch things as bribesWhat to doa. Determine trend in audit fees over timeb. Examine for disclosure made by pany related to adjustmentsdue to prior years' accounting errorsc. Look at accounting, financial and brokerage researchpublications that note and give examples of panies withquestionable accounting policies.High Quality of Earnings Indicators: Ine Backed up by Cash Ine not involving the Inclusion of amortization costsrelated to questionable assets, such as deferred charges Ine that reflects Economic Reality4.Ine Statements ponents that are Recognized Close to thePoint of Cash Inflow and Cash OutflowPolicies that lower quality of earnings1. reduce expense for expected recovery of excess costs resultingfrom changes in government contract – only collected 65%2. unrealistic decline in percentage of sales allowance to sales3. provision for future costs (warranties) high becauseunderprovided in past4. “Big Bath”5. re-negotiate terms of loan with weak borrower6. transfer from 1 sub to another7. sell securities at a gain and buy them back at higher price- haveto recognize lossHow pany smoothes earnings Check list1Does level discretionary cost conform to past2Is there a drop in trend of discretionary costs as percentage of sales3Does cost cutting program involve significant cut in discretionary costs4Does cost cutting program eliminate fat?5Do discretionary costs show fluctuations relative to sales 6Is there a sizable jump in discretionary costs?Summary checklist of key pointsA. No single “real” net ine figure existsB. The analyst must adjust reported net ine to an earningsfigure that is relative to him/her.C. Earnings quality evaluation is important in investment,credit, audit & management decision making.D. Appraising the quality of earnings requires anexamination of accounting, financial, economic andpolitical factors.E. Earnings quality elements are both quantitative andqualitativeCash flow statement1. SCF (Statement of Cash Flows) adds in situations where Balance Sheetand Ine Statement provide limited insight2. SCF helps identify the categories into which panies fit3. Financial flexibility is a useful weapon to gain a petitive advantageand is best measured by studying the SCFThe key analytical lessonsThe cash flow statement – not the ine statement – provides the best information about a highly leveraged firm’s financial healthThere is no advantage in showing an accounting profit, the main consequence of which is incurring taxes, resulting, in turn, in reduced cash flowsCash Flow and pany Life CycleCash Flow and Start-up paniesLittle or no operating cash flowsLarge cash outflows for investing activitiesLarge need for external financing (mostly from issuing mon stock, issue long term debt)Cash Flows and Emerging Growth paniesSome operating cash flow (not enough to sustain growth)Large cash outflows to expand activitiesRequires cash flows from financingPay back some short-term debt, issue some mon stockCash Flows and Established Growth paniesFund growth from operating cash flowDepreciation is substantialRepayment of long term debt, begin to pay dividendCash Flows and Mature Industry paniesModest capital requirementsDepreciation and amortization is significantNet negative reinvestmentLarge dividend payout, reduction in long term debt Cash Flows and Declining Industry paniesNet cash user (similar to emerging growth)Lower dividends, Slim operating cash flowssell assetsCash Flows and Financial FlexibilitySafety of dividendFinance growth with internal fundsMeet other financial obligationsFinancial Ratios Analysis:Ratios are more informative than raw numbers1. Ratios provide meaningful relationships between individual values inthe financial statements2. Ratios help investors evaluate management3. Enable parison of a firm’s performance toThe aggregate economyIts industry or industriesIts major petitorsIts past performanceRatios and Financial Analysisparability among firms of different sizesProvides a profile of the firmCaution:Economic assumption of Linearity – ProportionalityNonlinearity can cause problems:Fixed costs, EOQ for inventoriesBenchmarks; Is high Current ratio good? For whom?Industry-wide norms.Accounting Methods; Timing & Window DressingLIMITATIONS1. No theory to define ‘good’2. Historical, not economic3. Most as of a single point in time4. Seasonal operations5. One-time effects6. Designed for manufacturersLiquidity Ratios: attempt to measure the ability to pay obligations such as current liabilities and the pool of assets available to cover the obligations. Liquidity is the ability of an asset to be converted to cash quickly at low cost. Converting an asset to cash occurs in one of two ways. Sell the asset, hoping it has reasonable liquidity, or in the case of a financial asset, like accounts receivable or Treasury bill, maturity brings cash. Working capital circulates from inventory to accounts receivable to cash, etc. Accounting value estimates of liquid assets are reasonable estimates of their value.Current assets (the pool of circulating cash assets available to be allocated to pay bills) minus current liabilities (the pool of obligations the business must pay in the near future) is an analytical amount called net working capital (NWC).NWC = current assets - current liabilitiesNWC/total asset ratio = net working capital / total assetsThe current ratio is the classic liquidity ratio, but is merely a variation of the idea above—what pool of circulating assets is available relative to the pool of current obligations:Current ratio = current assets / current liabilitiesQuick ratio =(cash + marketable securities + accounts receivable) /current liabilitiesCash ratio = (cash + marketable securities) / current liabilitiesCash flow from operation ratio = OCF / current liabilitiesLeverage ratios are two types: balance sheet ratios paring leverage capital to total capital or total assets, and coverage ratios which measure the earnings or cash-flow times coverage of fixed cost obligations.Balance sheet ratiosLong-term debt ratio = long-term debt / ( long-term debt + equity)Debt-equity ratio = long-term debt/equityTotal debt ratio = total liabilities / total assetsA coverage ratio, such as the times interest earned ratio, measures an amount available relative to amount owed. How many times is the obligation covered?Times interest earned = EBIT / interest expense= (EAT+Tax+Interest Exp)/ interest expenseTimes Cash flow coverage =(OCF+Tax+Interest Exp)/ interest expenseTotal assets turnover = Sales / Total assetsAccounts Receivable turnover = Sales / AR[Days A/R outstanding = 365 / Accounts Receivable turnover]Inventory turnover = Sales / Average Inventory, orCOGS / Average Inventory[Inventory Conversion = 365 / Inventory turnover]Payable turnover (deferral) = Purchase (or COGS) / AP[Days A/P outstanding = 365 / Payable turnover]Note: Cash Cycle = Inventory Conversion + Days A/R outstanding –Days A/P outstandingProfitability Ratios: refers to some measure of profit relative to revenue or an amount invested.The net profit margin measures the proportion of sales revenue that is profit available for sources of funds (EBIT-tax).Gross profit margin = gross profit / salesOperating profit margin = EBIT / salesNet profit margin = net ine / salesReturn on assets = (net ine + interest )/ average total assetsReturn on equity = net ine/ average equityPayout ratio = dividends / net earningsPlowback ratio = 1 - payout ratio= (earnings – dividends)/(net earnings) = (earnings retained in period)/( net earnings)Growth in equity = plowback ratio x ROEMarket Based Ratios•For pricing an IPO if business going public•P/E RatioWhat investors are willing to pay for a $ of earnings (Current/ Forecast)What creates a high P/E?•Market/BookUsually much different than 1.•Price/Cash FlowThe Du Pont System is a process of analyzing ponent ratios, (also called deposition) of the ROA and ROE to explain their level or changesRatio Pr 1 Leverage Turnover Asset y ofitabilit Equity Debt ROA EquityTA TA Sales Sales NI EquityTA TA NI Equity NI ROE ⨯⨯=⎪⎪⎭⎫ ⎝⎛+⨯=⨯⨯=⨯==Industry analysis:Definition of an industry: the group of firms producing products that are close substitutes for each other.Forces driving industry petition: There are five forces in determining the petitive structure of an industry, they are: (1)Entry, (2)Threats of substitutions, (3)bargaining power of buyers, (4)Bargaining power of suppliers, and (5)rivalry among current petitors, and can be pictured as:Five forces model:Potential EntrantsThreats of new entrants(Suppliers) (Buyers )0 bargaining power Industry petitors bargaining powerRivalry among existing firmsThreats of substitutesSubstitutesThreats of entry: new entrants bring to an industry new capacity, the desire to gain market share, and often substantial resources. Price can bid down or incumbent’s costs inflated as a result, reducing profitability.Barriers to entry:A. Economics of scales deter entry by forcing the entrants to e in at alarge scale and risk strong reaction from existing firms or e in at asmall scale and accept a cost disadvantage.B. Product differentiation: product differentiation means that establishedfirms have brand identification and customer loyalties. Differentiation creates a barrier to entry by forcing entrants to spend heavily to overe existing customer loyalties.C. Capital requirement: the need to invest large financial resources inorder to pete creates a barrier to entry, particularly if the capital is required for risky or unrecoverable up-front advertising or R&D.Capital requirement maybe also needed for customer credit, inventory start-up cost, as well as production cost.D. Switching costs: A barrier to entry is created by the switching cost,that is, one-time cost facing the buyer of switching from one supplier’s product to another’s.E. Access to distribution channels: the more limited the wholesale orretail channels for a product are and the more existing petitors have these tied up, obviously the tougher entry into the industry.F. Cost disadvantages independent of scale: proprietary producttechnology, favorable access to raw materials, favorable locations,government subsidy, and learning or experience curve.G. Government policy:Expected retaliation: conditions that signal the strong likelihood of retaliation to entry and hence to deter it are the following:A. A history of vigorous retaliation to entrants.B. Established firms with substantial resources to fight back.C. Established firms with great mitments to the industry andhighly illiquid assets employed in it.D. slow industry growth, which limits the ability of the industryto absorb a new firm without depressing the sales andfinancial performance of established firms.。
(完整word版)财务报表分析(英文版)
Timing: Often a transaction affects the revenue or expenses of two or more accounting periods. The related cash inflow or outflow does not always coincide with the period in which these revenue or expense items are recorded. Thus, the need for adjusting entries results from timing differences between the receipt or disbursement of cash and the recording of revenue or expenses. For example, if we handle transactions on a cash basis, only cash transactions duriห้องสมุดไป่ตู้g the year are recorded. Consequently, if a company's employees are paid every two weeks and the end of an accounting period occurs in the middle of these two weeks, neither liability nor expense has been recorded for the last week. To bring the accounts up to date for the preparation of financial statements, both the wage expense and the wage liability accounts need to be increased.
