财务管理PPT ch06 financial statement analysis

6-1Chapter6FinancialStatementAnalysis©2001Prentice-Hall,Inc.FundamentalsofFinancialManagement,11/eCreatedby:GregoryA.Kuhlemeyer,Ph.D.CarrollCollege,Waukesha,WI6-2FinancialStatementAnalysisFinancialStatementsAPossibleFrameworkforAnalysisRatioAnalysisTrendAnalysisCommon-SizeandIndexAnalysis6-3ExamplesofExternalUsesofStatementAnalysisTradeCreditors--Focusontheliquidityofthefirm.Bondholders--Focusonthelong-termcashflowofthefirm.Shareholders--Focusontheprofitabilityandlong-termhealthofthefirm.6-4ExamplesofInternalUsesofStatementAnalysisPlan--Focusonassessingthecurrentfinancialpositionandevaluatingpotentialfirmopportunities.Control--Focusonreturnoninvestmentforvariousassetsandassetefficiency.Understand--Focusonunderstandinghowsuppliersoffundsanalyzethefirm.6-5PrimaryTypesofFinancialStatementsIncomeStatementAsummaryofafirm’srevenuesandexpensesoveraspecifiedperiod,endingwithnetincomeorlossfortheperiod.BalanceSheetAsummaryofafirm’sfinancialpositiononagivendatethatshowstotalassets=totalliabilities+owners’equity.6-6BasketWonders’BalanceSheet(AssetSide)a.Howthefirmstandsonaspecificdate.b.WhatBWowned.c.Amountsowedbycustomers.d.Futureexpenseitemsalreadypaid.e.Cash/likelyconvertibletocashwithin1year.f.Originalamountpaid.g.Acc.deductionsforwearandtear.CashandC.E.$90Acct.Rec.c394Inventories696PrepaidExpd5AccumTaxPrepay10CurrentAssetse$1,195FixedAssets(@Cost)f1030Less:Acc.Depr.g(329)NetFix.Assets$701Investment,LT50OtherAssets,LT223TotalAssetsb$2,169BasketWondersBalanceSheet(thousands)Dec.31,2003a6-7BasketWonders’BalanceSheet(LiabilitySide)a.Note,Assets=Liabilities+Equity.b.WhatBWowedandownershipposition.c.Owedtosuppliersforgoodsandservices.d.Unpaidwages,salaries,etc.e.Debtspayable1year.f.Debtspayable1year.g.Originalinvestment.h.Earningsreinvested.NotesPayable$290Acct.Payablec94AccruedTaxesd16OtherAccruedLiab.d100CurrentLiab.e$500Long-TermDebtf530Shareholders’EquityCom.Stock($1par)g200AddPdinCapitalg729RetainedEarningsh210TotalEquity$1,139TotalLiab/Equitya,b$2,169BasketWondersBalanceSheet(thousands)Dec.31,20036-8BasketWonders’IncomeStatementa.Measuresprofitabilityoveratimeperiod.b.Received,orreceivable,fromcustomers.c.Salescomm.,adv.,officers’salaries,etc.d.Operatingincome.e.Costofborrowedfunds.f.Taxableincome.g.Amountearnedforshareholders.NetSales$2,211CostofGoodsSoldb1,599GrossProfit$612SG&AExpensesc402EBITd$210InterestExpensee59EBTf$151IncomeTaxes60EATg$91CashDividends38IncreaseinRE$53BasketWondersStatementofEarnings(inthousands)forYearEndingDecember31,2003a6-9FrameworkforFinancialAnalysisAnalyticalToolsUsedSourcesandUsesStatementStatementofCashFlowsCashBudgets1.Analysisofthefundsneedsofthefirm.Trend/SeasonalComponentHowmuchfundingwillberequiredinthefuture?Isthereaseasonalcomponent?6-10FrameworkforFinancialAnalysisHealthofaFirmFinancialRatios1.Individually2.Overtime3.Incombination4.Incomparison1.Analysisofthefundsneedsofthefirm.2.Analysisofthefinancialconditionandprofitabilityofthefirm.6-11FrameworkforFinancialAnalysisExamples:VolatilityinsalesVolatilityincostsProximitytobreak-evenpoint1.Analysisofthefundsneedsofthefirm.2.Analysisofthefinancialconditionandprofitabilityofthefirm.3.Analysisofthebusinessriskofthefirm.Businessriskrelatestotheriskinherentintheoperationsofthefirm.6-12FrameworkforFinancialAnalysisAFinancialManagermustconsiderallthreejointlywhendeterminingthefinancingneedsofthefirm.Determiningthefinancingneedsofthefirm.1.Analysisofthefundsneedsofthefirm.2.Analysisofthefinancialconditionandprofitabilityofthefirm.3.Analysisofthebusinessriskofthefirm.6-13FrameworkforFinancialAnalysisNegotiationswithsuppliersofcapital.Determiningthefinancingneedsofthefirm.1.Analysisofthefundsneedsofthefirm.2.Analysisofthefinancialconditionandprofitabilityofthefirm.3.Analysisofthebusinessriskofthefirm.6-14UseofFinancialRatiosTypesofComparisonsInternalComparisonsExternalComparisonsAFinancialRatioisanindexthatrelatestwoaccountingnumbersandisobtainedbydividingonenumberbytheother.6-15ExternalComparisonsandSourcesofIndustryRatiosExamples:RobertMorrisAssociatesDun&BradstreetAlmanacofBusinessandIndustrialFinancialRatiosThisinvolvescomparingtheratiosofonefirmwiththoseofsimilarfirmsorwithindustryaverages.Similarityisimportantasoneshouldcompare“applestoapples.”6-16LiquidityRatiosCurrentCurrentAssetsCurrentLiabilitiesForBasketWondersDecember31,2003Showsafirm’sabilitytocoveritscurrentliabilitieswithitscurrentassets.BalanceSheetRatiosLiquidityRatios$1,195$500=2.396-17LiquidityRatioComparisonsBWIndustry2.392.152.262.091.912.01Year200320022001CurrentRatioRatioisstrongerthantheindustryaverage.6-18LiquidityRatiosAcid-Test(Quick)CurrentAssets-InvCurrentLiabilitiesForBasketWondersDecember31,2003Showsafirm’sabilitytomeetcurrentliabilitieswithitsmostliquidassets.BalanceSheetRatiosLiquidityRatios$1,195-$696$500=1.006-19LiquidityRatioComparisonsBWIndustry1.001.251.041.231.111.25Year200320022001Acid-TestRatioRatioisweakerthantheindustryaverage.6-20SummaryoftheLiquidityRatioComparisonsStrongcurrentratioandweakacid-testratioindicatesapotentialpr