Analysis of Financial Statements Ratios
Analysis_and_interpretation_of_financial_statements_I
Analysis and Interpretation of Financial Statements –Part I BEA3005 Lecture 7Dr Chen LimSource: Black, G. (2009) Introduction to Accounting and Finance, 2nded. Harlow: Pearson Education LtdConsolidated Income Statement 2010 2009 For the year ended 31 December2010 2009 $m $m £m £m 33,269 32,804 Turnover 28,392 28,368 (7,592)(7,380)20,800 20,988 (13,053)(9,592)AstraZeneca GSK Consolidated Statement of Financial Position 2010 2009 As at 31 December 2010 2009 $m $m Non-current assets£m £m 6,957 7,307 Property, plant and equipment 9,045 9,374 3,606 3,361 8,532 8,183 97 68 AstraZenecaGSKROCE vs. ROEROCE: Capital employed includes all capital contributions; hence use the all-inclusive profit measure (i.e. PBIT).Profit Measures (IS )RecipientsCapital Employed (SFP )Ratio Profit before interest and taxAll the following:ROCEAdd: Interest income Less: Interest expenses Debt holdersInterest-bearing debts Less: Preference dividends *Preference shareholdersPreference share capitalProfit before tax Less: Taxation Profit after taxLess: Preference dividends *Preference shareholders Preference share capital Less: Non-controlling interests **Minority shareholders *Total equity less NCI *Profit attributable to owners of the parentOrdinary shareholders Total equity (parent only)ROE* Preference dividends will appear as finance cost (if the preference share capital takes on the nature of a liability).** Only applies when group accounts are prepared and subsidiaries are not 100%-owned by the parent company.%4181008,8871,634.=×)=++118091429174528,392.,,)60.8%10014,809291=×+$48.59 £11.68 £12.26 CalculationConsolidated Statement of Cash Flows2010 2009 For the year ended 31 December2010 2009 $m $m £m £m Cash flow from operating activities8,631 9,545(775)(780)(1,834)(1,704) AstraZeneca GSK210 269 Proceeds from sale of intangible assets 126 356 (34)(31)Purchase of equity investments (279)(154)5 3 Proceeds from sale of equity investments 27 59(11)Payments made by subsidiaries to NCI– –(1,868)(4,013)62 43%520110011,49413,854.=×%912710014,759.=×66016,78711,068.=5609,918.=。
财务报表分析中英文对照外文翻译文献
中英文对照外文翻译文献(文档含英文原文和中文翻译)原文：ANALYSIS OF FINANCIAL STATEMENTSWe need to use financial ratios in analyzing financial statements.—— The analysis of comparative financial statements cannot be made really effective unless it takes the form of a study of relationships between items in the statements. It is of little value, for example, to know that, on a given date, the Smith Company has a cash balance of $1oooo. But suppose we know that this balance is only -IV per cent of all current liabilities whereas a year ago cash was 25 per cent of all current liabilities. Since the bankers for the company usually require a cash balance against bank lines, used or unused, of 20 per cent, we can see at once that the firm's cash condition is exhibiting a questionable tendency.We may make comparisons between items in the comparative financial statements as follows:1. Between items in the comparative balance sheeta) Between items in the balance sheet for one date, e.g., cash may be compared with current liabilitiesb) Between an item in the balance sheet for one date and the same item in the balance sheet for another date, e.g., cash today may be compared with cash a year agoc) Of ratios, or mathematical proportions, between two items in the balance sheet for one date and a like ratio in the balance sheet for another date, e.g., the ratio of cash to current liabilities today may be compared with a like ratio a year ago and the trend of cash condition noted2. Between items in the comparative statement of income and expensea) Between items in the statement for a given periodb) Between one item in this period's statement and the same item in last period's statementc) Of ratios between items in this period's statement and similar ratios in last period's statement3. Between items in the comparative balance sheet and items in the comparative statement of income and expensea) Between items in these statements for a given period, e.g., net profit for this year may be calculated as a percentage of net worth for this yearb) Of ratios between items in the two statements for a period of years, e.g., the ratio of net profit to net worth this year may-be compared with like ratios for last year, and for the years preceding thatOur comparative analysis will gain in significance if we take the foregoing comparisons or ratios and; in turn, compare them with:I. Such data as are absent from the comparative statements but are of importance in judging a concern's financial history and condition, for example, the stage of the business cycle2. Similar ratios derived from analysis of the comparative statements of competing concerns or of concerns in similar lines of business What financialratios are used in analyzing financial statements.- Comparative analysis of comparative financial statements may be expressed by mathematical ratios between the items compared, for example, a concern's cash position may be tested by dividing the item of cash by the total of current liability items and using the quotient to express the result of the test. Each ratio may be expressed in two ways, for example, the ratio of sales to fixed assets may be expressed as the ratio of fixed assets to sales. We shall express each ratio in such a way that increases from period to period will be favorable and decreases unfavorable to financial condition.We shall use the following financial ratios in analyzing comparative financial statements:I. Working-capital ratios1. The ratio of current assets to current liabilities2. The ratio of cash to total current liabilities3. The ratio of cash, salable securities, notes and accounts receivable to total current liabilities4. The ratio of sales to receivables, i.e., the turnover of receivables5. The ratio of cost of goods sold to merchandise inventory, i.e., the turnover of inventory6. The ratio of accounts receivable to notes receivable7. The ratio of receivables to inventory8. The ratio of net working capital to inventory9. The ratio of notes payable to accounts payableIO. The ratio of inventory to accounts payableII. Fixed and intangible capital ratios1. The ratio of sales to fixed assets, i.e., the turnover of fixed capital2. The ratio of sales to intangible assets, i.e., the turnover of intangibles3. The ratio of annual depreciation and obsolescence charges to the assetsagainst which depreciation is written off4. The ratio of net worth to fixed assetsIII. Capitalization ratios1. The ratio of net worth to debt.2. The ratio of capital stock to total capitalization .3. The ratio of fixed assets to funded debtIV. Income and expense ratios1. The ratio of net operating profit to sales2. The ratio of net operating profit to total capital3. The ratio of sales to operating costs and expenses4. The ratio of net profit to sales5. The ratio of net profit to net worth6. The ratio of sales to financial expenses7. The ratio of borrowed capital to capital costs8. The ratio of income on investments to investments9. The ratio of non-operating income to net operating profit10. The ratio of net operating profit to non-operating expense11. The ratio of net profit to capital stock12. The ratio of net profit reinvested to total net profit available for dividends on common stock13. The ratio of profit available for interest to interest expensesThis classification of financial ratios is permanent not exhaustive. -Other ratios may be used for purposes later indicated. Furthermore, some of the ratios reflect the efficiency with which a business has used its capital while others reflect efficiency in financing capital needs. The ratios of sales to receivables, inventory, fixed and intangible capital; the ratios of net operating profit to total capital and to sales; and the ratios of sales to operating costs and expenses reflect efficiency in the use of capital.' Most of the other ratios reflect financial efficiency.B. Technique of Financial Statement AnalysisAre the statements adequate in general?-Before attempting comparative analysis of given financial statements we wish to be sure that the statements are reasonably adequate for the purpose. They should, of course, be as complete as possible. They should also be of recent date. If not, their use must be limited to the period which they cover. Conclusions concerning 1923 conditions cannot safely be based upon 1921 statements.Does the comparative balance sheet reflect a seasonable situation? If so, it is important to know financial conditions at both the high and low points of the season. We must avoid unduly favorable judgment of the business at the low point when assets are very liquid and debt is low, and unduly unfavorable judgment at the high point when assets are less liquid and debt likely to be relatively high.Does the balance sheet for any date reflect the estimated financial condition after the sale of a proposed new issue of securities? If so, in order to ascertain the actual financial condition at that date it is necessary to subtract the amount of the security issue from net worth, if the. issue is of stock, or from liabilities, if bonds are to be sold. A like amount must also be subtracted from assets or liabilities depending upon how the estimated proceeds of the issue are reflected in the statement.Are the statements audited or unaudited? It is often said that audited statements, that is, complete audits rather than statements "rubber stamped" by certified public accountants, are desirable when they can be obtained. This is true, but the statement analyst should be certain that the given auditing film's reputation is beyond reproach.Is working-capital situation favorable ?