Financial-Accounting-An-Integrated-Approach-6th--chapter-15-ppt(ppt文档).ppt
《Financial-Accounting-An-Integrated-Approach-6th--chapter-15-ppt(ppt文档).ppt》由会员分享,可在线阅读,更多相关《Financial-Accounting-An-Integrated-Approach-6th--chapter-15-ppt(ppt文档).ppt(45页珍藏版)》请在咨信网上搜索。
1、Chapter 15Financial statement analysisLearning objectivesDescribe the objectives of financial statement analysis.Identify the limitations of financial statement analysis.Prepare common size statements.Calculate commonly used ratios to analyse a firms profitability,activity,liquidity and financial st
2、ructure.Use ratios to analyse and evaluate a firms financial performance and financial position.Explain and use the Du Pont system of integrative ratio analysis.Who uses financial statement analysis?Managers,for strategic and operational decision making.Investors and financial analysts,to evaluate m
3、anagement performance and to make investment decisions.Creditors,to make lending decisions.Auditors,to assess the reasonableness of financial statement values.Suppliers,to assess opportunities and ability to repay.What to do before you start analysingLearn about the companyConsider the decision to b
4、e made(e.g.invest,lend,etc.)Calculate relevant ratiosObtain comparative data(e.g.previous period,competitors,industry)Sources of information about a companyFinancial statements are only one source of information about a company.Other sources of information include:financial newspaperspress releasesi
5、nterneteconomy-wide factorsinformation about other companies.What are we trying to achieve?Each user of financial statements will have different requirements:Some might be interested in profitability,others may be more interested in the companys ability to pay its short-term debts.Other financial st
6、atement users might be interested in the companys ability to repay its long-term borrowings.All of these are related.For example,a companys ability to pay long-term debts will be related to whether it will be able to pay short-term debts and generate sufficient profit.Common size financial statement
7、sThe preparation of common size financial statements involves the presentation of all balance sheet items as a percentage of total assets and profit and loss items as a percentage of total sales.Common size financial statements attempt to factor out the size of the company.This assists in comparing
8、companies and analysing trends for a single company.Common size financial statementsIllustration2016$2015Company ASales600 000500 000Cost of goods sold457 200384 000Company BSales400 000300 000Cost of goods sold319 200217 800Common size financial statements20162015$%$%Company ASales600 000100.0500 0
9、00100.0Cost of goods sold457 20076.2384 00076.8Gross margin142 80023.8116 00023.2Company BSales400 000100.0300 000100.0Cost of goods sold319 20079.8217 80072.6Gross margin80 80020.282 20027.4Common size financial statementsRatio analysisThe calculation of a ratio simply involves dividing the dollar
10、amount of one item with the dollar amount of another.Only some relationships will,however,be meaningful.Careful thought must be applied to determining which ratios will be useful to the specific analysis.Ratio analysisKey attributes analysed using ratio analysis include:profitability:involves the co
11、mpanys effectiveness in earning profits and providing a return on shareholders investmentsactivity turnover ratio:involves the efficiency with which the company utilises its resources to generate revenues and profitsRatio analysisliquidity:involves the companys ability to meet its financial obligati
12、ons on a timely basisfinancial structure:involves the relative balance of debt and owners equity as sources of the companys financing.Profitability ratiosProfitability ratios aim to give the financial statement user some indication of the companys record of generating profits and its potential for g