财务报表分析 英文
Financial Statement AnalysisIntroductionFinancial statement analysis is a crucial tool for assessing the financial performance and stability of a company. By analyzing a company’s financial statements, investors and other stakeholders can gain insights into its profitability, liquidity, solvency, and overall financial health. This document provides an overview of financial statement analysis, including the different types of financial statements, key financial ratios used in analysis, and the importance of using a systematic approach for analyzing financial statements.Types of Financial StatementsFinancial statements are a collection of reports that provide a snapshot of a company’s financial position and performance over a specific period. The three main types of financial statements include:1. Balance SheetThe balance sheet is a statement that shows the financial position of a company at a given point in time. It provides information about a company’s assets, liabilities, and shareholders’ equity. The balance sheet is divided into two main se ctions: the left side shows the company’s assets, while the right side shows its liabilities and shareholders’ equity.2. Income StatementThe income statement, also known as the profit and loss statement, reports a company’s revenues, expenses, and net in come over a specific period. It provides insights into a company’s profitability and helps identify trends in its revenue and expenses. The income statement follows a simple equation: revenues minus expenses equal net income.3. Cash Flow StatementThe cash flow statement shows the inflows and outflows of cash in a company over a specified period. It provides information about a company’s operating, investing, and financing activities. The cash flow statement helps assess a company’s ability to generate cash and its liquidity.Key Financial RatiosFinancial ratios are used to analyze the relationships between different items in a company’s financial statements. They help evaluate a company’s financialperformance, efficiency, liquidity, and solvency. Some key financial ratios used in financial statement analysis include:1. Profitability RatiosProfitability ratios measure a company’s ability to generate profits. Common profitability ratios include gross profit margin, operating profit margin, and net profit margin.2. Liquidity RatiosLiquidity ratios assess a company’s ability to meet its short-term obligations. These ratios include the current ratio and quick ratio.3. Solvency RatiosSolvency ratios evaluate a company’s long-term financial stability and ability to meet its long-term obligations. Examples of solvency ratios include the debt-to-equity ratio and the interest coverage ratio.4. Efficiency RatiosEfficiency ratios measure a company’s ability to utilize its assets and resources effectively. Examples include the inventory turnover ratio and the accounts receivable turnover ratio.Systematic Approach for Financial Statement AnalysisTo conduct an effective financial statement analysis, it is important to follow a systematic approach. The key steps in this approach include:1. Gathering Financial StatementsCollect the company’s financial statements, including the balance sheet, income statement, and cash flow statement.2. Analyzing Financial RatiosCalculate the relevant financial ratios and analyze them to assess the company’s financial performance and condition.3. Comparing RatiosCompare the calculated financial ratios with industry averages or with the company’s historical performance to identify trends and benchmark the company’s performance.4. Conducting a Trend AnalysisAnalyze the company’s financial statements over multiple periods to identify any significant changes or trends in its financial performance.5. Making Informed DecisionsBased on the analysis of the financial statements and ratios, make informed decisions about the company’s financial health, investment potential, and future prospects.ConclusionFinancial statement analysis is an important tool for assessing a company’s financial performance and stability. By analyzing a comp any’s financial statements and calculating key financial ratios, investors and stakeholders can make informed decisions about the company’s financial health, stability, and investment potential. Following a systematic approach for financial statement analysis ensures a comprehensive evaluation and helps identify trends and benchmarks for comparison.。
英文分析财务报告模板(3篇)
第1篇Executive SummaryThis document provides an in-depth analysis of the financial report for [Company Name], covering the period from [Start Date] to [End Date]. The analysis includes an overview of the company’s financial performance, liquidity, solvency, profitability, and investment activities. It also identifies key strengths, weaknesses, and areas of concern that could impact the company’s future financial health.1. Introduction[Company Name] is a [Industry] company that has been operating in the market for [Number of Years]. The company’s primary business activities include [List Key Business Activities]. This financial report analysis aims to provide stakeholders with a comprehensive understanding of the company’s financial position and per formance.2. Financial Performance Overview2.1 Revenue and Net Income- Revenue: [Amount] for the period [Start Date] to [End Date], representing a [Percentage] increase/decrease from the previous year.- Net Income: [Amount] for the period [Start Date] to [End Date], representing a [Percentage] increase/decrease from the previous year.2.2 Earnings Per Share (EPS)- EPS: [Amount] for the period [Start Date] to [End Date], representing a [Percentage] increase/decrease from the previous year.2.3 Gross Margin- Gross Margin: [Percentage] for the period [Start Date] to [End Date], indicating the percentage of revenue remaining after accounting for the cost of goods sold.2.4 Operating Margin- Operating Margin: [Percentage] for the period [Start Date] to [End Date], reflecting the company’s profitability from its core operations.3. Liquidity Analysis3.1 Current Ratio- Current Ratio: [Ratio] for the period [Start Date] to [End Date], indicating the company’s ability to cover its short-term liabilities with its current assets.3.2 Quick Ratio- Quick Ratio: [Ratio] for the period [Start Date] to [End Date], providing a more stringent measure of liquidity by excluding inventory from current assets.3.3 Cash Flow from Operations- Cash Flow from Operations: [Amount] for the period [Start Date] to [End Date], showing the cash generated from the company’s core operations.4. Solvency Analysis4.1 Debt-to-Equity Ratio- Debt-to-Equity Ratio: [Ratio] for the period [Start Date] to [End Date], indicating the proportion of debt to equity used to finance the company’s assets.4.2 Interest Coverage Ratio- Interest Coverage Ratio: [Ratio] for the period [Start Date] to [End Date], measuring the company’s ability to cover its interest expenses with its operating income.5. Profitability Analysis5.1 Return on Assets (ROA)- ROA: [Percentage] for the period [Start Date] to [End Date],reflecting the company’s efficiency in using its assets to generate profits.5.2 Return on Equity (ROE)- ROE: [Percentage] for the period [Start Date] to [End Date],indicating the return on investment for shareholders.6. Investment Activities6.1 Capital Expenditures- Capital Expenditures: [Amount] for the period [Start Date] to [End Date], representing the company’s investments in long-term assets.6.2 Dividends Paid- Dividends Paid: [Amount] for the period [Start Date] to [End Date], showing the cash distributed to shareholders.7. Key Strengths- Strong Revenue Growth: The company has demonstrated consistent revenue growth over the past few years.- Solid Profit Margins: The company maintains healthy profit margins, indicating efficient operations.- Robust Cash Flow: The company has generated substantial cash flow from operations, providing financial flexibility.8. Key Weaknesses- High Debt Levels: The company has a high debt-to-equity ratio, which may increase financial risk.- Dependence on Key Customers: The company’s revenue is heavily reliant on a few key customers, which could be a potential risk.- Competition: The company operates in a highly competitive industry, which may impact its profitability.9. Areas of Concern- Regulatory Changes: Changes in regulations could impact the company’s operations and profitability.- Economic Downturn: An economic downturn could negatively affect the company’s revenue and profitability.- Technological Disruption: The company may face challenges from technological advancements that disrupt its business model.10. Conclusion[Company Name] has demonstrated strong financial performance, with robust revenue growth and healthy profit margins. However, the company also faces certain risks and challenges, including high debt levels and dependence on key customers. Stakeholders should closely monitor the company’s liquidity, solvency, and profitabi lity to ensure its long-term financial health.11. Recommendations- Reduce Debt Levels: The company should focus on reducing its debt-to-equity ratio to mitigate financial risk.- Diversify Customer Base: The company should work on diversifying its customer base to reduce dependence on key customers.- Invest in Research and Development: The company should invest in research and development to stay competitive in a rapidly evolving industry.Appendix- Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement)- Key Financial Ratios- Industry Comparison---This template provides a comprehensive framework for analyzing a company’s financial report. It can be customized to fit the specific needs of the analysis and to include additional information as required.