-If the comparative statements to be analyzed are reasonably adequate for the purpose, the next step is to analyze the concern's working-capital trend and position. We may begin by ascertaining the ratio of current assets to current liabilities. This ratioaffords-a test of the concern's probable ability to pay current obligations without impairing its net working capital. It is, in part, a measure of ability to borrow additional working capital or to renew short-term loans without difficulty. The larger the excess of current assets over current liabilities the smaller the risk of loss to short-term creditors and the better the credit of the business, other things being equal. A ratio of two dollars of current assets to one dollar of current liabilities is the "rule-of-thumb" ratio generally considered satisfactory, assuming all current assets are conservatively valued and all current liabilities revealed.The rule-of-thumb current ratio is not a satisfactory test ofworking-capital position and trend. A current ratio of less than two dollars for one dollar may be adequate, or a current ratio of more than two dollars for one dollar may be inadequate. It depends, for one thing, upon the liquidity of the current assets.The liquidity of current assets varies with cash position.-The larger the proportion of current assets in the form of cash the more liquid are the current assets as a whole. Generally speaking, cash should equal at least 20 per cent of total current liabilities (divide cash by total current liabilities). Bankers typically require a concern to maintain bank balances equal to 20 per cent of credit lines whether used or unused. Open-credit lines are not shown on the balance sheet, hence the total of current liabilities (instead of notes payable to banks) is used in testing cash position. Like the two-for-one current ratio, the 20 per cent cash ratio is more or less a rule-of-thumb standard.The cash balance that will be satisfactory depends upon terms of sale, terms of purchase, and upon inventory turnover. A firm selling goods for cash will find cash inflow more nearly meeting cash outflow than will a firm selling goods on credit. A business which pays cash for all purchases will need more ready money than one which buys on long terms of credit. The more rapidly the inventory is sold the more nearly will cash inflow equal cash outflow, other things equal.Needs for cash balances will be affected by the stage of the business cycle. Heavy cash balances help to sustain bank credit and pay expenses when a period of liquidation and depression depletes working capital and brings a slump in sales. The greater the effects of changes in the cycle upon a given concern the more thought the financial executive will need to give to the size of his cash balances.Differences in financial policies between different concerns will affect the size of cash balances carried. One concern may deem it good policy to carry as many open-bank lines as it can get, while another may carry only enough lines to meet reasonably certain needs for loans. The cash balance of the first firm is likely to be much larger than that of the second firm.The liquidity of current assets varies with ability to meet "acid test."- Liquidity of current assets varies with the ratio of cash, salable securities, notes and accounts receivable (less adequate reserves for bad debts), to total current liabilities (divide the total of the first four items by total current liabilities). This is the so-called "acid test" of the liquidity of current condition. A ratio of I: I is considered satisfactory since current liabilities can readily be paid and creditors risk nothing on the uncertain values of merchandise inventory. A less than 1:1 ratio may be adequate if receivables are quickly collected and if inventory is readily and quickly sold, that is, if its turnover is rapid andif the risks of changes in price are small.The liquidity of current assets varies with liquidity of receivables. This may be ascertained by dividing annual sales by average receivables or by receivables at the close of the year unless at that date receivables do not represent the normal amount of credit extended to customers. Terms of sale must be considered in judging the turnover of receivables. For example, if sales for the year are $1,200,000 and average receivables amount to $100,000, the turnover of receivables is $1,200,000/$100,000=12. Now, if credit terms to customers are net in thirty days we can see that receivables are paid promptly.Consideration should also be given market conditions and the stage of the business cycle. Terms of credit are usually longer in farming sections than in industrial centers. Collections are good in prosperous times but slow in periods of crisis and liquidation.Trends in the liquidity of receivables will also be reflected in the ratio of accounts receivable to notes receivable, in cases where goods are typically sold on open account. A decline in this ratio may indicate a lowering of credit standards since notes receivable are usually given to close overdue open accounts. If possible, a schedule of receivables should be obtained showing those not due, due, and past due thirty, sixty, and ninety days. Such a, schedule is of value in showing the efficiency of credits and collections and in explaining the trend in turnover of receivables. The more rapid the turnover of receivables the smaller the risk of loss from bad debts; the greater the savings of interest on the capital invested in receivables, and the higher the profit on total capital, other things being equal.Author(s): C. O. Hardy and S. P. Meech译文：财务报表分析A.财务比率我们需要使用财务比率来分析财务报表，比较财务报表的分析方法不能真正有效的得出想要的结果，除非采取的是研究在报表中项目与项目之间关系的形式。
金融英财务报表相关英语词汇大全
金融英财务报表相关英语词汇大全
财务报表相关英语词汇大全：
财务报表分析 Analysis of financial statements
比较财务报表 parative financial statements
趋势百分比 Trend percentage
比率 Ratios
普通股每股收益 Earnings per share of mon stock
股利收益率 Dividend yield ratio
价益比 Price-earnings ratio
普通股每股帐面价值 Book value per share of mon stock 资本报酬率 Return on investment
总资产报酬率 Return on total asset
债券收益率 Yield rate on bonds
已获利息倍数 Number of times interest earned
债券比率 Debt ratio
优先股收益率 Yield rate on preferred stock
营运资本 Working Capital
周转 Turnover
存货周转率 Inventory turnover
应收帐款周转率 Accounts receivable turnover
流动比率 Current ratio
速动比率 Quick ratio
酸性试验比率 Acid test ratio
以上就是wtt为大家带来的金融英语财务报表相关英语词汇大全，希望对大家的学习有所帮助!。
chapter04analysis of financial statements(国际投资,英文版
19
Analysis of Sales and Competition
Company strengths
– Multinational diversification – Differentiated product line
Executives forecast a continuation of past
• Fanta
•Mr. PiBB
•Lift
• TAB
•Fresca
•Barq’s
• Nestea
•Pinks
Francis & Ibbotson
Chapter 4: Analysis of Financial Statements
16
Analysis of Sales and Competition
8
KO’s Statement of Cash Flows
Francis & Ibbotson
Chapter 4: Analysis of Financial Statements
9
KO’s Statement of Cash Flows
Francis & Ibbotson
Chapter 4: Analysis of Financial Statements
KO sells its products in 200 countries
Only 21% are made in the U.S. where
KO is headquartered.
Francis & Ibbotson
Chapter 4: Analysis of Financial Statements
KO generates
ratio2
Copyright
1994, HarperCollins Publishers
10
Analyzing Activity
is a more sophisticated analysis of a firm's liquidity, evaluating the speed with which certain accounts are converted into sales or cash; also measures a firm's efficiency
16
Seven Basic Profitability Measures
GPM= OPM = NPM= ROA= ROE= Gross Profits Sales Operating Profits (EBIT) Sales Net Profit After Taxes Sales Net Profit After Taxes Total Assets Net Profit After Taxes Stockholders’ Equity Earnings Available for Common Stockholder’s Number of Shares of Common Stock Outstanding Market Price Per Share of Common Stock Earnings Per Share
Copyright 1994, HarperCollins Publishers
Three Important Liquidity Measures
9
Net Working Capital (NWC) NWC = Current Assets - Current Liabilities Current Ratio (CR) Current Assets CR = Current Liabilities Quick (Acid-Test) Ratio (QR) Current Assets - Inventory QR = Current Liabilities
公司理财罗斯专业词汇整理
Maturity premium: 期限溢价Risk premium: 风险溢价market portfolio: 市场组合Variance: 方差Standard deviation: 标准差Average return: 平均收益率Diversification: 分散投资Portfolio: 投资组合Unique risk or diversifiable risk: 特有风险或可分散风险Market risk or systematic risk: 市场风险或系统风险True value: 真实价值Efficient capital market: 有效资本市场Commercial paper: 短期融资券、商业票据Treasury stock: 库藏股Issued shares: 已发行股票Outstanding shares: 流通在外股票Authorized share capital: 法定股本Par value: 面值Additional paid-in capital or capital surplus: 附加实缴资本或资本公积Retained earnings: 留存收益Outside directors: 外部董事Majority voting: 多数表决投票制度Cumulative voting: 累积投票权Proxy contest: 代理权争夺Preferred stock: 优先股Net worth: 净值、资本净值Floating-rate preferred: 浮动利率优先股Counterbalance:使平衡,抵销Floating interest rate: 浮动利率Prime rate: 最优惠利率London interbank offered rate (LIBOR): 伦敦银行同业拆借利率Funded debt: 长期债务Sinking fund: 偿债基金Callable bond: 可赎回债券Subordinated debt: 次级债券或后偿债务Secured debt: 有抵押债务或有担保债务Default risk: 违约风险Eurodollars: 欧洲美元Warrant: 认股权证Convertible bond: 可转换债券Convertible preferred stock: 可转换优先股Financial deficit: 财务赤字Income statement: 利润表Common-size income statement: 共同尺度利润表、百分率利润表Balance sheet: 资产负债表Common-size balance sheet: 共同尺度资产负债表Leverage ratios: 负债比率、杠杆比率Financial leverage: 财务杠杆Long-term debt ratio: 长期负债比率Long-term debt-equity ratio: 长期债务权益比Total debt ratio: 资产负债率Times interest earned ratio: 已获利息倍数Cash coverage ratio: 现金流偿债能力比率Liquidity ratio: 变现能力比率Net working capital to total assets ratio: 净营运资本占总资产比Current ratio: 流动比率Quick (or acid-test) ratio: 