13、enerating profits in the future.Profitability ratios:return on equity return on assets profit margin gross margin earnings per share cash flow to total assets price/earnings ratio dividend payout ratioProfitability ratios(examples)Return on Operating profit after tax assets Total assets Alternative:
14、Return on Earnings before interest and tax assets Total assetsReturn on Operating profit after tax equity Shareholders equityBy comparing these two ratios,it is possible to obtain some indication of the entitys use of leverage(or borrowings).If return on equity is greater than return on assets,the c
15、ompany is using leverage to the benefit of shareholders.Profitability ratiosThese ratios should exceed 0,representing a positive return.You would prefer their values to be as high as possible.Values of these ratios generally range between 5%and 20%.ROE will generally exceed ROA in proportion to the
16、amount of leverage.Trend analysisThoughts on trend analysis and cross-company comparisons with ROE and ROA:Ideally,the trend of a companys ROE and ROA will be stable or increasing.If ROE or ROA are negative,or have declined materially relative to prior years or are lower than their direct competitor
17、s,then you should read the narrative portions of the annual report and other sources to determine how management are responding to this problem.Trend analysisROE and ROA will naturally tend to be lower in highly competitive industries,and higher in industries where competition is less intense.Cross-
18、company comparisons of ROE and ROA are most meaningful when the companies are direct competitors offering similar products.Some variations in calculating ratiosIn ratios where a P&L statement value is divided by a balance sheet value(e.g.ROA,ROE,turnover ratios),the balance sheet value employed migh
19、t be either the(1)beginning,(2)ending,or(3)average value for the year.In ratios that use a measure of profit,the measure used might be(1)operating profit after tax,(2)operating profit before tax,or(3)operating profit before tax and interest(EBIT).Profitability ratios(examples)The return on assets ma
20、y be further analysed by examining the profit margin and asset turnover using the Dupont relationship.Operating profitOperating profitSales revenue Total assets Sales revenue Total assets Profit margin Asset turnoverThe relationship highlights that the return on total assets may be affected by chang
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Financial Accounting An Integrated Approach th chapter 15 ppt 文档
1、咨信平台为文档C2C交易模式,即用户上传的文档直接被用户下载,收益归上传人(含作者)所有;本站仅是提供信息存储空间和展示预览,仅对用户上传内容的表现方式做保护处理,对上载内容不做任何修改或编辑。所展示的作品文档包括内容和图片全部来源于网络用户和作者上传投稿,我们不确定上传用户享有完全著作权,根据《信息网络传播权保护条例》,如果侵犯了您的版权、权益或隐私,请联系我们,核实后会尽快下架及时删除,并可随时和客服了解处理情况,尊重保护知识产权我们共同努力。
2、文档的总页数、文档格式和文档大小以系统显示为准(内容中显示的页数不一定正确),网站客服只以系统显示的页数、文件格式、文档大小作为仲裁依据,平台无法对文档的真实性、完整性、权威性、准确性、专业性及其观点立场做任何保证或承诺,下载前须认真查看,确认无误后再购买,务必慎重购买;若有违法违纪将进行移交司法处理,若涉侵权平台将进行基本处罚并下架。
3、本站所有内容均由用户上传,付费前请自行鉴别,如您付费,意味着您已接受本站规则且自行承担风险,本站不进行额外附加服务,虚拟产品一经售出概不退款(未进行购买下载可退充值款),文档一经付费(服务费)、不意味着购买了该文档的版权,仅供个人/单位学习、研究之用,不得用于商业用途,未经授权,严禁复制、发行、汇编、翻译或者网络传播等,侵权必究。
4、如你看到网页展示的文档有www.zixin.com.cn水印,是因预览和防盗链等技术需要对页面进行转换压缩成图而已,我们并不对上传的文档进行任何编辑或修改,文档下载后都不会有水印标识(原文档上传前个别存留的除外),下载后原文更清晰;试题试卷类文档,如果标题没有明确说明有答案则都视为没有答案,请知晓;PPT和DOC文档可被视为“模板”,允许上传人保留章节、目录结构的情况下删减部份的内容;PDF文档不管是原文档转换或图片扫描而得,本站不作要求视为允许,下载前自行私信或留言给上传者【快乐****生活】。
5、本文档所展示的图片、画像、字体、音乐的版权可能需版权方额外授权,请谨慎使用;网站提供的党政主题相关内容(国旗、国徽、党徽--等)目的在于配合国家政策宣传,仅限个人学习分享使用,禁止用于任何广告和商用目的。
6、文档遇到问题,请及时私信或留言给本站上传会员【快乐****生活】,需本站解决可联系【 微信客服】、【 QQ客服】,若有其他问题请点击或扫码反馈【 服务填表】;文档侵犯商业秘密、侵犯著作权、侵犯人身权等,请点击“【 版权申诉】”(推荐),意见反馈和侵权处理邮箱:1219186828@qq.com;也可以拔打客服电话:4008-655-100;投诉/维权电话:4009-655-100。
链接地址:https://www.zixin.com.cn/doc/2670486.html