第2篇Executive SummaryThis report provides an in-depth analysis of the financial performance of [Company Name] for the fiscal year [Year]. The analysis covers key financial metrics, profitability, liquidity, solvency, and efficiency ratios, as well as a comparative study with industry benchmarks. The report aims to offer insights into the company's financial health, performance trends, and potential areas of improvement.1. Introduction[Company Name] is a [brief description of the company's industry and business activities]. The company operates in a highly competitive market and has been experiencing [mention any recent developments or market trends]. This report is prepared to evaluate the company's financial position and performance over the fiscal year [Year].2. Financial Statement OverviewThe following sections provide a summary of the company's financial statements for the fiscal year [Year].2.1 Income StatementThe income statement shows the company's revenues, expenses, and net income over the fiscal year [Year]. Key points to consider include:- Revenue Growth: Compare the revenue for the current year with the previous year to determine if there is an increase or decrease in sales.- Expense Analysis: Examine the cost of goods sold, operating expenses, and other expenses to identify any trends or anomalies.- Net Income: Calculate the net income by subtracting total expenses from total revenue and analyze the trend over the years.2.2 Balance SheetThe balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time. Key points to consider include:- Assets: Analyze the composition of assets, including current assets, fixed assets, and intangible assets.- Liabilities: Review the company's short-term and long-term liabilities to assess its financial obligations.- Equity: Evaluate the changes in equity over time, including retained earnings and additional paid-in capital.2.3 Cash Flow StatementThe cash flow statement tracks the inflow and outflow of cash from the company's operating, investing, and financing activities. Key points to consider include:- Operating Cash Flow: Assess the cash generated from the company's core operations.- Investing Cash Flow: Analyze the cash used for investments, such as purchasing new assets or selling existing assets.- Financing Cash Flow: Review the cash used for financing activities, such as issuing or repurchasing stock, and taking on or repaying debt.3. Financial Ratio AnalysisThis section presents an analysis of various financial ratios to evaluate the company's financial performance and health.3.1 Liquidity RatiosLiquidity ratios measure the company's ability to meet its short-term obligations. Key ratios to consider include:- Current Ratio: Compare current assets to current liabilities to determine the company's short-term solvency.- Quick Ratio: Calculate the quick ratio by excluding inventory from current assets to assess the company's ability to meet short-term obligations without relying on inventory.- Working Capital: Calculate the difference between current assets and current liabilities to determine the company's working capital.3.2 Solvency RatiosSolvency ratios measure the company's long-term financial stability. Key ratios to consider include:- Debt-to-Equity Ratio: Compare the company's total debt to its equity to assess its leverage.- Interest Coverage Ratio: Calculate the interest coverage ratio by dividing earnings before interest and taxes (EBIT) by interest expense to determine the company's ability to cover its interest payments.- Times Interest Earned: Calculate the times interest earned by dividing EBIT by interest expense to assess the company's ability to generate sufficient income to cover its interest obligations.3.3 Profitability RatiosProfitability ratios measure the company's ability to generate profits from its operations. Key ratios to consider include:- Net Profit Margin: Calculate the net profit margin by dividing net income by revenue to determine the company's profitability.- Return on Assets (ROA): Calculate the ROA by dividing net income by total assets to assess the company's efficiency in using its assets to generate profits.- Return on Equity (ROE): Calculate the ROE by dividing net income by shareholders' equity to assess the company's profitability from the perspective of its equity holders.3.4 Efficiency RatiosEfficiency ratios measure how effectively the company uses its resources to generate revenue. Key ratios to consider include:- Inventory Turnover: Calculate the inventory turnover by dividing the cost of goods sold by average inventory to assess how efficiently the company manages its inventory.- Accounts Receivable Turnover: Calculate the accounts receivable turnover by dividing net credit sales by average accounts receivable to assess how efficiently the company collects payments from its customers.- Fixed Asset Turnover: Calculate the fixed asset turnover by dividing sales by average fixed assets to assess how efficiently the company uses its fixed assets to generate revenue.4. Comparative AnalysisThis section compares the company's financial ratios with industry benchmarks to assess its relative performance.4.1 Industry BenchmarksProvide a comparison of the company's financial ratios with industry averages to identify any areas where the company is performing better or worse than its peers.4.2 Peer Group AnalysisSelect a group of similar companies and compare their financial ratios to identify the company's competitive position within the industry.5. ConclusionBased on the analysis of the company's financial statements and ratios, the following conclusions can be drawn:- Overall Performance: [Summarize the company's overall financial performance, including profitability, liquidity, solvency, and efficiency].- Areas of Strength: [Identify the company's areas of strength, such as high profitability, strong liquidity, or efficient operations].- Areas for Improvement: [Identify the company's areas for improvement, such as reducing debt levels, improving liquidity, or increasing efficiency].6. RecommendationsBased on the analysis, the following recommendations are made:- Strategic Actions: [Suggest strategic actions the company can take to improve its financial performance, such as expanding into new markets or improving cost management].- Operational Improvements: [Recommend operational improvements to enhance efficiency and productivity].- Financial Decisions: [Advise on financial decisions that can strengthen the company's financial position, such as refinancing debt or investing in growth opportunities].7. AppendicesThe appendices provide additional supporting information, such as detailed financial statements, calculations of financial ratios, and industry data.---This template serves as a comprehensive guide for analyzing a company's financial report. It can be customized to suit the specific needs of the analysis and to incorporate additional information or metrics as required.第3篇Executive SummaryThis report provides a comprehensive analysis of the financial performance of [Company Name] for the fiscal year ending [Date]. The analysis covers key financial statements, including the balance sheet, income statement, and cash flow statement. The report aims to evaluatethe company's profitability, liquidity, solvency, and efficiency, and to provide insights into its financial health and future prospects.I. Introduction[Company Name] is a [brief description of the company’s industry and business]. The company has been operating in the market for [number of years], and has established itself as a [mention any significant market position or achievements]. This report aims to analyze the financial performance of the company over the fiscal year, providing stakeholders with a clear understanding of its financial health and strategic direction.II. Financial Statements AnalysisA. Balance Sheet Analysis1. Assets Analysis- Current Assets: The current assets of [Company Name] include [list current assets like cash, receivables, inventory, etc.]. An analysis of the trends in current assets can provide insights into the company's liquidity position. For instance, an increasing trend in accounts receivable might indicate a growth in sales, but it could also suggest a longer collection period, which might be a concern.- Fixed Assets: The fixed assets of [Company Name] consist of [list fixed assets like property, plant, and equipment]. An analysis of the depreciation expense and the useful life of these assets can help in understanding the company's investment in long-term assets.- Intangible Assets: [Company Name] has [mention any intangible assets like patents, trademarks, etc.]. An assessment of the value and usage of these assets can provide insights into the company's competitive advantage.2. Liabilities Analysis- Current Liabilities: The current liabilities of [Company Name] include [list current liabilities like accounts payable, short-termloans, etc.]. An analysis of the trends in current liabilities can provide insights into the company's short-term financial obligations and its ability to meet these obligations.- Long-term Liabilities: The long-term liabilities of [Company Name] consist of [list long-term liabilities like long-term loans, bonds, etc.]. An analysis of these liabilities can help in understanding the company's capital structure and its ability to meet long-term financial obligations.3. Equity Analysis- Shareholder’s Equity: The shareholder’s equity of [Company Name] includes common stock, retained earnings, and other equity accounts. An analysis of the changes in equity can provide insights into the company's profitability and its dividend distribution policies.B. Income Statement Analysis1. Revenue Analysis- Revenue Trends: An analysis of the revenue trends over the fiscal year can provide insights into the company's sales performance. An increasing trend in revenue might indicate a successful sales strategy, while a decreasing trend might suggest a need for a new marketing approach.- Revenue Composition: An analysis of the revenue composition can provide insights into the company's dependence on different productlines or services. For instance, if the company is heavily reliant on a single product line, it might be vulnerable to changes in market demand for that product.2. Expense Analysis- Cost of Goods Sold (COGS): An analysis of the COGS can provide insights into the company's cost structure and its efficiency in producing goods or services.