速动比率或酸性测试比率Cash ratio: 现金比率Marketable securities: 有价证券Asset turnover ratio: 资产周转率Average collection period: 平均收账期Inventory turnover ratio: 存货周转率Profitability ratios: 盈利能力比率Profit margin: 销售净利率、利润边际Operating profit margin: 营业利润率Return on assets (ROA): 总资产收益率Return on equity (ROE): 净资产收益率Payout ratio: 股利支付率Plowback ratio: 留存收益率Long-term debt ratio: 长期负债比率Long-term debt-equity ratio: 长期债务权益比Total debt ratio: 资产负债率Times interest earned ratio: 已获利息倍数Interest cover ration:利息保障倍数Cash coverage ratio: 现金流偿债能力比率Du Pont system: 杜邦财务分析体系ROA: 总资产收益率ROE: 净资产收益率Creditor 债权人Deflation 通货紧缩Expenses 费用Financial statement 财务报表Financial activities 筹资活动Liabilities 负债Negative cash flow 负现金流量Operating activities 经营活动Owners equity 所有者权益Partnership 合伙企业Positive cash flow 正现金流量Retained earning 留存利润Revenue 收入Sole proprietorship 独资企业Solvency 清偿能力财会名词汉英对照表〔1〕会计与会计理论会计accounting决策人Decision Maker投资人Investor股东Shareholder债权人Creditor流动资产Current assets流动负债Current Liabilities长期负债Long-term Liabilities投入资本Contributed Capital留存收益Retained Earning－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－应收帐款Account receivable应收票据Note receivable起运点交货价F.O.B shipping point目的地交货价F.O.B destination point商业折扣Trade discount现金折扣Cash discount销售退回及折让Sales return and allowance坏帐费用Bad debt expense备抵法Allowance method备抵坏帐Bad debt allowance出票人Maker受款人Payee本金Principal利息率Interest rate到期日Maturity date本票Promissory note贴现Discount拒付费Protest fee－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－〔4〕存货存货Inventory商品存货Merchandise inventory产成品存货Finished goods inventory在产品存货Work in process inventory原材料存货Raw materials inventory市价Market value重置本钱Replacement cost可变现净值Net realizable value上限Upper limit下限Lower limit毛利法Gross margin method零售价格法Retail method本钱率Cost ratio－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－〔5〕长期投资长期投资Long-term investment长期股票投资Investment on stocks长期债券投资Investment on bonds本钱法Cost method权益法Equity method合并法Consolidation method股利宣布日Declaration date股权登记日Date of record除息日Ex-dividend date付息日Payment date债券面值Face value, Par value债券折价Discount on bonds债券溢价Premium on bonds票面利率Contract interest rate, stated rate市场利率Market interest ratio, Effective rate普通股Common Stock优先股Preferred Stock现金股利Cash dividends股票股利Stock dividends清算股利Liquidating dividends到期日Maturity date到期值Maturity value－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-〔6〕固定资产固定资产Plant assets or Fixed assets原值Original value预计使用年限Expected useful life预计残?nbsp;Estimated residual value折旧费用Depreciation expense累计折旧Accumulated depreciation帐面价值Carrying value应提折旧本钱Depreciation cost净值Net value在建工程Construction-in-process磨损Wear and tear过时Obsolescence直线法Straight-line method 〔SL〕工作量法Units-of-production method 〔UOP〕加速折旧法Accelerated depreciation method双倍余额递减法Double-declining balance method 〔DDB〕年数总和法Sum-of-the-years-digits method 〔SYD〕以旧换新Trade in经营租赁Operating lease融资租赁Capital lease廉价购置权Bargain purchase option 〔BPO〕资产负债表外筹资Off-balance-sheet financing最低租赁付款额Minimum lease payments－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－〔7〕无形资产无形资产Intangible assets专利权Patents商标权Trademarks, Trade names著作权Copyrights特许权或专营权Franchises商誉Goodwill开办费Organization cost租赁权Leasehold摊销Amortization－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－〔8〕流动负债负债Liability流动负债Current liability应付帐款Account payable应付票据Notes payable贴现票据Discount notes长期负债一年内到期局部Current maturities of long-term liabilities应付股利Dividends payable预收收益Prepayments by customers存入保证金Refundable deposits应付费用Accrual expense增值税value added tax营业税Business tax应付所得税Income tax payable应付奖金Bonuses payable产品质量担保负债Estimated liabilities under product warranties赠品和兑换券Premiums, coupons and trading stamps或有事项Contingency或有负债Contingent或有损失Loss contingencies或有利得Gain contingencies永久性差异Permanent difference时间性差异Timing difference应付税款法Taxes payable method－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－〔9〕长期负债长期负债Long-term Liabilities应付公司债券Bonds payable有担保品的公司债券Secured Bonds抵押公司债券Mortgage Bonds保证公司债券Guaranteed Bonds信用公司债券Debenture Bonds一次还本公司债券Term Bonds分期还本公司债券Serial Bonds可转换公司债券Convertible Bonds可赎回公司债券Callable Bonds可要求公司债券Redeemable Bonds记名公司债券Registered Bonds无记名公司债券Coupon Bonds普通公司债券Ordinary Bonds收益公司债券Income Bonds名义利率，票面利率Nominal rate实际利率Actual rate有效利率Effective rate溢价Premium折价Discount面值Par value直线法Straight-line method实际利率法Effective interest method到期直接偿付Repayment at maturity提前偿付Repayment at advance偿债基金Sinking fund长期应付票据Long-term notes payable抵押借款Mortgage loan－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－〔10〕业主权益权益Equity业主权益Owners equity股东权益Stockholders equity投入资本Contributed capital缴入资本Paid-in capital股本Capital stock资本公积Capital surplus留存收益Retained earnings核定股本Authorized capital stock实收资本Issued capital stock发行在外股本Outstanding capital stock库藏股Treasury stock普通股Common stock优先股Preferred stock累积优先股Cumulative preferred stock非累积优先股Noncumulative preferred stock完全参加优先股Fully participating preferred stock局部参加优先股Partially participating preferred stock非局部参加优先股Nonpartially participating preferred stock现金发行Issuance for cash非现金发行Issuance for noncash consideration股票的合并发行Lump-sum sales of stock发行本钱Issuance cost本钱法Cost method面值法Par value method捐赠资本Donated capital盈余分配Distribution of earnings股利Dividend股利政策Dividend policy宣布日Date of declaration股权登记日Date of record除息日Ex-dividend date股利支付日Date of payment现金股利Cash dividend股票股利Stock dividend拨款appropriation－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-〔12〕财务状况变动表财务状况变动表中的现金根底SCFP.Cash Basis〔现金流量表〕财务状况变动表中的营运资金根底SCFP.Working Capital Basis〔资金来源与运用表〕营运资金Working Capital全部资源概念All-resources concept直接:)业务Direct exchanges正常营业活动Normal operating activities财务活动Financing activities投资活动Investing activities－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－－-〔13〕财务报表分析财务报表分析Analysis of financial statements比较财务报表Comparative financial statements趋势百分比Trend percentage比率Ratios普通股每股收益Earnings per share of common stock股利收益率Dividend yield ratio价益比Price-earnings ratio普通股每股帐面价值Book value per share of common stock资本报酬率Return on investment总资产报酬率Return on total asset债券收益率Yield rate on bonds已获利息倍数Number of times interest earned债券比率Debt ratio优先股收益率Yield rate on preferred stock营运资本Working Capital周转Turnover存货周转率Inventory turnover应收帐款周转率Accounts receivable turnover流动比率Current ratio速动比率Quick ratio酸性试验比率Acid test ratio〔14〕合并财务报表合并财务报表Consolidated financial statements吸收合并Merger创立合并Consolidation控股公司Parent company附属公司Subsidiary company少数股权Minority interest权益联营合并Pooling of interest 购置合并Combination by purchase 权益法Equity method本钱法Cost method。
信贷基本词汇英汉对照(1)-译国译民
信贷基本词汇英汉对照(1)-译国译民翻译公司2M method 2M法3M method 3M法A scores A值Accounting convention 会计惯例Accounting for acquisitions 购并的会计处理Accounting for debtors 应收账款核算Accounting for depreciation 折旧核算Accounting for foreign currencies 外汇核算Accounting for goodwill 商誉核算Accounting for stocks 存货核算Accounting policies 会计政策Accounting standards 会计准则Accruals concept 权责发生原则Achieving credit control 实现信用控制Acid test ratio 酸性测试比率Actual cash flow 实际现金流量Adjusting company profits 企业利润调整Advance payment guarantee 提前偿还保金Adverse trading 不利交易Advertising budget 广告预算Advising bank 通告银行Age analysis 账龄分析Aged debtors analysis 逾期账款分析Aged debtors’ exception report 逾期应收款的特殊报告Aged debtors’ exception report 逾期账款特别报告Aged debtors’ report逾期应收款报告Aged debtors’ report逾期账款报告All—monies clause 全额支付条款Amortization 摊销Analytical questionnaire 调查表分析Analytical skills 分析技巧Analyzing financial risk 财务风险分析Analyzing financial statements 财务报表分析Analyzing liquidity 流动性分析Analyzing profitability 盈利能力分析Analyzing working capital 营运资本分析Annual expenditure 年度支出Anticipating future income 预估未来收入Areas of financial ratios 财务比率分析的对象Articles of incorporation 合并条款Asian crisis 亚洲(金融)危机Assessing companies 企业评估Assessing country risk 国家风险评估Assessing credit risks 信用风险评估Assessing strategic power 战略地位评估Assessment of banks 银行的评估Asset conversion lending 资产转换贷款Asset protection lending 资产担保贷款Asset sale 资产出售Asset turnover 资产周转率Assets 资产Association of British Factors and Discounters 英国代理人与贴现商协会Auditor's report 审计报告Aval 物权担保Bad debt 坏账Bad debt level 坏账等级Bad debt risk 坏账风险Bad debts performance 坏账发生情况Bad loans 坏账Balance sheet 资产负债表Balance sheet structure 资产负债表结构Bank credit 银行信贷Bank failures 银行破产Bank loans．availability 银行贷款的可获得性Bank status reports 银行状况报告Bankruptcy 破产Bankruptcy code 破产法Bankruptcy petition 破产申请书Basle agreement 塞尔协议Basle Agreement 《巴塞尔协议》Behavioral scoring 行为评分Bill of exchange 汇票Bill of lading 提单BIS 国际清算银行BIS agreement 国际清算银行协定Blue chip 蓝筹股Bonds 债券Book receivables 账面应收账款Borrowing money 借人资金Borrowing proposition 借款申请Breakthrough products 创新产品Budgets 预算Building company profiles 勾画企业轮廓Bureaux (信用咨询)公司Business development loan 商业开发贷款Business failure 破产Business plan 经营计划Business risk 经营风险Buyer credits 买方信贷Buyer power 购买方力量Buyer risks 买方风险CAMPARI 优质贷款原则Canons of lending 贷款原则Capex 资本支出Capital adequacy 资本充足性Capital adequacy rules 资本充足性原则Capital commitments 资本承付款项Capital expenditure 资本支出Capital funding 资本融资Capital investment 资本投资Capital strength 资本实力Capital structure 资本结构Capitalization of interest 利息资本化Capitalizing development costs 研发费用资本化Capitalizing development expenditures 研发费用资本化Capitalizing interest costs 利息成本资本化Cascade effect 瀑布效应Cash assets 现金资产Cash collection targets 现金托收目标Cash cycle 现金循环周期Cash cycle ratios 现金循环周期比率Cash cycle times 现金循环周期时间Cash deposit 现金储蓄Cash flow adjustments 现金流调整Cash flow analysis 现金流量分析Cash flow crisis 现金流危机Cash flow cycle 现金流量周期Cash flow forecasts 现金流量预测Cash flow lending 现金流贷出Cash flow profile 现金流概况Cash flow projections 现金流预测Cash flow statements 现金流量表Cash flows 现金流量Cash position 现金头寸Cash positive JE现金流量Cash rich companies 现金充足的企业Cash surplus 现金盈余Cash tank 现金水槽Cash-in-advance 预付现金Categorized cash flow 现金流量分类CE 优质贷款原则CEO 首席执行官Chairman 董事长，总裁Chapter 11 rules 第十一章条款Charge 抵押Charged assets 抵押资产Chief executive officer 首席执行官Collateral security 抵押证券Collecting payments 收取付款Collection