- Selling, General, and Administrative Expenses (SG&A): An analysis of SG&A expenses can provide insights into the company's operating efficiency and its marketing and administrative strategies.3. Profitability Analysis- Net Profit Margin: The net profit margin can be calculated by dividing net income by revenue. This metric provides an indication of the company's profitability.- Return on Assets (ROA): The ROA can be calculated by dividing net income by total assets. This metric provides an indication of the company's efficiency in using its assets to generate profits.C. Cash Flow Statement Analysis1. Operating Cash Flow: The operating cash flow provides insights into the cash generated from the company's core business operations. A positive operating cash flow is generally a good sign, indicating that the company can generate enough cash to sustain its operations.2. Investing Cash Flow: The investing cash flow provides insights into the cash used for or generated from investments in assets, such as property, plant, and equipment, and acquisitions.3. Financing Cash Flow: The financing cash flow provides insights into the cash used for or generated from financing activities, such as issuing or repurchasing shares, and taking on or repaying debt.III. Financial Ratios AnalysisThis section presents a summary of key financial ratios that provide a more detailed view of the company's financial performance.1. Liquidity Ratios- Current Ratio: Indicates the company's ability to meet short-term obligations.- Quick Ratio: A more stringent measure of liquidity, excluding inventory.2. Solvency Ratios- Debt-to-Equity Ratio: Indicates the proportion of debt used to finance the company's assets.- Interest Coverage Ratio: Indicates the company's ability to meetits interest payments.3. Profitability Ratios- Gross Margin: Indicates the company's ability to maintain a healthy profit margin on its sales.- Net Profit Margin: Indicates the company's overall profitability.- Return on Equity (ROE): Indicates the return earned on the shareholders' equity.4. Efficiency Ratios- Inventory Turnover: Indicates how quickly the company sells its inventory.- Receivables Turnover: Indicates how quickly the company collectsits receivables.IV. ConclusionThe financial analysis of [Company Name] for the fiscal year ending [Date] indicates that the company has demonstrated strong profitability and liquidity. The company has maintained a healthy balance between debt and equity, and has generated positive cash flow from its operations. However, there are areas of concern, such as the increasing trend in accounts receivable, which might require further investigation and action.Based on the analysis, the following recommendations are made:- Improving Collections: The company should implement strategies to improve its collections process and reduce the average collection period.- Cost Optimization: The company should continue to optimize its cost structure to improve profitability.- Diversification: The company should consider diversifying its product lines or services to reduce dependence on a single market segment.This report provides a comprehensive overview of [Company Name]'s financial performance and offers insights that can guide strategic decision-making and future growth.V. AppendicesThis section includes additional supporting data and analyses, such as detailed financial statements, variance analysis, and industry benchmarks.---This template is a starting point for analyzing a financial report. It can be customized based on the specific needs of the analysis and the nature of the company being evaluated.。
(完整word版)财务报表分析外文文献及翻译
Review of accounting studies,2003,16（8)：531—560 Financial Statement Analysis of Leverage and How It Informs About Protability and Price-to-Book RatiosDoron Nissim，Stephen。
PenmanAbstractThis paper presents a financial statement analysis that distinguishes leverage that arises in financing activities from leverage that arises in operations. The analysis yields two leveraging equations，one for borrowing to finance operations and one for borrowing in the course of operations。
These leveraging equations describe how the two types of leverage affect book rates of return on equity。
An empirical analysis shows that the financial statement analysis explains cross-sectional differences in current and future rates of return as well as price-to—book ratios, which are based on expected rates of return on equity。
The paper therefore concludes that balance sheet line items for operating liabilities are priced differently than those dealing with financing liabilities。
(财务分析)财务状况分析(英文版)
（财务分析）财务状况分析（英文版）FinancialStatementAnalysis Todeveloptechniquesforevaluatingfirmsusingfinancials tatementanalysisforequityandcreditanalysis. Integratesfinancialstatementanalysiswithcorporatefin ance,accountingandfundamentalanalysis. Adoptsactivistpointofviewtoinvesting:themarketmaybei nefficientandthestatementsmaynottellallthetruth. WhatWillYouLearnFromtheCourse •Howstatementsaregenerated •Theroleoffinancialstatementsindeterminingfirms’va lues •Howtopullapartthefinancialstatementstogetattherele vantinformation•Howratioanalysisaidsinvaluation •Therelevanceofcashflowandaccrualaccountinginformat ion•HowtocalculatewhattheP/Eratioshouldbe?•Howtocalculatewhattheprice-to-bookratio? NeedforfinancialstatementanalysisGAAP–ComplexEconomiceventsaboutthefirmtobereportedtothepublic RelevancevsReliabilityReporting:RecognitionvsDisclosure(where)UsersofFirms’FinancialInformationEquityInvestorsInvestmentanalysisLongtermearningspower Managementperformanceevaluation AbilitytopaydividendRisk–especiallymarketDebtInvestorsShorttermliquidityProbabilityofdefaultLongtermassetprotectionCovenantviolationsUsersofFirms’FinancialInformationManagement:Strategicplanning;Investmentinoperations; PerformanceEvaluationLitigants-DisputesovervalueinthefirmCustomers-SecurityofsupplyGovernments:PolicymakingandRegulation–Taxation–GovernmentcontractingEmployees:Securityandremuneration Investorsandmanagementaretheprimaryusersoffinancials tatementsFundamentalAnalysisStep1-KnowingtheBusiness•TheProducts;TheKnowledgeBase•TheCompetition’TheRegulatoryConstraintsStep2-AnalyzingInformation •InFinancialStatements •OutsideofFinancialStatementsStep3-ForecastingPayoffs•MeasuringValueAdded•ForecastingValueAddedStep4-ConvertForecaststoaValuationStep5-TradingontheValuation•OutsideInvestor:CompareValuewithPriceto;BUY,SELL,o rHOLD•InsideInvestor:CompareValuewithCostto;ACCEPTorREJE CTStrategyAvaluationmodelguidestheprocess:Forecastingisatthehe artoftheprocessandavaluationmodelspecifieswhatistobe forecasted(Step3)andhowaforecastisconvertedtoavaluation(Step4).Whatistobeforecasted(Step3)dictatestheinf ormationisimplied?BalanceSheet•Assets(SFAC6):“probablefutureeconomicbenefitso btainedorcontrolledbyaparticularentityasaresultofpas ttransactionorevents•--noreferencetorisk(eg,assetssoldbutinwhichenti tyretainsarisk)•Liabilities(SFAC6):‘probablefuturesacrificeofe conomicbenefitsarisingfrompresentobligationsofaparti cularentitytotransferassetsorprovideservicestoothere ntitiesinthefutureasaresultofpasttransactionsorevent s”--notalwaysfollowed(eg,certainleasesand,untilrecentl y,pensionbenefits)•Equity(SFAC6):theresidualinterestinthenetassets ofanentitythatremainsafterdeductingitsliabilities”•--doesnothandlesituationswhereasourceofcapitalh aselementsofdebt&equity(eg,convertibles)•Classifiedbyliquidity•CA:convertedtocashorusedwithin1-yearoroperatingcycle(iflonger)•CL:obligationsexpectedtobesettledwithin1-yearor operatingcycle•TangibleA&Lreportedaboveintangibles(goodwill,co ntingentliabilities)MeasurementofAssets&Liabilities•HistoricalCost,formostcomponentsofBalanceSheet •Maybeatmarketunder“lowerofcostormarketrule”•Reversalsofpriorwritedownsallowedformarketablee quitysecuritiesbutnotforinventories •Financialservicefirms(banks,brokerage,insurance)r eportcertainA&Latmarket•A&Lofforeignaffiliatesreportedatend-of-periodX-rateoracombinationofitandspecifiedhistoricalX-rates •Intangibleassetshaveuncertainandhardtomeasurebe nefitsandarereportedonlywhenacquiredviaa“purchaseme thod”acquisition--brandnames--whenreported,calledGoodwill,Patents,etc.OrganizationalCapitala.Thewholeisworthmorethanthesumofthepartsb.ReturnstoEntrepreneurshipc.Difficulttoseparatefromthefirmasagoingconcernd.Canbeestimatedonlybyexaminingtheearningpowerofthecompany SourcesofOrganizationalCapitalValuesa.Long-termrelationshipsb.Reputational“brandname”capitalc.Growthoptionsworkofsuppliersanddistributors MoreonOrganizationalCapitala.Itisdifficulttoseparatethefirm’sorganizationalcapitalfro mthefirmasanongoingconcernb.Thevalueofabrandnameisnotreflectedinthereplacementcostofa ssetsc.Canonlybeestimatedbyexaminingtheearningpowerofthecompany( DCF)AdjustmentstoBookValueEstimateReplacementCostEstimateLiquidationValueDrawbacksDoadjustedbookvaluesreflectmarketvalues? Adjustedbookvaluesdonotconsiderorganizationalcapital DrawbacksofAdjustments Itisoftendifficulttodetermineifwehavemadethecorrectadjustme ntsAdjustmentsoftenfailtoconsiderthevalueofoff-balancesheetite msReplacementCostNouniversalagreementCanusepriceindexCPI,PPI,GDPimplicitdeflatorIgnoresorganizationalcapitalLiquidationValueSecondarymarketsdonotexistAssetspecificityContestablemarketsIncomestatementNetSalesCostofGoodsSoldGrossProfitSelling&Administrativeexpenses AdvertisingLeasepayments Depreciationandamortization RepairsandmaintenanceOperatingProfitOtherincome(expense)InterestincomeInterestexpense EarningsbeforeIncometaxes IncometaxesNetearnings StatementofConsolidatedRetainedEarnings RetainedearningsatbeginningofyearNetearnings CashDividends RetainedearningsatendofyearIncomeStatement•BasedonAccrualaccounting •BasedonMatchingPrinciple•Revenues(SFAC6)“inflowsofanentityfromdeliverin gorproducinggoods,renderingservices,orcarryingoutoth eractivitiesthatconstitutetheentitiesongoingmajororc entraloperations”•Expenses(SFAC6)“outflowsfromdeliveringorproduc inggoods,renderingservices,orcarryingoutotheractivit iesthatconstitutetheentitiesongoingmajororcentralope rations”•COMPREHENSIVEINCOMECONCEPT“thechangeinequityfr omtransactionsfromnon-ownersources.Itincludesallchan gesinequityduringaperiodexceptthoseresultingfrominve stmentsbyownersanddistributionstoowners”•Gains“Increasesinequityfromperipheralorinciden taltransactionsofanentityexceptthosethatresultfromre venuesorinvestmentbyowners.”