activity收款活动Collection cycle 收款环节Collection procedures 收款程序Collective credit risks 集合信用风险Comfortable liquidity positi9n 适当的流动性水平Commercial mortgage 商业抵押Commercial paper 商业票据Commission 佣金Commitment fees 承诺费Common stock 普通股Common stockholders 普通股股东Company and its industry 企业与所处行业Company assets 企业资产Company liabilities 企业负债Company loans 企业借款Competitive advantage 竞争优势Competitive forces 竞争力Competitive products 竞争产品Complaint procedures 申诉程序Computerized credit information 计算机化信用信息Computerized diaries 计算机化日志Confirmed letter of credit 承兑信用证Confirmed letters of credit 保兑信用证Confirming bank 确认银行Conservatism concept 谨慎原则Consistency concept 一贯性原则Consolidated accounts 合并报表Consolidated balance sheets 合并资产负债表Contingent liabilities 或有负债Continuing security clause 连续抵押条款Contractual payments 合同规定支出Control limits 控制限度Control of credit activities 信用活动控制Controlling credit 控制信贷Controlling credit risk 控制信用风险Corporate credit analysis 企业信用分析Corporate credit controller 企业信用控制人员Corporate credit risk analysis 企业信用风险分析Corporate customer 企业客户Corporate failure prediction models 企业破产预测模型Corporate lending 企业贷款Cost leadership 成本领先型Cost of sales 销售成本Costs 成本Country limit 国家限额Country risk 国家风险Court judgments 法院判决Covenant 贷款保证契约Covenants 保证契约Creative accounting 寻机性会计Credit analysis 信用分析Credit analysis of customers 客户信用分析Credit analysis of suppliers 供应商的信用分析Credit analysis on banks 银行信用分析Credit analysts 信用分析Credit assessment 信用评估Credit bureau reports 信用咨询公司报告Credit bureaux 信用机构Credit control 信贷控制Credit control activities 信贷控制活动Credit control performance reports 信贷控制绩效报告Credit controllers 信贷控制人员Credit cycle 信用循环Credit decisions 信贷决策Credit deterioration 信用恶化Credit exposure 信用敞口Credit granting process 授信程序Credit information 信用信息Credit information agency 信用信息机构Credit insurance 信贷保险Credit insurance advantages 信贷保险的优势Credit insurance brokers 信贷保险经纪人Credit insurance limitations 信贷保险的局限Credit limits 信贷限额Credit limits for currency blocs 货币集团国家信贷限额Credit limits for individual countries 国家信贷限额Credit management 信贷管理Credit managers 信贷经理Credit monitoring 信贷监控Credit notes 欠款单据Credit period 信用期Credit planning 信用计划Credit policy 信用政策Credit policy issues 信用政策发布Credit proposals 信用申请Credit protection 信贷保护Credit quality 信贷质量Credit rating 信用评级Credit rating agencies 信用评级机构Credit rating process 信用评级程序Credit rating system 信用评级系统Credit reference 信用咨询Credit reference agencies 信用评级机构Credit risk 信用风险Credit risk assessment 信用风险评估Credit risk exposure 信用风险敞口Credit risk insurance 信用风险保险Credit risk．individual customers 个体信用风险Credit risk：bank credit 信用风险：银行信用Credit risk：trade credit 信用风险：商业信用Credit scoring 信用风险评分Credit scoring model 信用评分模型Credit scoring system 信用评分系统Credit squeeze 信贷压缩Credit taken ratio 受信比率Credit terms 信贷条款Credit utilization reports 信贷利用报告Credit vetting 信用审查Credit watch 信用观察Credit worthiness 信誉Creditor days 应付账款天数Cross-default clause 交叉违约条款Currency risk 货币风险Current assets 流动资产Current debts 流动负债Current ratio requirement 流动比率要求Current ratios 流动比率Customer care 客户关注Customer credit ratings 客户信用评级Customer liaison 客户联络Customer risks 客户风险Cut-off scores 及格线Cycle of credit monitoring 信用监督循环Cyclical business 周期性行业Daily operating expenses 经营费用Day’s sales outstanding 收回应收账款的平均天数Debentures 债券Debt capital 债务资本Debt collection agency 债务托收机构Debt issuer 债券发行人Debt protection levels 债券保护级别Debt ratio 负债比率Debt securities 债券Debt service ratio 还债率Debtor days 应收账款天数Debtor's assets 债权人的资产Default 违约Deferred payments 延期付款Definition of leverage 财务杠杆率定义Deposit limits 储蓄限额Depositing money 储蓄资金Depreciation 折旧Depreciation policies 折旧政策Development budget 研发预算Differentiation 差别化Direct loss 直接损失Directors salaries 董事薪酬Discretionary cash flows 自决性现金流量Discretionary outflows 自决性现金流出Distribution costs 分销成本Dividend cover 股息保障倍数Dividend payout ratio 股息支付率Dividends 股利Documentary credit 跟单信用证DSO 应收账款的平均回收期Duration of credit risk 信用风险期Eastern bloc countries 东方集团国家EBITDA 扣除利息、税收、折旧和摊销之前的收益ECGD 出口信贷担保局Economic conditions 经济环境Economic cycles 经济周期Economic depression 经济萧条Economic growth 经济增长Economic risk 经济风险Electronic data interchange(EDI) 电子数据交换Environmental factors 环境因素Equity capital 权益资本Equity finance 权益融资Equity stake 股权EU countries 欧盟国家EU directives 欧盟法规EU law 欧盟法律Eurobonds 欧洲债券European parliament 欧洲议会European Union 欧盟Evergreen loan 常年贷款Exceptional item 例外项目Excessive capital commitments 过多的资本承付款项Exchange controls 外汇管制Exchange-control regulations 外汇管制条例Exhaust method 排空法Existing competitors 现有竞争对手Existing debt 未清偿债务Export credit agencies 出口信贷代理机构Export credit insurance 出口信贷保险Export factoring 出口代理Export sales 出口额Exports Credit Guarantee Department 出口信贷担保局Extending credit 信贷展期External agency 外部机构External assessment methods 外部评估方式External assessments 外部评估External information sources 外部信息来源Extraordinary items 非经常性项目Extras 附加条件Facility account 便利账户Factoring 代理Factoring debts 代理收账Factoring discounting 代理折扣Factors Chain International 国际代理连锁Failure prediction scores 财务恶化预测分值FASB (美国)财务会计准则委员会Faulty credit analysis 破产信用分析Fees 费用Finance，new business ventures 为新兴业务融资Finance，repay existing debt 为偿还现有债务融资Finance, working capital 为营运资金融资Financial assessment 财务评估Financial cash flows 融资性现金流量Financial collapse 财务危机。
财务报表分析中英文对照外文翻译文献编辑
财务报表分析中英文对照外文翻译文献编辑Introduction:Financial statement analysis is an essential tool used by businesses and investors to evaluate the financial performance and position of a company. It involves the examination of financial statements such as the balance sheet, income statement, and cash flow statement to assess the company's profitability, liquidity, solvency, and efficiency. In this document, we will provide a detailed analysis and translation of foreign literature related to financial statement analysis.1. Importance of Financial Statement Analysis:Financial statement analysis provides valuable insights into a company's financial health and helps stakeholders make informed decisions. It enables investors to assess the profitability and growth potential of a company before making investment decisions. Additionally, it helps creditors evaluate the creditworthiness and repayment capacity of a company before extending credit. Furthermore, financial statement analysis assists management in identifying areas of improvement and making strategic decisions to enhance the company's performance.2. Key Elements of Financial Statement Analysis:a) Balance Sheet Analysis:The balance sheet provides a snapshot of a company's financial position at a specific point in time. It presents the company's assets, liabilities, and shareholders' equity. By analyzing the balance sheet, stakeholders can assess the company's liquidity, solvency, and financial stability.b) Income Statement Analysis:The income statement, also known as the profit and loss statement, presents the company's revenues, expenses, and net income over a specific period. It helps stakeholders evaluate the company's profitability, revenue growth, and cost management.c) Cash Flow Statement Analysis:The cash flow statement details the inflows and outflows of cash during a specific period. It provides insights into the company's operating, investing, and financing activities. By analyzing the cash flow statement, stakeholders can assess the company's ability to generate cash, meet its financial obligations, and fund its growth.3. Financial Ratios for Analysis:Financial ratios are essential tools used in financial statement analysis to assess a company's performance and compare it with industry benchmarks. Some commonly used financial ratios include:a) Liquidity Ratios:- Current Ratio: Measures a company's ability to meet short-term obligations.- Quick Ratio: Measures a company's ability to meet short-term obligations without relying on inventory.b) Solvency Ratios:- Debt-to-Equity Ratio: Measures the proportion of debt to equity in a company's capital structure.- Interest Coverage Ratio: Measures a company's ability to meet interest payments on its debt.c) Profitability Ratios:- Gross Profit Margin: Measures the profitability of a company's core operations.- Net Profit Margin: Measures the profitability of a company after all expenses, including taxes.d) Efficiency Ratios:- Inventory Turnover Ratio: Measures how quickly a company sells its inventory.- Accounts Receivable Turnover Ratio: Measures how quickly a company collects cash from its customers.4. Translation of Foreign Literature:In this section, we will provide a translation of key points from foreign literature related to financial statement analysis. The literature emphasizes the importance of accurate financial reporting, the use of financial ratios for analysis, and the interpretation of financial statements to make informed decisions.Conclusion:Financial statement analysis is a crucial process for evaluating a company's financial performance and position. It provides valuable insights into a company's profitability, liquidity, solvency, and efficiency. By analyzing financial statements and using financial ratios, stakeholders can make informed decisions regarding investments, credit extension, and strategic planning. Accurate translation and understanding of foreign literature related to financial statement analysis can further enhance the effectiveness of this process.。
Ratio_Analysis_Interpretation_of资料
Types of Ratios
There are generally four types of financial statement ratios. Each type of ratio is used for different purposes. (1) Activity (or efficiency ratios) (2) Solvency (or liquidity ratios) (3) Leverage (or debt ratios) (4) Profitability ratios
Week 2 – Ratio Analysis & Interpretation of Financial Statements
Chapters 27, 28
1
The Purpose of Financial Statements
• The purpose of financial statements is to provide reliable, relevant and useful information to users.