•Losses“Decreasesinequityfromperipheralorincidentaltransactionsofanentityexceptthosethatresultfromr evenuesorinvestmentbyowners.”Revenues+Otherincomeandrevenues-Expenses=IncomefromCONTINUINGOPERATIONSUnusualorinfrequentevents=Pretaxearningsfromcontinuingoperations-Incometaxexpense=Aftertaxearningsfromcontinuingoperations*Discontinuedoperations(netoftax)*Extraordinaryoperations(netoftax)*Cumulativeeffectofaccountingchanges(netoftax)*=NetIncome**Pershareamountsarereportedforeachoftheseitems Highqualityincomestatementreflectrepeatableincomesta tementGainfromnon-recurringitemsshouldbeignoredwhene xaminingearnings Highqualityearningsresultfromtheuseofconservat iveaccountingprinciplesthatdonotoverstaterevenuesorunderstatecostsWhattodo?Restatenetincomeasifrealisticaccountingestimateswe reused.6.Earningsthathavebeenartificiallysmoothedormanaged. Whattowatchfor?a.Revenuereflectedearlierorlaterthantherealistictimeperiodb.Shiftingofexpenseamongreportingperiodsc.Smoothlyrisingearningstrendd.Sharpincreaseordecreaseinsalesinthelastquarteroftheyearsa sreflectedinthe4th quarterincomestatemente.Tradingofinvestmentsecuritiesamongaffiliatedcompaniesf.Significantmodificationinestimatedliabilityaccountsinthel astquarterg.Writingdownagoodasset(inventory)andsellingitnextyeartosho whigherearningsh.The“bigbath”,inwhicheverythingiswrittenoffinareallybady earsothatitwillbeeasiertoshowgoodprofitsinthefollowingyears.T hissometimesoccurswhennewmanagementtakesoverandwishestoblam eoldmanagementforpoorprofitsorwhenearningsarealreadysolowth attheirfurtherreductionmynothavesignificantimpactWhattodo?Lookatthefunctionalrelationshipofsalesandnetincome overtime.Aninconsistentrelationshipmaybeamanipulatorindicat or.Restateearningsbytakingoutprofitincrementsorreductionsdu etoincomemanagementploys7.Deferralofcoststhatdonothavefutureeconomicbenef itWhattowatchfora.Inventoryofunsalableitemsinviewofcurrentenvironment(8trac ktapes,typewriters,largeautomobilesduringoilshortage)b.Suddenwrite-offsofinventoryc.Goodwillonthebalancesheetbutthecompanyhasnone(operatingat losses,significantdeclineinmarketshare,badpublicity)d.Coststhatarecurrentlycapitalizedwheninprioryears,theywere expensed(e.g.Toolingcostsininventory)Whattodo Restatenetincomeasiftheunrealisticdeferralhadnotbeenmade.8.UnjustifiedChangesinAccountingPrinciplesandEstimat esWhattowatchfora.Afirmhasapasthistoryofmakingfrequentaccountingchangesb.Accountingchangesthatcreateearningsgrowthc.Thecompanyfirestheauditorandhiresanotheronebecauseofadisa greementoveraproposedaccountingchange.Whattodoa.Determinewhethertheaccountingchangeisjustifiedbyseeingifi tconfirmstorequirementsinFASBstatements,IndustryAuditGuides &IRSregulationsb.Ascertainwhethertheaccountingchangeispreferable,givennatu reofbusiness(e.g.,decreasingthelifeofacomputerbecauseofnewt echnologicaladvancesintheindustry)c.Doeschangemakesense?(Loweringbaddebtexpenseas%ofaccountsr eceivabledoesNOTmakesensewhencustomerdefaultsarerising)d.Ifaccountingchangeresultsinincreasingnetincome,restateear ningsastheywouldhavebeeniftheoldmethodhadbeenretained.9.PrematureorBelatedRevenueRecognitionWhattowatchfora.Accruingunbilledsalesb.Isthereasufficientprovisionforfuturelossesinconnectionwit htherecognitionofrevenue?c.Improperdeferralofrevenuetoalaterperiodd.ReversalofpreviouslyrecordedprofitsWhattodo-Restaterevenueasifproperrevenuerecognitionweremade10.UnderaccrualorOveraccrualofExpenses Whattowatchfora.Failuretoincurnecessarymaintenanceexpendituresb.InadequatewarrantyprovisionWhattodo-Adjustnetincomefordifferencebetweenexpenseprovided &normalexpense11.ImproperAccountingPoliciesWhattowatchfora.Reductionofexpenseforoverlyanticipatedrecoveriesofexcessc ostsduetomodificationsingovernmentcontractsb.Substantialprovisionforfuturecostsinpresentyear(e.g.warra nties)becausefirmwasremissinmakingsufficientprovisionsinpri oryearsWhattodo-restateearningofyearsaffectedsocandeterminepropere arningstrend12.ModificationinLoanAgreementsDuetoFinanciallyWea kBorrowersWhattowatchfor-loweringofinterestonloanWhattodo-downwardlyadjustnetincomeforinclusionofaccruedinte restincomeonriskyloans13.Changeincorporatepolicyforthecurrentyear,whichi mpactsearnings(e.g.,writinginsurancerenewalcontracts inthe4th quarterofthecurrentyearratherthanthe1st quarte rofthenextyear).14.UnjustifiedCutbackinDiscretionaryCosts Whattowatchfora.Decliningtendindiscretionarycostsasa%ofnetsalesortoassets towhichtheyapplyb.Vacillationintheratioofdiscretionarycoststosalesovertheye arsasthismayindicatemanagementofearningsWhattodoa.Determinetrendindiscretionarycostsovertimethroughuseofind exnumbersb.Determineratioofdiscretionarycoststosalesoverlast5years.A nexampleisratioofrepairs&maintenancetosalesand/ortofixedass ets15.BookIncomeSubstantiallyExceedsTaxableIncome Whattowatchfor-Acontinual,significantriseindeferredincometa xcreditaccountduetoliberalaccountingpolicies16.ResidualIncomethatisSubstantiallylessthanNetInc ome ResidualIncomemaybedeterminedbydeductingtheimputedcostofcapital(weightedaveragecostofcapitaltimetotalassets)fromnetinc ome.Whattodo-Determineratioovertimeofresidualincometonetincome17.AHighDegreeofUncertaintyAssociatedwithIncomeSta tementComponentsWhattowatchfora.Firmengagedinlong-termactivitiesrequiringmanyestimatesini ncomemeasurementprocessb.Significantfuturelossprovisionsc.Estimateshavebeenconsistentlymateriallydifferentfromactua lexperienceWhattodopareovertimefirm’sestimatedliabilityprovisionswithact uallossesoccurring.–e.g.,warrantycost sb.Determinewhatpercentoftotalassetsareintangible,whichbythe irnaturerequirematerialestimatestobemade18.UnreliablyReportedEarningsWhattowatchfora.Poorsystemofinternalcontrolbecauseitinferspossibleerrorsi nreportingsystemb.HighturnoverrateinauditorsPoliciesthatlowerqualityofearnings1.reduceexpenseforexpectedrecoveryofexcesscostsresul tingfromchangesingovernmentcontract–onlycollected65 %2.unrealisticdeclineinpercentageofsalesallowancetosa les3.provisionforfuturecosts(warranties)highbecauseunde rprovidedinpast4.“BigBath”5.re-negotiatetermsofloanwithweakborrower6.transferfrom1subtoanother7.sellsecuritiesatagainandbuythembackathigherprice-h avetorecognizelossHowcompanysmoothesearningsChecklist1Doesleveldiscretionarycostconformtopast2Isthereadropintrendofdiscretionarycostsaspercen tageofsales3Doescostcuttingprograminvolvesignificantcutindi scretionarycosts4Doescostcuttingprogrameliminatefat?5Dodiscretionarycostsshowfluctuationsrelativetos ales6Isthereasizablejumpindiscretionarycosts? SummarychecklistofkeypointsA.Nosingle“real”netincomefigureexistsB.Theanalystmustadjustreportednetincometoanearningsf igurethatisrelativetohim/her.C.Earningsqualityevaluationisimportantininvestment,c redit,audit&managementdecisionmaking.D.Appraisingthequalityofearningsrequiresanexaminatio nofaccounting,financial,economicandpoliticalfactors.E.EarningsqualityelementsarebothquantitativeandqualitativeCashflowstatement1.SCF(StatementofCashFlows)addsinsituationswhereBalanceShee tandIncomeStatementprovidelimitedinsight2.SCFhelpsidentifythecategoriesintowhichcompaniesfit3.Financialflexibilityisausefulweapontogainacompetitiveadva ntageandisbestmeasuredbystudyingtheSCF ThekeyanalyticallessonsThecashflowstatement–nottheincomestatement–providesthebes tinformationaboutahighlyleveragedfirm’sfinancialhealth Thereisnoadvantageinshowinganaccountingprofit,themainconseq uenceofwhichisincurringtaxes,resulting,inturn,inreducedcash flowsCashFlowandCompanyLifeCycleCashFlowandStart-upCompanies Littleornooperatingcashflows Largecashoutflowsforinvestingactivities Largeneedforexternalfinancing(mostlyfromissuingcommonstock, issuelongtermdebt) CashFlowsandEmergingGrowthCompaniesSomeoperatingcashflow(notenoughtosustaingrowth) Largecashoutflowstoexpandactivities Requirescashflowsfromfinancing Paybacksomeshort-termdebt,issuesomecommonstock CashFlowsandEstablishedGrowthCompanies Fundgrowthfromoperatingcashflow Depreciationissubstantial Repaymentoflongtermdebt,begintopaydividend CashFlowsandMatureIndustryCompanies Modestcapitalrequirements Depreciationandamortizationissignificant Netnegativereinvestment Largedividendpayout,reductioninlongtermdebt CashFlowsandDecliningIndustryCompanies Netcashuser(similartoemerginggrowth) Lowerdividends,Slimoperatingcashflows sellassetsCashFlowsandFinancialFlexibility SafetyofdividendFinancegrowthwithinternalfunds MeetotherfinancialobligationsFinancialRatiosAnalysis:Ratiosaremoreinformativethanrawn umbers1.Ratiosprovidemeaningfulrelationshipsbetweenindividualvalu esinthefinancialstatements2.Ratioshelpinvestorsevaluatemanagement3.Enablecomparisonofafirm’sperformanceto TheaggregateeconomyItsindustryorindustriesItsmajorcompetitorsItspastperformanceRatiosandFinancialAnalysis Comparabilityamongfirmsofdifferentsizes ProvidesaprofileofthefirmCaution:EconomicassumptionofLinearity–Proportionality Nonlinearitycancauseproblems:Fixedcosts,EOQforinventoriesBenchmarks;IshighCurrentratiogood?Forwhom?Industry-widenorms.AccountingMethods;Timing&WindowDressing LIMITATIONS1.Notheorytodefine‘good’2.Historical,noteconomic3.Mostasofasinglepointintime4.Seasonaloperations5.One-timeeffects6.DesignedformanufacturersLiquidityRatios:attempttomeasuretheabilitytopayobligationss uchascurrentliabilitiesandthepoolofassetsavailabletocoverth eobligations.Liquidityistheabilityofanassettobeconvertedtoc ashquicklyatlowcost.Convertinganassettocashoccursinoneoftwo ways.Selltheasset,hopingithasreasonableliquidity,orinthecas eofafinancialasset,likeaccountsreceivableorTreasurybill,mat uritybringscash.Workingcapitalcirculatesfrominventorytoacco untsreceivabletocash,etc.Accountingvalueestimatesofliquidas setsarereasonableestimatesoftheirvalue.Currentassets(thepoolofcirculatingcashassetsavailabletobeal locatedtopaybills)minuscurrentliabilities(thepoolofobligati onsthebusinessmustpayinthenearfuture)isananalyticalamountca llednetworkingcapital(NWC).NWC=currentassets-currentliabilitiesNWC/totalassetratio=networkingcapital/totalassets Thecurrentratioistheclassicliquidityratio,butismerelyavaria tionoftheideaabove—whatpoolofcirculatingassetsisavailabler