5
Activity Ratios
Activity ratios are used to evaluate how efficiently a company is converting balance sheet items into cash or sales. 1) Inventory turnover 2) Days sales outstanding 3) Accounts payable turnover 4) Total asset turnover
6
Inventory Turnover Ratio
中英文对照,专业名词,财务成本管理(完整版)
PART I Fundamentals to Financial Management第一部分财务管理导论Section I Fundamentals to Financial Management第一节财务管理概述1.profit maximization*利润最大化1-1 EPS maximization* 每股收益最大化【讲解】EPS, earnings per share 每股收益1-2 Maximization of shareholders wealth* 股东财富最大化e.g. Shareholder wealth maximization is a fundamental principle of financial management. In financial management we assume that the objective of the business is to maximize shareholder wealth. This is not necessarily the same as maximizing profit.【讲解】（1）maximization[,mæksimai'zeiʃən]n.最大化，极大化（2）minimization [,minimai'zeiʃən, -mi'z-]n.最小化（3）maximize['mæksɪmaɪz]v. 最大化，取……最大值，达到最大值（4）minimize ['mɪnɪmaɪz] v. 最小化（5）minimum n.最小值，最小量 adj.最小的，最低的（6）maximum n. 极大，最大限度，最大量 adj.最高的，最多的（7）the same as 和……一样，与……相同学习成果回顾【译】股东财富最大化是财务管理的基本原则。
在财务管理中我们假定企业的目标就是实现股东财富最大化。
负债比率相关
Ratio analysis Asset management Ratio
The Inventory Turnover Ratio
Analysis of Financial Statement
Professor: Dr. Jo-Hui Chen
• On May 19, 1999, Dell computer Corp. announced that its first quarter earnings were 42% higher than those reported one year earlier. This dramatic increase in earnings was roughly in line with Wall Street projections. Nevertheless, Dell’s stock fell nearly $4 a share immediately after the announcement.
Financial Statement
Goal of Financial Statement
Advantages of Financial Management
To maximize the stock price
To understand the accounting data do influence stock prices
• Inventories are typically the least liquid of a firm’s current assets, hence those on which looses are most likely to occur in the event of liquidation. Therefore, a measure of the firm’s ability to pay off short-term obligations without relying on the sale of inventories is important.
CFA考试财务报表分析——财务比率和每股收益投资工具
第十章财务报表的分析Chapter ⒑Analysis of Financial Statement（Investment Analysis and Portfolio Management）§⒈解释通用规模的资产负债表（Common-size balance sheet）和通用规模的损益表，并讨论使用通用规模财务报表的情形通用规模的资产负债表（Common-size balance sheet），是将所有的资产负债账目都表示为总资产（total）的百分比。
通用规模的损益表（Common-size income statement），是将所有损益表中的所有项目都表示为销售额（sales）的百分比。
通用规模财务报表的作用：①便于对规模不同的两个公司进行比较；②检验单个公司在某段时期内的趋势；③有助于分析师了解公司财务报表的结构，如流动性资产的比例、负债为短期义务的比例等。
§⒉计算、解释和讨论下列量的适用：公司的内部流动性（company's Internal liquidity）、营业业绩（operating performance）、风险组合（risk profile）和增长潜能（growth potential）财务比率的五个主要类别：①通用规模报表（Common-size statement）。
②内部流动性或清偿能力（Internal liquidity / solvency）。
③营业业绩，包括营业效率（operating efficiency）和营业获利能力（operating profitability）。
④风险分析（risk analysis），包括商业风险、筹资风险和流动性风险。
⑤增长分析（growth analysis）。
内部流动性或偿债能力（Internal liquidity / solvency）内部流动性，表明公司履行短期筹资义务的能力。
它是公司的近期筹资义务（如应付账目）与公司可得的能够用于履行义务的流动资产（或现金流量）的比。
Analysis-of-Financial-statements
Analysis-of-Financial-state mentsANALYSIS OF FINANCIAL STATEMENTSNameJiacheng CaoPast and likely future of financial performance and financial position To analyze the past, present and future of Pulsins financial performance and position we have to use their financial statements and the financial ratios. The first ratios in consideration are the profitability ratios. The company’s gross profit margin (GPM) standsat 54%, and the net profit margin NPM stands at 25% as at 2013. The GPM has been kept between the ranges of 50% to 60% of the year 2008. It is due to the high levels of cost of sales arising from the use of high and new technology which results in high-quality products and thus higher sales levels (Subramanyam et al., 2009: 34). The NPM, however, has been rising from 5% to 25% in 2008 due to the company’s ability to control its expenditure. The profitability ratios are expected to remain in the same trend because the company had a five times administration and selling expenses in 2013 as that of 2012. Expansion of business and exportation of products to Germany explains the increased costs (Robinson, 2012: 86).The accepted liquidity ratios for businesses are always 1:1 or 2:1. The following table shows the liquidity ratios of the company over the period between 2006 and 2013. DATE 2006 2007 2008 2009 2010 2011 2012 VALUE 0.70 0.60 1.78 0.95 1.25 0.95 0.92The ratios have been on the rise from 2006 to 2008. In 2009, they fell and rose again in 2010. In 2011, it fell to 2012. The forecast indicates that the organization will maintain a favorable liquidity ratio above one by ensuring that it reduces the value of its trade creditors thus raising the ability of the company to meet its short-term obligations.The current ratio of the companyThe company’s earnings per share ratios (EPS) have also been increasing from £6 in 2008 to £2500 in 2014. The trend is expected to be continuing to the next period because the value per share will be rising as the result of increased confidence in the management of the owners of the company.Working capital analysis2007 2008 2009 2010 2011 2012Trade debtors 70,945 161,719 271,539 510,306 608,588 1,035,955 Stock 50,589 64,680 101,231 168,065 326,070 633,329 Trade creditors 117,833 140,092 303,537 427,991 715,777 1,307,765 3,701 173,351 86,068 273,924 291,040 531,994 WorkingCapitalThe working capital has indicated a rise in the value of the trade creditors and debtors. The 2010 to 2012 values are indicating a strong ability of the company to retain more of their customers. The trade creditors are more than the trade debtors because of increased demand and sales for the product. The trend is forecasted to remain the same due to expansion and the company exporting its products to Germany.BenchmarksThe best benchmark for the company is Innocent Smoothies Inc. because they have a similar nature of products and history. Innocent is growing through coordination while Pulsin through direction. It has given Pulsin a chance to look ahead and learn from the mistakes and achievements of Innocent because Innocent is standing more established growth process (Wahlen et al., 2010: 56).Pulsin has done well in maintaining a better profitability than Innocent in the beginning. The NPM of Innocent ranged between negatives and zero while that of Pulsin was between 20% and 25%. It was because Innocent did not exercise control over their expenses while pulsing did. It was also because innocent’s shares were bought byCoca-Cola while Pulsin kept it shares between its three directors. After Coca-Cola took over the business in 2009, there was slow decision-making, unlike Pulsin where the directors have control of the business and make fast decisions. The gearing ratios was above 100% until when 2009 because the business had encountered problems inability to pay their debts. Pulsin experienced the same problems but used the options to re-invest rather than borrowings from banks. They also made use of crowd borrowings whose interest rates were lower than those of the bank by about 3% to 5%.Pulsin, however, has been experiencing lower performance in terms of the OCC. Innocent has a higher OCC and lower inventory days as well as debtor days. Pulsin should avoid using more cash frequently by ensuring it improves its OCC level by ensuring the debtor and inventory days are below 30 days (Kopczynski, 1996: 37).Other factors like image protection and corporate responsibility have helped Innocent gain more sales than Innocent. It is because it allocates some part of the profits to enhance the company’s reputation thus increasing the customer confidence. Pulsin should learn from innocent’s strategy of using about 10% to 20% of their profit for donations to charities and adverts thus maintaining a healthy and ethical image.Lectur er’s presentationThe sales of Pulsin Ltd have performed well. In figure 1 the sales value has been increasing over the period from 2011 to 2013. Also it is notable the effect of innovation and introduction of new products as the protein powders which were new products in 2011 their sales volume has been increasing almost to that of the size of their top selling product.Last 3 years’ sales results1.6m bars & 64,000kg of protein powder in 2013Figure1 Source: Pulsin guest lecture slide, 2014As the company is travelling towards growth through direction in the second phase of the Greiner curve it is important to consider the sales direction (Fridson et al., 2011: 28). The company should focus on developing sales in the U.K internet and wholesale customers as they account for 70% of the total sales.In figure 2, the sales of products to the internet are highest at £1.59 per unit followed by wholesalers at £0.75 per unit and finally distributors at £0.7 per unit. The company should, therefore, focus more on the customers who will give them more sales and better profit margins.Moreover, in figure 3, it shows the problem of cash flow cycle could be solved because there are usually shorter payment periods with selling goods to wholesalers and on the UK internet. Therefore, the debtor days and OCC would be correspondingly declined (Feldman et al., 2007: 79).Moreover, in figure 3, it shows the problem of cash flow cycle could be solved because there are usually shorter payment periods with selling goods to wholesalers and on the UK internet (Bernstein, et al., 2000: 56). Therefore, the debtor days and OCC would be correspondingly declined.Figure2: Source: Pulsin guest lecture slide, 2014Figure three provides a solution to the problem of cash flow cycle. The debtor days in the OCC can be reduced by increasing the sales to wholesalers and the U.K internetbecause there are shorter payment periods. Sales margin & volumeDistributors/MultiplesWholesalers/Large Direct to store Direct to Store/independents/Pulsin ’ webshopVolume Margin High Low High LowPayment Terms0-30days30-45 days 45-60+daysFigure3Source:Pulsin guest lecture slide , 2014Recommendations and conclusionsPulsin has encountered many advantages due to its involvement in Research andDevelopment (R&D). It is due to the policy of the U.K government that any investment in R&D attracts a corporation tax relief of about 225% of the R&D. The company should, therefore, have structured research methods such as using Data Monitoring system and employing research companies to control the quality of the research. It will assist because the company will have reduced taxes thus more profits.The company keeps a favorable amount of cash in their financial statements because majority of transactions are carried out through cash. The holding of more cash can lead to sustainable growth in the future. Keeping a low gearing ratio which declines every yearenables the company to expand as it increases its reduces its reliance on debts (Atrill, 2013: 30).ReferencesAtrill, P. (2013). Financial Accounting for Decision Makers.Harlow, Pearson Education.?id=459576.Bernstein, L. A., & Wild, J. J. (2000).Analysis of financial statements.New York [u.a.], McGraw-Hill.Feldman, M., & Libman, A. (2007).Crash course in accounting and financial statement analysis.Hoboken, N.J., Wiley. /marc.asp?bookid=16885. Fridson, M. S., & Alvarez, F. (2011).Financial statement analysis workbook step-by-step exercises and tests to help you master financial statement analysis.Hoboken N.J.,Wiley./marc.asp?bookid=43202.Jablonsky, S. F., & Barsky, N. P. (2001).The manager's guide to financial statement analysis.New York, Wiley.Kopczynski, F. J. (1996). Prospective financial statement analysis. New York: Wiley. Peterson Drake, P., & Fabozzi, F. J. (2012).Analysis of financial statements.Robinson, T. R. (2012). International financial statement analysis.Hoboken, N.J., John Wiley & Sons./marc.asp?bookid=46147. Subramanyam, K. R., & Wild, J. J. (2009).Financial statement analysis. Boston, McGraw-Hill Irwin.Wahlen, J. M., Bradshaw, M., Baginski, S. P., & Stickney, C. P. (2010).Financial reporting, financial statement analysis, and valuation. Mason, Ohio, South-Western.。
Topic03-Financial Analysis and Financial Planning
Financial Analysis and Financial Planning
Topic 3 Financial Analysis and Financial Planning
Reading：Chapter 2 & 3 & 26
3.1 3.2 3.3
Basic Financial Statements Financial Statements Analysis Financial Planning Model
As far as the left-hand side is concerned
1. Current assets（including cash, securities, accounts
receivable , and inventories)
2. Fixed assets（including equipment and machined,
Current Ratio
Current Assets Curret Ratio Current Liabilities
Acid Test/Quick Ratio
Quick Assets Quick Ratio Current Liabilities
18
（2） Leverage Ratios
cash flows from Operating activities cash flows from investment activities cash flows from financing activities
+proceeds from issue of new shares +proceeds from issue of new bonds or loans -repayment of debts（excluding interest payments） -dividend paid to stockholders 10
《存货周转率》PPT课件
Ratio Analysis Du Pont system
Effects of improving ratios
Limitations of ratio analysis
Qualitative factors
Inventory turnover ratio (存貨週轉率) DSO=Days Sales Outstanding (銷售流通
天數) FA turnover (固定資產周轉率) TA turnover (總資產週轉率)
精选PPT
3-66
Asset Management Ratios
Inventory turnover ratio = Sales / Inventories = $3,000 / $615 = 4.9x
TA turnover = 總資產週轉率 = 衡量公司所有資產的週轉情況 = Sales / Total assets = $3,000 / $2,000 = 1.5x
Industry average=1.8x
精选PPT
3-1122
Evaluating the FA turnover and TA turnover ratios
精选PPT
3-33
Liquidity Ratio.