elativetothepoolofcurrentobligations:Currentratio=currentassets/currentliabilitiesQuickratio=(cash+marketablesecurities+accountsreceivable)/ currentliabilitiesCashratio=(cash+marketablesecurities)/currentliabilities Cashflowfromoperationratio=OCF/currentliabilitiesLeverageRatiosLeverageratiosaretwotypes:balancesheetratioscomparinglevera gecapitaltototalcapitalortotalassets,andcoverageratioswhich measuretheearningsorcash-flowtimescoverageoffixedcostobliga tions.BalancesheetratiosLong-termdebtratio=long-termdebt/(long-termdebt+equity) Debt-equityratio=long-termdebt/equityTotaldebtratio=totalliabilities/totalassets Acoverageratio,suchasthetimesinterestearnedratio,measuresan amountavailablerelativetoamountowed.Howmanytimesistheobliga tioncovered?Timesinterestearned=EBIT/interestexpense=(EAT+Tax+InterestExp)/interestexpense TimesCashflowcoverage=(OCF+Tax+InterestExp)/interestexpenseActivityRatios:Totalassetsturnover=Sales/Totalassets AccountsReceivableturnover=Sales/AR[DaysA/Routstanding=365/AccountsReceivableturnover] Inventoryturnover=Sales/AverageInventory,orCOGS/AverageInventory[InventoryConversion=365/Inventoryturnover] Payableturnover(deferral)=Purchase(orCOGS)/AP[DaysA/Poutstanding=365/Payableturnover]Note:CashCycle=InventoryConversion+DaysA/Routstanding–DaysA/PoutstandingProfitabilityRatios:referstosomemeasureofprofitrelativetore venueoranamountinvested. Thenetprofitmarginmeasurestheproportionofsalesrevenuethatis profitavailableforsourcesoffunds(EBIT-tax). Grossprofitmargin=grossprofit/salesOperatingprofitmargin=EBIT/salesNetprofitmargin=netincome/salesReturnonassets=(netincome+interest)/averagetotalassets Returnonequity=netincome/averageequityPayoutratio=dividends/netearningsPlowbackratio=1-payoutratio=(earnings–dividends)/(netearni ngs)=(earningsretainedinperiod)/(netearnings) Growthinequity=plowbackratioxROEMarketBasedRatios •ForpricinganIPOifbusinessgoingpublic•P/ERatioWhatinvestorsarewillingtopayfora$ofearnings(Curre nt/Forecast)WhatcreatesahighP/E?•Market/BookUsuallymuchdifferentthan1.•Price/CashFlowTheDuPontSystemisaprocessofanalyzingcomponentratios, (alsocalleddecomposition)oftheROAandROEtoexplainthei rlevelorchangesThreatsofentry:newentrantsbringtoanindustrynewcapacity,thed esiretogainmarketshare,andoftensubstantialresources.Priceca nbiddownorincumbent’scostsinflatedasaresult,reducingprofit ability.Barrierstoentry:A.Economicsofscalesdeterentrybyforcingtheentrantstocomeinat alargescaleandriskstrongreactionfromexistingfirmsorcomeinat asmallscaleandacceptacostdisadvantage.B.Productdifferentiation:productdifferentiationmeansthatest ablishedfirmshavebrandidentificationandcustomerloyalties.Di fferentiationcreatesabarriertoentrybyforcingentrantstospend heavilytoovercomeexistingcustomerloyalties.C.Capitalrequirement:theneedtoinvestlargefinancialresources inordertocompetecreatesabarriertoentry,particularlyifthecap italisrequiredforriskyorunrecoverableup-frontadvertisingorR &D.Capitalrequirementmaybealsoneededforcustomercredit,inven torystart-upcost,aswellasproductioncost.D.Switchingcosts:Abarriertoentryiscreatedbytheswitchingcost,t hatis,one-timecostfacingthebuyerofswitchingfromonesupplier’sproducttoanother’s.E.Accesstodistributionchannels:themorelimitedthewholesaleor retailchannelsforaproductareandthemoreexistingcompetitorsha vethesetiedup,obviouslythetougherentryintotheindustry.F.Costdisadvantagesindependentofscale:proprietaryproducttec hnology,favorableaccesstorawmaterials,favorablelocations,go vernmentsubsidy,andlearningorexperiencecurve.ernmentpolicy:。
(完整word版)财务报表中英文对照
财务报表中英文比较1.财产欠债表Balance Sheet项目钱币资本短期投资应收单据应收股利应收利息应收帐款其余应收款预支帐款期货保证金应收补助款应收出口退税存货此中：原资料产成品 (库存商品 )待摊花费待办理流动财产净损失一年内到期的长久债权投资其余流动财产流动财产共计长久投资：此中 : 长久股权投资长久债权投资*归并价差长久投资共计固定财产原价减：累计折旧固定财产净值减：固定财产减值准备固定财产净额固定财产清理工程物质在建工程待办理固定财产净损失固定财产共计无形财产此中 : 土地使用权递延财产（长久待摊花费）ITEMCashShort term investmentsNotes receivableDividend receivableInterest receivableAccounts receivableOther receivablesAccounts prepaidFuture guaranteeAllowance receivableExport drawback receivableInventoriesIncluding:Raw materialsFinished goodsPrepaid and deferred expensesUnsettled G/L on current assetsLong-term debenture investment falling due in a year Other current assetsTotal current assetsLong-term investment：Including long term equity investmentLong term securities investmentIncorporating price differenceTotal long-term investmentFixed assets-costLess:Accumulated DpreciationFixed assets-net valueLess:Impairment of fixed assetsNet value of fixed assetsDisposal of fixed assetsProject materialConstruction in ProgressUnsettled G/L on fixed assetsTotal tangible assetsIntangible assetsIncluding and use rightsDeferred assets此中 : 固定财产维修固定财产改进支出其余长久财产此中 : 特准贮备物质无形及其余财产共计递延税款借项财产总计Including:Fixed assets repairImprovement expenditure of fixed assetsOther long term assetsAmong it:Specially approved reserving materials Total intangible assets and other assets Deferred assets debitsTotal Assets财产欠债表 (续表 )Balance Sheet项目ITEM短期借钱Short-term loans对付票款Notes payable对付帐款Accounts payab1e预收帐款Advances from customers对付薪资Accrued payroll对付福利费Welfare payable对付利润 (股利 )Profits payab1e应交税金Taxes payable其余应交款Other payable to government其余对付款Other creditors预提花费Provision for expenses估计欠债Accrued liabilities一年内到期的长久欠债Long term liabilities due within one year其余流动欠债Other current liabilities流动欠债共计Total current liabilities长久借钱Long-term loans payable对付债券Bonds payable长久对付款long-term accounts payable专项对付款Special accounts payable其余长久欠债Other long-term liabilities此中 : 特准贮备资本Including:Special reserve fund长久欠债共计Total long term liabilities递延税款贷项Deferred taxation credit欠债共计Total liabilities*少量股东权益Minority interests实收资本 (股本 )Subscribed Capital国家资本National capital集体资本Collective capital法人资本Legal person"s capital此中 : 国有法人资本Including:State-owned legal person"s capital 集体法人资本Collective legal person"s capital个人资本Personal capital外商资本Foreign businessmen"s capital资本公积盈利公积此中 : 法定盈利公积公益金增补流动资本*未确认的投资损失（以未分派利润外币报表折算差额全部者权益共计欠债及全部者权益总计“-”号填列）Capital surplussurplus reserveIncluding:statutory surplus reservepublic welfare fundSupplermentary current capitalUnaffirmed investment lossRetained earningsConverted difference in Foreign Currency StatementsTotal shareholder"s equityTotal Liabilities&Equity2.利润表 NCOME STATEMENT项目产品销售收入此中：出口产品销售收入减：销售折扣与折让产品销售净额减：产品销售税金产品销售成本此中：出口产品销售成本产品销售毛利减：销售花费管理花费财务花费此中：利息支出( 减利息收入汇兑损失 (减汇兑利润 )产品销售利润加：其余业务利润营业利润加：投资利润加：营业外收入减：营业外支出加：从前年度损益调整利润总数减：所得税净利润)ITEMSSales of productsIncluding ： Export salesLess ：Sales discount and allowancesNet sales of productsLess ：Sales taxCost of salesIncluding ： Cost of export salesGross profit on salesLess ：Selling expensesGeneral and administrative expensesFinancial expensesIncluding ： Interest expenses(minusinterest ihcome)Exchange losses(minus exchange gains)Profit on salesAdd ： profit from other operationsOperating profitAdd ： Income on investmentAdd ： Non-operating incomeLess ：Non-operating expensesAdd ： adjustment of loss and gain for previous yearsTotal profitLess ：Income taxNet profit3.现金流量表Cash Flows Statement项目Items1.cash流量从经营活动： 1.Cash Flows from Operating Activities:01）所收到的现金从销售货物或供给劳务01)Cash received from sales of goods or rendering of services02）收到的租金02)Rental received增值税销售额收到退款的价值Value added tax on sales received and refunds of value 03）增值税缴纳03)added tax paid04）退回的其余税收和征费之外的增值税04)Refund of other taxes and levy other than value added tax07）其余现金收到相关经营活动07)Other cash received relating to operating activities 08）分，总现金流入量08)Sub-total of cash inflows09）用现金支付的商品和服务09)Cash paid for goods and services10）用现金支付经营租借10)Cash paid for operating leases11）用现金支付，并代表职工11)Cash paid to and on behalf of employees12）增值税购货支付12)Value added tax on purchases paid13）所得税的缴纳13)Income tax paid14）支付的税款之外的增值税和所得税14)Taxes paid other than value added tax and income tax17）其余现金支付相关的经营活动17)Other cash paid relating to operating activities18）分，总的现金流出18)Sub-total of cash outflows19）净经营活动的现金流量19)Net cash flows from operating activities2.cash 流向与投资活动： 2.Cash Flows from Investing Activities:20）所收到的现金回收投资20)Cash received from return of investments21）所收到的现金从分派股利，利润21)Cash received from distribution of dividends or profits 22）所收到的现金从国债利息收入22)Cash received from bond interest income现金净额收到的处理固定财产，无形财产Net cash received from disposal of fixedassets,intangible23）财产和其余长久财产23)assets and other long-term assets26）其余收到的现金与投资活动26)Other cash received relating to investing activities 27）小计的现金流入量27)Sub-total of cash inflows用现金支付购建固定财产，无形财产Cash paid to acquire fixed assets,intangible assets 28）和其余长久财产28)and other long-term assets29）用现金支付，以获得股权投资29)Cash paid to acquire equity investments30）用现金支付收买债权投资30)Cash paid to acquire debt investments33）其余现金支付的相关投资活动33)Other cash paid relating to investing activities34）分，总的现金流出34)Sub-total of cash outflows35）的净现金流量，投资活动产生35)Net cash flows from investing activities3.cash 流量筹资活动： 3.Cash Flows from Financing Activities:36）的利润，从刊行股票36)Proceeds from issuing shares37）的利润，由刊行债券37)Proceeds from issuing bonds38）的利润，由借钱38)Proceeds from borrowings41）其余利润相关的融资活动41)Other proceeds relating to financing activities 42），小计的现金流入量42)Sub-total of cash inflows43）的现金偿还债务所支付的43)Cash repayments of amounts borrowed44）现金支付的花费，对任何融资活动44)Cash payments of expenses on any financingactivities45）支付现金，分派股利或利润45)Cash payments for distribution of dividends or profits 46）以现金支付的利息花费46)Cash payments of interest expenses47）以现金支付，融资租借47)Cash payments for finance leases48）以现金支付，减少注册资本48)Cash payments for reduction of registered capital 51）其余现金进出相关的融资活动51)Other cash payments relating to financing activities 52）分，总的现金流出52)Sub-total of cash outflows53）的净现金流量从融资活动53)Net cash flows from financing activities4.effect 的外汇汇率改动对现金54.Effect of Foreign Exchange Rate Changes on Cash 增添现金和现金等价物 Increase in Cash and Cash Equivalents增补资料Supplemental Information1.投资活动和筹资活动，不参加 1.Investing and Financing Activities that do not Involve in 现金收款和付款Cash Receipts and Payments56）偿还债务的转让固定财产56)Repayment of debts by the transfer of fixed assets 57）偿还债务的转移投资57)Repayment of debts by the transfer of investments 58）投资在形成固定财产58)Investments in the form of fixed assets59）偿还债务的转移库存量59)Repayments of debts by the transfer of investories2.reconciliation 净利润现金流量从经营2.Reconciliation of Net Profit to Cash Flows from Operating活动Activities62）净利润62)Net profit63）增补规定的坏帐或不良债务注销63)Add provision for bad debt or bad debt written off 64）固定财产折旧64)Depreciation of fixed assets65）无形财产摊销65)Amortization of intangible assets损失处理固定财产，无形财产Losses on disposal of fixed assets,intangible assets 66）和其余长久财产（或减：利润）66)and other long-term assets (or deduct:gains) 67）损失固定财产报废67)Losses on scrapping of fixed assets68）财务花费68)Financial expenses69）惹起的损失由投资管理（或减：利润）69)Losses arising from investments (or deduct:gains) 70） defered 税收抵免（或减：借记卡）70)Defered tax credit (or deduct:debit)71）减少存货（或减：增添）71)Decrease in inventories (or deduct：increase)72）减少经营性应收（或减：增添）72)Decrease in operating receivables (or deduct:increase)73）增添的经营对付账款（或减：减少）73)Increase in operating payables (or deduct:decrease)74）净支付的增值税（或减：利润净额74)Net payment on value added tax (or deduct:net receipts75）净经营活动的现金流量75)Net cash flows from operating activities 增添现金和现金等价物 Increase in Cash and Cash Equivalents76）的现金，在此限期结束76)cash at the end of the period77）减：现金期开始77)Less:cash at the beginning of the period78）加：现金等价物在此限期结束78)Plus:cash equivalents at the end of the period79）减：现金等价物期开始79)Less:cash equivalents at the beginning of the period80 ），净增添现金和现金等价物80)Net increase in cash and cash equivalents。
分析财务报告的模板英语(3篇)
第1篇---Executive SummaryThis document provides an in-depth analysis of the financial report for [Company Name], covering the period from [Start Date] to [End Date]. The analysis focuses on key financial metrics, profitability, liquidity, solvency, and efficiency, and offers insights into the company's financial health and performance.---1. Introduction1.1 Company Background[Provide a brief overview of the company, including its industry, size, and key products/services.]1.2 Purpose of AnalysisThe purpose of this analysis is to evaluate the financial performance and position of [Company Name] over the specified period, identify trends, and make recommendations for improvement where necessary.---2. Financial Highlights2.1 Revenue Analysis- Revenue Growth: Compare year-on-year revenue growth rates.- Revenue Composition: Analyze the breakdown of revenue byproduct/service lines.- Market Trends: Discuss any relevant market trends that may impact revenue.2.2 Profitability Analysis- Net Income: Examine the net income over the period and identify any significant changes.- Profit Margins: Calculate and analyze gross, operating, and net margins.- Profit Drivers: Identify the key factors contributing to changes in profitability.2.3 Liquidity Analysis- Current Ratio: Evaluate the company's short-term liquidity position.- Quick Ratio: Assess the company's ability to meet short-term obligations without relying on inventory.- Cash Flow: Analyze the cash flow statement to understand the company's cash inflows and outflows.2.4 Solvency Analysis- Debt-to-Equity Ratio: Assess the company's long-term financial stability.- Interest Coverage Ratio: Determine the company's ability to cover interest expenses.- Capital Structure: Analyze the company's capital structure and any changes over time.2.5 Efficiency Analysis- Inventory Turnover: Calculate and analyze the rate at which inventory is sold.- Accounts Receivable Turnover: Evaluate the efficiency of the company's receivables management.- Accounts Payable Turnover: Assess the company's ability to manage its payables effectively.---3. Detailed Financial Analysis3.1 Revenue Analysis- Year-by-Year Comparison: Provide a table showing revenue for each year and highlight any significant changes.- Product/Service Analysis: Break down revenue by product/service lines and discuss any shifts in demand or market share.3.2 Profitability Analysis- Net Income Trends: Plot a graph showing net income over the period and identify any patterns or anomalies.- Profit Margin Analysis: Calculate and compare gross, operating, and net margins over time.- Profit Drivers: Discuss the impact of key expenses (e.g., cost of goods sold, selling, general, and administrative expenses) on profitability.3.3 Liquidity Analysis- Current Ratio Analysis: Calculate and analyze the current ratio for each year and discuss any significant changes.- Quick Ratio Analysis: Calculate and analyze the quick ratio for each year and discuss any significant changes.- Cash Flow Analysis: Provide a detailed analysis of the cash flow statement, including operating, investing, and financing activities.3.4 Solvency Analysis- Debt-to-Equity Ratio Analysis: Calculate and analyze the debt-to-equity ratio for each year and discuss any significant changes.- Interest Coverage Ratio Analysis: Calculate and analyze the interest coverage ratio for each year and discuss any significant changes.- Capital Structure Analysis: Discuss any changes in the company's capital structure over time and their impact on financial stability.3.5 Efficiency Analysis- Inventory Turnover Analysis: Calculate and analyze the inventory turnover ratio for each year and discuss any significant changes.- Accounts Receivable Turnover Analysis: Calculate and analyze the accounts receivable turnover ratio for each year and discuss any significant changes.- Accounts Payable Turnover Analysis: Calculate and analyze the accounts payable turnover ratio for each year and discuss any significant changes.---4. Key Findings and Recommendations4.1 Key FindingsSummarize the key findings from the financial analysis, including any trends, strengths, and weaknesses identified.4.2 RecommendationsBased on the analysis, provide recommendations for improving the company's financial performance and position. These may include:- Revenue Growth Strategies: Suggest ways to increase revenue, such as expanding into new markets or developing new products/services.- Cost Reduction Initiatives: Identify areas where costs can be reduced without impacting quality or operations.- Liquidity Improvement: Propose strategies to improve the company's liquidity position, such as optimizing inventory levels or negotiating better payment terms with suppliers.- Solvency Enhancement: Recommend actions to strengthen the company's long-term financial stability, such as refinancing debt or improving capital structure.- Efficiency Improvements: Suggest ways to enhance operational efficiency, such as streamlining processes or investing in technology.---5. ConclusionThis financial report analysis provides a comprehensive overview of [Company Name]'s financial performance and position. By identifying key trends and making informed recommendations, this analysis aims to assist the company in achieving its financial goals and maintaining a competitive edge in the market.---Appendices- Financial Statements- Charts and Graphs- Additional Data and Analysis---Note: This template is intended to serve as a guide for analyzing financial reports. The specific content and structure may vary depending on the company and the nature of its business.第2篇---Title: Comprehensive Analysis of XYZ Corporation’s Financial Report for Fiscal Year [Year]Introduction:This document provides a detailed analysis of XYZ Corpor ation’s financial report for the fiscal year ending [Date]. The analysis covers key financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in equity. It aims toassess the company’s financial heal th, performance, and future prospects.---I. Overview of XYZ Corporation:Before diving into the financial analysis, it is essential to understand the background of XYZ Corporation. This section includes a brief history, business model, industry position, and major products/services.A. Company Background:- [Company’s history, establishment, and key milestones]- [Description of the company’s business model and value proposition]B. Industry Position:- [Market segment and industry overview]- [Company’s market share and competitive position]C. Major Products/Services:- [List of products/services offered]- [Description of the company’s product lifecycle and innovation strategy]---II. Financial Statements Analysis:A. Balance Sheet:1. Assets:- Current Assets:- [Analysis of cash and cash equivalents, accounts receivable, inventory, and other current assets]- [Assessment of liquidity ratios like current ratio and quick ratio]- Fixed Assets:- [Analysis of property, plant, and equipment, and intangible assets]- [Depreciation and amortization expenses]- Other Assets:- [Analysis of other assets, if any]2. Liabilities:- Current Liabilities:- [Analysis of accounts payable, short-term debt, and other current liabilities]- [Assessment of solvency ratios like current ratio and debt-to-equity ratio]- Long-term Liabilities:- [Analysis of long-term debt, deferred tax liabilities, and other long-term liabilities]3. Equity:- [Analysis of s hareholders’ equity, including common stock, retained earnings, and other reserves]- [Impact of stock issuances and buybacks]B. Income Statement:1. Revenue:- [Analysis of total revenue and revenue growth rate]- [Breakdown of revenue by product/service line, geographic region, or customer segment]2. Expenses:- Cost of Goods Sold (COGS):- [Analysis of COGS and its impact on gross profit margin]- Operating Expenses:- [Analysis of selling, general, and administrative expenses]- [Assessment of operating efficiency and cost control measures] - Non-operating Expenses:- [Analysis of interest expense and other non-operating expenses] 3. Profit:- Gross Profit:- [Analysis of gross profit margin and its trends over time]- Operating Profit:- [Analysis of operating profit margin and its drivers]- Net Profit:- [Analysis of net profit margin and its trends over time]C. Cash Flow Statement:1. Operating Cash Flow:- [Analysis of cash flow from operating activities]- [Assessment of cash-generating ability and sustainability]2. Investing Cash Flow:- [Analysis of cash flow from investing activities]- [Assessment of investment decisions and capital expenditures]3. Financing Cash Flow:- [Analysis of cash flow from financing activities]- [Assessment of capital structure and financing decisions]D. Statement of Changes in Equity:- [Analysis of changes in shareholders’ equity]- [Impact of stock issuances, dividends, and other equity transactions]---III. Key Financial Ratios Analysis:This section provides a comprehensive analysis of key financial ratios, including liquidity, solvency, profitability, and efficiency ratios.A. Liquidity Ratios:- Current Ratio- Quick Ratio- Cash RatioB. Solvency Ratios:- Debt-to-Equity Ratio- Interest Coverage Ratio- Debt RatioC. Profitability Ratios:- Gross Profit Margin- Operating Profit Margin- Net Profit Margin- Return on Assets (ROA)- Return on Equity (ROE)D. Efficiency Ratios:- Inventory Turnover Ratio- Receivables Turnover Ratio- Asset Turnover Ratio---IV. Conclusion:Based on the analysis of XYZ Corporation’s financial statements and ratios, the following conclusions can be drawn:- [Summary of the company’s financial h ealth and performance]- [Strengths and weaknesses identified]- [Opportunities and threats faced by the company]- [Recommendations for improvement and future strategies]---V. Appendices:- Detailed financial data tables- Graphs and charts illustrating financial trends- Additional analysis and calculations---This template provides a comprehensive framework for analyzing XYZ Corporation’s financial report. It ensures a thorough examination of the company’s financial health, performance, and future pro spects, enabling stakeholders to make informed decisions.