Current ratio liabilities
= Current assets / Current
= $ 1,000/ $ 310
= 3.2 x
Industry average=4.2 x
精选PPT
3-44
Comments on current ratio
ANALYSIS OF FINANCIAL STATEMENTS
C HAPTER 11A NALYSIS OF F INANCIAL S TATEMENTS O VERVIEWFinancial statement analysis involves a comparison of a firm’s performance with that of other firms in the same line of business. Financial analysis identifies a firm’s relative strengths and weaknesses and suggests actions the firm might enact to take advantage of its strengths and correct its weaknesses in the future. Financial statement analysis is not only important for the firm’s managers, it also is important for the firm’s investors and creditors. Internally, financial managers use the information provided by financial analysis to help make financing and investment decisions to maximize the firm’s value. Externally, stockholders and creditors use financial statement analysis to evaluate the attractiveness of the firm as an investment by examining its ability to meet its current and expected future financial obligations.Financial statement analysis involves a study of the relationships between income statement and balance sheet accounts, how these relationships change over time (or trend analysis), and how a particular firm compares with other firms in its industry (comparative ratio analysis or benchmarking). Although financial statement analysis has limitations, when used with care and judgment, it can provide some very useful insights into the operations of a company.O UTLINEA firm’s annual report to shareholders presents two important types of information. The first is a verbal statement of the company’s recent operations and its expectations for the coming year. The second is a set of quantitative financial statements that report what actually happened to the firm’s financial position, earnings, and dividends over the past few years. The information contained in an annual report is used by investors to form expectations about future earnings and dividends.The income statement, often referred to as the profit and loss statement, summarizes the firm’s revenues and expenses during the accounting period. Earnings per share (EPS) is called “the bottom line,” denoting that of all the items on the income statement, EPS is the most important.It is important to remember that not all of the amounts shown on the income statement represent cash flows. Revenues are recognized when they are earned, not when the cashis received, and expenses are realized when they are incurred, not when the cash is paid.CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS220 The balance sheet lists the firm’s assets and the claims against those assets. It portrays thefirm’s financial position at a specific point in time.Assets, found on the left-hand side of the balance sheet, are typically shown in the orderof their liquidity, or the length of time it typically takes to convert them to cash.Claims, found on the right-hand side, are generally listed in the order in which theymust be paid.Only cash represents actual money. Noncash assets should produce cash flowseventually, but they do not represent cash in hand, and the amount of cash they wouldbring if they were sold today could be higher or lower than the values at which they arecarried on the books.Claims against the assets consist of liabilities and common stockholders’ equity, or networth , a residual representing the amount stockholders would receive if both assetscould be sold and liabilities paid at book values. Thus, Assets – Liabilities =Stockholders’ equity.The risk of asset value fluctuations is borne by the stockholders.Most financial analysts combine preferred stock with debt when evaluating a firm’sfinancial position, because the preferred dividend is considered a fixed obligation of thefirm.The common equity section of the balance sheet is divided into three accounts:common stock, paid-in capital, and retained earnings.Retained earnings are built up over time as the firm reinvests a part of its earningsrather than paying all earnings out as dividends.Common stock and paid-in capital accounts arise from the issuance of stock to raisecapital.The breakdown of the common equity accounts shows whether the companyactually earned the funds reported in its equity accounts or whether the funds camemainly from selling stock.Not every firm uses the same method to determine the account balances shown on thebalance sheet. Thus, users of financial statements must be aware that more than oneaccounting alternative is available for constructing financial statements.The balance sheet may be thought of as a snapshot of the firm’s financial position at apoint in time (for example, at the end of the year), while the income statement reportson operations over a period of time (for example, one calendar year).The statement of retained earnings reports changes in the common equity accounts between balance sheet dates.The balance sheet account “Retained earnings” represents a claim against assets, notassets per se.Retained earnings as reported on the balance sheet do not represent cash and are not“available” for the payment of dividends or anything else. Retained earnings representfunds that have already been reinvested in operating assets of the firm.CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS221In finance the emphasis is on the cash flows that the company is expected to generate. Thefirm’s net income is important, but cash flows are even more important because dividends must be paid in cash, and cash is also necessary to pay the firm’s obligations and to purchase the assets required to continue operations.A firm’s cash flows include cash receipts and cash disbursements.Depreciation results because we want to match revenues and expenses to compute afirm’s income, not because we want to match cash inflows and cash outflows.Depreciation is a noncash charge used to calculate net income, so if net income is usedto obtain an estimate of the net cash flow from operations, depreciation must be addedback to net income.A stock’s value is based on the cash flows that investors expect it to provide in the future.The cash flows provided by the stock itself are the expected future dividends stream, andthat expected dividends stream provides the fundamental basis for the stock’s value.Because dividends are paid in cash, a company’s ability to pay dividends depends on itscash flows, which are generally related to accounting profit , or net income reported onthe income statement.The ability to take advantage of growth opportunities often depends on the availabilityof the cash needed to buy new assets, and the cash flows from existing assets are oftenthe primary source of the funds used to make profitable new investments.There are two classes of cash flows:Operating cash flows arise from normal operations, and they are the differencebetween cash collections and cash expenses, including taxes paid.Other cash flows arise from borrowing, from the sale of fixed assets, or from theissuance or repurchase of common stock.The statement of cash flows reports the impact of a firm’s operating, investing, and financing activities on cash flows over an accounting period.Net income plus depreciation is the primary operating cash flow.In order to adjust the estimate of cash flows obtained from the income statement and toaccount for cash flows not reflected in the income statement, one needs to examine theimpact of changes in the balance sheet accounts during the year.Sources of cash include an increase in a liability or equity account or a decrease inan asset account.Uses of cash include a decrease in a liability or equity account or an increase in anasset account.Each balance sheet change is classified as resulting from operations (those activitiesassociated with the production and sale of goods and services), long-term investments(cash flows arising from the purchase or sale of plant, property, and equipment), orfinancing activities (cash flows arising from debt and/or common stock).CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS222 The cash inflows and outflows from these three activities are summed to determinetheir impact on the firm’s liquidity position, which is measured by the change in thecash and marketable securities accounts.Financial statements are used to help predict a firm’s future financial position and to determine expected earnings and dividends. From an investor’s standpoint, predicting the future is what financial statement analysis is all about. From management’s standpoint, financial statement analysis is useful both as a way to anticipate future conditions and, more importantly, as a starting point for planning actions that will influence the future course of events. An analysis of the firm’s ratios is the first step in a financial analysis. Ratios are designed to show relationships between financial statement accounts within firms and between firms.A liquid asset can be easily converted to cash without significant loss of its original value.Converting assets, especially current assets such as inventory and receivables, to cash is the primary means by which a firm obtains funds needed to pay its current bills.Therefore, a firm’s “liquid position” deals with the question of how well the firm isable to meet its current obligations.Liquidity ratios are used to measure a firm’s ability to meet its current obligations as they come due.The current ratio indicates the extent to which the claims of short-term creditors arecovered by short-term assets. It is determined by dividing current assets by currentliabilities.The current ratio is the most commonly used measure of short-term solvency.The quick , or acid test, ratio is calculated by deducting inventories from current assetsand then dividing the remainder by current liabilities.Inventories are excluded because it may be difficult to liquidate them at their fullbook value.The quick ratio is a variation of the current ratio.Asset management ratios measure how effectively a firm is managing its assets and whether or not the level of those assets is properly related to the level of operations as measured by sales.The inventory turnover ratio is defined as cost of goods sold divided by inventories. Itis often necessary to use the average inventory figure rather than the year-end figure,especially if a firm’s business is highly seasonal or if there has been a strong upward ordownward sales trend during the year.The days sales outstanding (DSO) is used to evaluate the firm’s ability to collect itscredit sales in a timely manner. It is calculated by dividing average daily sales intoaccounts receivable to find the number of days’ sales tied up in receivables. Thus, theDSO represents the average length of time that the firm must wait after making a salebefore receiving cash, which is the average collection period.CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS223 The DSO can also be evaluated by comparison with the terms on which the firmsells its goods.The fixed assets turnover ratio is the ratio of sales to net fixed assets. It measures howeffectively the firm uses its plant and equipment to generate sales.The total assets turnover ratio is calculated by dividing sales by total assets. Itmeasures the