第3篇Executive SummaryThe purpose of this analysis is to provide a comprehensive overview of the financial health and performance of [Company Name] for the fiscalyear ending [Date]. This report will cover key financial statements, including the balance sheet, income statement, and cash flow statement, and will provide insights into the company's profitability, liquidity, solvency, and efficiency.1. Introduction[Company Name] is a [brief description of the company's industry and primary business activities]. The company's financial reports for the fiscal year ending [Date] will be analyzed to assess its overall financial performance and position.2. Financial Statements Analysis2.1 Balance SheetThe balance sheet provides a snapshot of the company's financial position at a specific point in time. The following analysis will focus on key components of the balance sheet:Assets: Analyze the composition and trend of assets, including current assets (cash, receivables, inventory), fixed assets (property, plant, and equipment), and intangible assets (patents, trademarks, etc.).Liabilities: Examine the company's obligations, including current liabilities (short-term debt, accounts payable) and long-termliabilities (long-term debt, deferred tax liabilities).Equity: Evaluate the shareholders' equity, including common stock, retained earnings, and other reserves.2.2 Income StatementThe income statement shows the company's revenues, expenses, and net income over a specific period. This section will analyze the following aspects:Revenue: Assess the sources of revenue, growth trends, and changes in revenue structure.Cost of Goods Sold (COGS): Analyze the cost structure and identify any trends or anomalies in the cost of goods sold.Operating Expenses: Evaluate the efficiency of the company's operations by analyzing operating expenses, such as selling, general, and administrative expenses (SG&A).Net Income: Determine the company's profitability by examining net income and its components, such as interest expense and taxes.2.3 Cash Flow StatementThe cash flow statement provides information about the company's cash inflows and outflows over a specific period. This section will focus on the following:Operating Cash Flow: Analyze the cash generated from the company's core operations.Investing Cash Flow: Assess the company's investments in assets, such as property, plant, and equipment, and acquisitions.Financing Cash Flow: Evaluate the company's financing activities, including debt issuance, dividends, and stock repurchases.3. Financial Ratios AnalysisFinancial ratios are used to assess the company's financial performance and position. The following ratios will be analyzed:Liquidity Ratios: Evaluate the company's ability to meet short-term obligations, including the current ratio and quick ratio.Solvency Ratios: Assess the company's long-term financial stability, including the debt-to-equity ratio and interest coverage ratio.Profitability Ratios: Determine the company's profitability, including the return on assets (ROA), return on equity (ROE), and net profit margin.Efficiency Ratios: Analyze the company's operational efficiency, including the inventory turnover ratio, accounts receivable turnover ratio, and days sales of inventory (DSI).4. Key FindingsThis section will summarize the key findings from the analysis of the financial statements and ratios. It will highlight the company's strengths, weaknesses, opportunities, and threats.4.1 Strengths[List of strengths, such as strong market position, high profitability, or efficient operations]4.2 Weaknesses[List of weaknesses, such as high debt levels, declining revenue, or inefficient operations]4.3 Opportunities[List of opportunities, such as new market segments, technological advancements, or strategic partnerships]4.4 Threats[List of threats, such as intense competition, regulatory changes, or economic downturns]5. RecommendationsBased on the analysis, the following recommendations are made:[List of recommendations, such as improving operational efficiency, reducing debt levels, or expanding into new markets]6. ConclusionIn conclusion, the financial analysis of [Company Name] for the fiscal year ending [Date] indicates that the company is [brief assessment of the company's overall financial health]. The company has severalstrengths and opportunities, but also faces challenges and threats. By implementing the recommended strategies, [Company Name] can improve its financial performance and position.AppendixThe appendix includes additional information and data supporting the analysis, such as detailed financial statements, ratio calculations, and industry benchmarks.---This template provides a comprehensive structure for analyzing financial reports. It can be customized to fit the specific needs and requirements of the analysis.。
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A. Measuring Business Income
a.explain why financial statements are prepared at the end of the regular accounting period.
Major Financial Statements:
The balance sheet: provides a "snapshot" of the firm's financial condition.
b.explain why the accounts must be adjusted at the end of each period. Why?
Most external transactions are recorded when they occur. The employment of an accrual system means that numerous adjustments are necessary before financial statements are prepared because certain accounts are not accurately stated.
The statement of stockholder's equity: reports the amounts and sources of changes in equity from transactions with owners.
The footnotes of the financial statements: allow uses to improve assessment of the amount, timing and uncertainty of the estimates nts.
In practice, financial reporting is done at the end of the accounting period. Accounting periods can be any length in time. Firms typically use the year as the primary accounting period. The 12-month accounting period is referred to as the fiscal year. Firms also report for periods less than a year (e.g. quarterly) on an interim basis.
Adjustme nt princip les
•The reve nue recog niti on principle
•The match ing principle
What to adjust?
Each adjusting entry affects both a real account (assets,liability, or owner's equity) and a nominal or in come stateme nt acco unt (reve nue or expen se). The four basic types of adjust ing en tries are:
A necessarystep in the accounting process, then, is the adjustment of all accounts to an accrual basis andtheir subseque nt p osti ng to the gen eral ledger. Adjusti ng en tries are therefore n ecessaryto achieve a proper match ing of reve nues and expen sesi n the determ in ati on of net in come for the curre nt p eriod and to achieve an accurate stateme nt of the assets and equities existi ng at the end of the p eriod.
deferred expen sesthat ben efits more tha n one p eriod: for exa mp le, prep aid expen ses(e.g. prep aid in sura nee, rent) are expen ses p aid in adva nee and recorded as assets before they are used or con sumed. Whe n these assets are con sumed, ex pen ses should be recog ni zed: a debit to an expense acco unt and a credit to an asset acco unt. Ano ther exa mple is dep reciati on. The cost of a Iong-term asset is allocated as an expense over its useful life. At the end of each period dep reciatio n expen seis recorded through an adjust ing en try: a debit to a dep reciati on expense acco unt and a credit to an accumulated dep reciati on acco unt (a contra acco unt used to total the p ast dep reciati on expen ses on sp ecific Ion g-term assets).
The income statement: reports on the "performance" of the firm.
The statement of cash flows: reports the cash receipts and cash outflows classified according to operating, investment and financing activities.
The most accurate way to measure the results of enterprise activity would be to measure them at the time of the enterprise's eventual liquidation. Business, government, investors, and various other user groups, however, cannot wait indefinitely for such information. If accountants did not provide financial information periodically, someone else would.
The information must be reliable and relevant. This requires that information must be consistent and comparable over time and also be provided on a timely basis. The shorter the time period, the more difficult it becomes to determine the proper net income for the period. A month's results are usually less reliable than a quarter's results, and a quarter's results are likely to be less reliable than a year's results. Investors desire and demand that information be quickly processed and disseminated; yet the quicker the information is released, the more it is subject to error. This phenomenon provides an interesting example of the trade-off between relevance and reliability in preparing financial data.
Accounting period must be of equal length. Financial statements are prepared at the end of the regular accounting period to allow comparison across time.
Some economic activities do not occur as the result of external transactions. Examples include depreciation and the expiration of prepaid expenses.