turnover of all the firm’s assets.Debt management ratios measure the extent to which a firm is using debt financing, orfinancial leverage , and the degree of safety afforded to creditors. Decisions about the use of debt require firms to balance higher expected returns against increased risk.The debt ratio , or ratio of total debt to total assets, measures the percentage of thefirm’s assets financed by creditors.The lower the ratio, the greater the protection afforded creditors in the event ofliquidation.The owners can benefit from leverage because it magnifies earnings, thus the returnto stockholders. Too much debt often leads to financial difficulty, which eventuallymight cause bankruptcy.The times-interest-earned (TIE) ratio is determined by dividing earnings before interestand taxes (EBIT) by interest charges. The TIE measures the extent to which operatingincome can decline before the firm is unable to meet its annual interest costs.Failure to meet its interest obligation can bring legal action by the firm’s creditors,possibly resulting in bankruptcy.EBIT is used in the numerator. Because interest is paid with pretax dollars, thefirm’s ability to pay current interest is not affected by taxes.The fixed charge coverage ratio is similar to the TIE ratio, but it is more inclusivebecause it recognizes that many firms lease assets and have debt sinking fundpayments.In the numerator of the fixed charge coverage ratio, the lease payments are added toEBIT because we want to determine the firm’s ability to cover its fixed chargesfrom the income generated before any fixed charges are deducted.Profitability is the net result of a number of policies and decisions. Profitability ratios show the combined effects of liquidity, asset management, and debt management on operating results.The net profit margin on sales is calculated by dividing net income by sales, and itgives the profit per dollar of sales.The operating profit margin is the ratio of EBIT (operating income) to sales.The return on total assets (ROA) is the ratio of net income to total assets; it provides anidea of the overall return on investments earned by the firm.The return on common equity (ROE) measures the rate of return on commonstockholders’ investment. It is equal to net income divided by common equity.CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTSMarket value ratios relate the firm’s stock price to its earnings and book value per share, and thus give management an indication of what investors think of the company’s past performance and future prospects. If the firm’s liquidity, asset management, debt management, and profitability ratios are all good, then its market value ratios will be high, and its stock price will probably be as high as can be expected.The price/earnings (P/E) ratio, or market price per share divided by earnings per share, shows how much investors are willing to pay per dollar of reported profits. Other thingsheld constant, P/E ratios are higher for firms with high growth prospects, but they arelower for riskier firms.The market/book (M/B) ratio, defined as market price per share divided by book value per share, gives another indication of how investors regard the company. Higher M/Bratios are generally associated with firms that have a high rate of return on commonequity.It is important to analyze trends in ratios as well as their absolute levels. Trend analysis can provide clues as to whether the firm’s financial situation is improving or deteriorating relative to past performance.A simple approach to trend analysis is to construct graphs containing both the firm’s ratiosand the industry averages for the past 5 years. Using this approach, we can examine both the direction of the movement in, and the relationships between, the firm’s ratios and the industry averages.A modified Du Pont chart shows the relationships among return on investment, assets turnover, net profit margin, and leverage.The left side of the chart develops the profit margin on sales. The right side lists the various categories of assets, totals them, and then divides sales by total assets to find the total assets turnover ratio.Net profit margin times total assets turnover is called the Du Pont equation. This equation gives the rate of return on assets (ROA): ROA = Net profit margin × Total assets turnover.The extended Du Pont equation uses the relationship between ROA and ROE to derive: ROE = Net profit margin × Total assets turnover × Equity multiplier.The firm can use the Du Pont system to analyze ways of improving the firm’s performance.Comparative ratio analysis (benchmarking) is useful in comparing a firm’s ratios with those of other firms in the same industry. Sources for such ratios include Dun & Bradstreet, Robert Morris Associates, the U.S. Commerce Department, and trade associations.224CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS When you select a comparative data source, you should be sure that your emphasis is similar to that of the agency whose ratios you plan to use.Additionally, there are often definitional differences in the ratios presented by different sources, so before using a source, be sure to verify the exact definitions of the ratios to ensure consistency with your work.There are some inherent problems and limitations to ratio analysis that necessitate care and judgment.Ratios are often not useful for analyzing the operations of large firms that operate in many different industries because comparative ratios are not meaningful.The use of industry averages may not provide a very challenging target for high-level performance.Inflation might distort firms’ balance sheets. For this reason, the analysis of a firm over time, or a comparative analysis of firms of different ages, can be misleading.Ratios may be distorted by seasonal factors, or manipulated by management to give the impression of a sound financial condition (“window dressing”).Different accounting practices can distort comparisons.Many ratios can be interpreted in different ways, and whether a particular ratio is good or bad should be based upon a complete financial statement analysis rather than the level of a single ratio at a single point in time.S ELF-TEST Q UESTIONSDefinitional1.Of all its communications with shareholders, a firm’s ________ report is generally themost important.2.The income statement reports the results of operations during the past year, the mostimportant item being __________ _____ _______.3.The _________ _______ lists the firm’s assets as well as claims against those assets.4.Typically, assets are listed in order of their ___________, while liabilities are listed in theorder in which they must be paid.225CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS2265.Assets – Liabilities = _____ worth, or _______________ equity.6. The three accounts that normally make up the common equity section of the balance sheetare common stock, ______-____ capital, and __________ __________.7. __________ __________ as reported on the balance sheet represent income earned by thefirm in past years that has not been paid out as dividends.8. Retained earnings are generally reinvested in ___________ ________ and are not held inthe form of cash.9. In finance the emphasis is on the ______ _______ that the company is expected togenerate.10. Depreciation is a(n) _________ charge used to calculate net income, so if net income isused to obtain an estimate of the net cash flow from operations, depreciation must be added back to net income.11. ___________ ______ _______ arise from normal operations, and they are the differencebetween cash collections and cash expenses, including taxes paid.12. The statement of cash flows reports the impact of a firm’s ___________, ___________,and ___________ activities on cash flows over an accounting period.13. The current and acid-test ratios are examples of ___________ ratios. They measure afirm’s ability to meet its _________ obligations as they come due.14. The days sales outstanding (DSO) ratio is found by dividing average sales per day intoaccounts ____________. The DSO is the length of time that a firm must wait after making a sale before it receives ______, which is the _________ ____________ ________.15. Debt management ratios are used to evaluate a firm’s use of financial __________.16. The debt ratio, which is the ratio of total ______ to total ________, measures thepercentage of the firm’s assets financed by creditors. The _______ the ratio, the greater the protection afforded creditors in the event of liquidation.17. The _______-__________-________ ratio, calculated by dividing earnings before interestand taxes by the amount of interest charges, measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs.18. The combined effects of liquidity, asset management, and debt management on operatingCHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTSresults are measured by _______________ ratios.19.Dividing net income by sales gives the _____ ________ ________ on sales.20.The ________ ____ _______ ________ provides an idea of the overall return oninvestments earned by the firm.21.The ________ ____ ________ ________ measures the rate of return on commonstockholders’ investment.22.The _______/__________ ratio measures how much investors are willing to pay for eachdollar of a firm’s current income.23.Firms with higher rates of return on stockholders’ equity tend to sell at relatively high ratiosof ________ price to ______ value.24.Individual ratios are of little value in analyzing a company’s financial condition. Moreimportant are the _______ of a ratio over time and the comparison of the company’s ratios to __________ average ratios.25. A modified ____ ______ chart shows the relationships among return on investment, assetsturnover, net profit margin, and leverage.26.Return on assets is a function of two variables, _____ ________ ________ and _______________ turnover.27.Analyzing a particular ratio over time for an individual firm is known as _______ analysis. Conceptual38. A high quick ratio is always a good indication of a well-managed liquidity position.a. Trueb. False39.The fact that 70 percent of intercorporate dividends received by a corporation is excludedfrom taxable income has encouraged debt financing over equity financing.a. Trueb. False40.International Appliances Inc. has a current ratio of 0.5. Which of the following actionswould improve (increase) this ratio?227CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTSe cash to pay off current liabilities.b.Collect some of the current accounts receivable.e cash to pay off some long-term debt.d.Purchase additional inventory on credit (accounts payable).e.Sell some of the existing inventory at cost.41.Refer to Self-Test Question 40. Assume that International Appliances has a current ratio of1.2. Now, which of the following actions would improve (increase) this ratio?e cash to pay off current liabilities.b.Collect some of the current accounts receivable.e cash to pay off some long-term debt.d.Purchase additional inventory on credit (accounts payable).e cash to pay for some fixed assets.42.Examining the ratios of a particular firm against the same measures for a group of firmsfrom the same industry, at a point in time, is an example ofa. Trend analysis.parative ratio analysis.c. Du Pont analysis.d. Simple ratio analysis.e.Industry analysis.228CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS22943. Which of the following statements is correct?a. Having a high current ratio and a high quick ratio is always a good indication that afirm is managing its liquidity position well.b. A decline in the inventory turnover ratio suggests that the firm’s liquidity position isimproving.c. If a firm’s times-interest-earned ratio is relatively high, then this is one indication thatthe firm should be able to meet its debt obligations.d. Since ROA measures the firm’s effective utilization of assets (without considering howthese assets are financed), two firms with the same EBIT must have the same ROA.e. If, through specific managerial actions, a firm has been able to increase its ROA, then,because of the fixed mathematical relationship between ROA and ROE, it must alsohave increased its ROE.44. Which of the following statements is correct?a. Suppose two firms with the same amount of assets pay the same interest rate on theirdebt and earn the same rates of return on their assets and that their ROAs are positive.However, one firm has a higher debt ratio. Under these conditions, the firm with thehigher debt ratio will also have a higher rate of return on common equity.b. One of the problems of ratio analysis is that the relationships are subject tomanipulation. For example, we know that if we use some cash to pay off some of ourcurrent liabilities, the current ratio will always increase, especially if the current ratio isweak initially, for example, below 1.0.c. Generally, firms with high net profit margins have high asset turnover ratios and firmswith low net profit margins have low turnover ratios; this result is exactly as predictedby the extended Du Pont equation.d. Firms A and B have identical earnings and identical dividend payout ratios. If FirmA’s growth rate is higher than Firm B’s, then Firm A’s P/E ratio must be greater thanFirm B’s P/E ratio.e. Each of the above statements is false.45. An individual with substantial personal wealth and income is considering the possibility ofopening a new business. The business will have a relatively high degree of risk, and lossesmay be incurred for the first several years. Which legal form of business organizationwould probably be best?a. Proprietorship d. S corporationb. Corporation e. Limited partnershipc. PartnershipCHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS230S ELF-TEST P ROBLEMS(The following financial statements apply to the next six problems.)Roberts Manufacturing Balance SheetDecember 31, 2005(Dollars in Thousands)Cash $ 200 Accounts payable $ 205Receivables 245 Notes payable 425Inventory 625 Other current liabilities 115Total current assets $1,070 Total current liabilities $ 745Net fixed assets 1,200 Long-term debt 420Common equity 1,105Total assets $2,270 Total liabilities and equity $2,270Roberts ManufacturingIncome Statement for Year Ended December 31, 2005(Dollars in Thousands)Sales $2,400 Cost of goods sold:Materials $1,000Labor 600Heat, light, and power 89Indirect labor 65Depreciation 80 1,834Gross profit $ 566Selling expenses 175General and administrative expenses 216Earnings before interest and taxes (EBIT) $ 175Less interest expense 35Earnings before taxes (EBT) $ 140Less taxes (40%) 56Net income (NI) $ 841. Calculate the liquidity ratios, that is, the current ratio and the quick ratio.a. 1.20; 0.60b. 1.20; 0.80c. 1.44; 0.60d. 1.44; 0.80e. 1.60; 0.60CHAPTER 11: ANALYSIS OF FINANCIAL STATEMENTS 2.Calculate the asset management ratios, that is, the inventory turnover ratio, fixed assetsturnover, total assets turnover, and days sales outstanding.a. 2.93; 2.00; 1.06; 36.75 days d. 2.93; 2.00; 1.24; 34.10 daysb. 2.93; 2.00; 1.06; 35.25 days e. 2.93; 2.20; 1.48; 34.10 daysc. 2.93; 2.00; 1.06; 34.10 days3.Calculate the debt management ratios, that is, the debt and times-interest-earned ratios.a. 0.39; 3.16b. 0.39; 5.00c. 0.51; 3.16d. 0.51; 5.00e. 0.73; 3.164.Calculate the profitability ratios, that is, the net profit margin on sales, return on totalassets, and return on common equity.a. 3.50%; 4.25%; 7.60% d. 3.70%; 3.50%; 8.00%b. 3.50%; 3.70%; 7.60% e. 4.25%; 3.70%; 7.60%c. 3.70%; 3.50%; 7.60%5.Calculate the market value ratios, that is, the price/earnings ratio and the market/book valueratio. Roberts had an average of 10,000 shares outstanding during 2005, and the stock price on December 31, 2005, was $40.00.a. 4.21; 0.36b. 3.20; 1.54c. 3.20; 0.36d. 4.76; 1.54e. 4.76; 0.36e the Du Pont equation to determine Roberts’ return on assets.a. 7.6%b. 7.9%c. 6.2%d. 3.7%e. 4.5%7.Lewis Inc. has sales of $2 million per year, all of which are credit sales. Its days salesoutstanding is 42 days. What is its average accounts receivable balance?a. $233,333b. $266,667c. $333,333d. $350,000e. $366,6678.Southeast Jewelers Inc. sells only on credit. Its days sales outstanding is 60 days, and itsaverage accounts receivable balance is $500,000. What are its sales for the year?a. $1,500,000b. $3,000,000c. $2,000,000d. 2,750,000e. $3,225,0009. A firm has total interest charges of $20,000 per year, sales of $2 million, a tax rate of 40percent, and a net profit margin of 6 percent. What is the firm’s times-interest-earned ratio?231。
Financialstatementratioanalysis财务报比率分析
F i n a n c i a l s t a t e m e n t财务报表ratio analysis 比率分析1.gross margin 毛利率Show the percentage of each sales dollar earned as gross profit.2.operating profit 经营活动利润率(税前净利率)Show the percentage of each sales dollar earned as net profit before pay income tax.3.rate of return on net sales (net profit margin) 销售净利率Show the percentage of each sales dollar earned as net profit after pay income tax.4.rate of return on total assets (ROA) 总资产报酬率Measures how profitably a company uses its assets5.rate of return on common stockholders’ equity (ROE) 所有者权益报酬率（净资产报酬率）Gauges how much income is earned with the money invested by the common shareholders.6.earning per share (EPS) 每股收益Give the amount of net income earned for each share of the company’s common stock outstanding.1.measuring ability to pay current liabilities 衡量流动负债偿还能力(1)current ratio 流动比率Measures ability to pay current liabilities with current assets.(2)quick ratio (acid test ratio) 速动比率（酸性测试比率）Shows ability to pay all current liabilities if they come due immediately 2.measuring ability to pay non-current liabilities衡量非流动负债偿还能力(1)debt ratio 负债率Indicated percentage of assets financed with debt(2)times interest earned ratio 利息保障倍数Measures the number of times operating income can cover interest expense.1.inventory turnover 存货周转率Indicated the selling ability of inventory2.accounts receivable turnover 应收账款周转率Accounts receivable turnover measures the ability to collect cash from credit customers.3.accounts payable turnover 应付账款周转率Accounts payable turnover measures the number of times per year that the company pays off its accounts payable.4.assets turnover 总资产周转率Asset turnover measures the amount of net sales generated for each dollar invested in assets.。
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Firms can employ “window dressing” techniques to make their financial statements look stronger. Different accounting practices can distort comparisons. It is difficult to generalize about whether a particular ratio is “good” or “bad.” A firm may have some ratios that look “good” and others that look “bad,” making it difficult to tell whether the company is, on balance, strong or weak.
c) d)
3. Debt Management Ratios
a) b)
Debt Ratio : measures the percentage of funds provided by creditors. Times-interest-earned (TIE) ratio : measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs. EBITDA Coverage Ratio : A ratio whose numerator includes all cash flows available to meet fixed financial charges and whose denominator includes all fixed financial charges.
RATIO ANALYSIS
Financial statements report both on a firm’s position at a point in time and on its operations over some past period. However, the real value of financial statements lies in the fact that they can be used to help predict future earnings and dividends.
2. Asset Management
Ratios
The second group of ratios, the asset management ratios, measures how effectively the firm is managing its assets.
a) b)
Inventory Turnover Ratio : The inventory turnover ratio is defined as sales divided by inventories. Days Sales Outstanding (DSO) : indicates the average length of time the firm must wait after making a sale before it receives cash. Fixed Assets Turnover Ratio : measures how effectively the firm uses its plant and equipment. Total Assets Turnover Ratio : measures the turnover of all the firm’s assets.
LOOKING BEYONDቤተ መጻሕፍቲ ባይዱTHE NUMBERS
Are the company’s revenues tied to one key customer? To what extent are the company’s revenues tied to one key product? To what extent does the company rely on a single supplier?. What percentage of the company’s business is generated overseas?
5. Market Value Ratios
a)
b)
Price/Earnings Ratio : The ratio of the price per share to earnings per share; shows the dollar amount investors will pay for $1 of current earnings. Price/Cash Flow Ratio : The ratio of price per share divided by cash flow per share; shows the dollar amount investors will pay for $1 of cash flow. Market/Book (M/B) Ratio : The ratio of a stock’s market price to its book value.
COMPARATIVE RATIOS and “BENCHMARKING”
Ratio analysis involves comparisons — a company’s ratios are compared with those of other firms in the same industry, that is, to industry average figures.
c)
4. Profitability Ratios
a)
b)
c)
d)
The profit margin on sales : calculated by dividing net income by sales, gives the profit per dollar of sales. Basic earning power (BEP) : This ratio shows the raw earning power of the firm’s assets, before the influence of taxes and leverage, and it is useful for comparing firms with different tax situations and different degrees of financial leverage. Return on Total Assets (ROA) : The ratio of net income to total assets measures the return on total assets (ROA) after interest and taxes. Return on Common Equity (ROE) : The ratio of net income to common equity; measures the rate of return on common stockholders’ investment.
c)
TREND ANALYSIS
An analysis of a firm’s financial ratios over time; used to estimate the likelihood of improvement or deterioration in its financial condition.
FINANCE
Analysis of Financial Statements «Ratios»
INTRODUCTION
The primary goal of financial management is to maximize the stock price, not to maximize accounting measures such as net income or EPS. However, accounting data do influence stock prices, and to understand why a company is performing the way it is and to forecast where it is heading, one needs to evaluate the accounting information reported in the financial statements.
THE DU PONT CHART AND EQUATION
Du Pont Chart : A chart designed to show the relationships among return on investment, asset turnover, profit margin, and leverage. Du Pont Equation : A formula which shows that the rate of return on assets can be found as the product of the profit margin times the total assets turnover.
1. Liquidity Ratios
Liquid Asset : An asset that can be converted to cash quickly without having to reduce the asset’s price very much.