10AnalysisofFinancialStatements(投资分析与投

LecturePresentationSoftwaretoaccompanyInvestmentAnalysisandPortfolioManagementSeventhEditionbyFrankK.Reilly&KeithC.BrownChapter10Chapter10AnalysisofFinancialStatementsQuestionstobeanswered:•Whatarethemajorfinancialstatementsprovidedbyfirmsandwhatspecificinformationdoeseachofthemcontain?•Whydoweusefinancialratiostoexaminetheperformanceofafirmandwhyisitimportanttoexamineperformancerelativetotheeconomyandafirm’sindustry?Chapter10AnalysisofFinancialStatements•Whatarethemajorcategoriesforfinancialratiosandwhatquestionsareansweredbytheratiosinthesecategories?•Whatspecificratioshelpdetermineafirm’sinternalliquidity,operatingperformance,riskprofile,growthpotential,andexternalliquidity?•HowcantheDuPontanalysishelpevaluateafirm’sreturnonequityovertime?Chapter10AnalysisofFinancialStatements•WhataresomeofthemajordifferencesbetweenU.S.andnon-U.S.financialstatementsandhowdothesedifferencesaffectthefinancialratios?•Whatisa“quality”balancesheetorincomestatement?•Whyisfinancialstatementanalysisdoneifmarketsareefficientandforward-looking?Chapter10AnalysisofFinancialStatements•Whatmajorfinancialratioshelpanalystsinthefollowingareas:stockvaluation,estimatingandevaluatingsystematicrisk,predictingthecreditratingsonbonds,andpredictingbankruptcy?MajorFinancialStatements•CorporateshareholderannualandquarterlyreportsmustincludeMajorFinancialStatements•Corporateshareholderannualandquarterlyreportsmustinclude–BalancesheetMajorFinancialStatements•Corporateshareholderannualandquarterlyreportsmustinclude–Balancesheet–IncomestatementMajorFinancialStatements•Corporateshareholderannualandquarterlyreportsmustinclude–Balancesheet–Incomestatement–StatementofcashflowsMajorFinancialStatements•Corporateshareholderannualandquarterlyreportsmustinclude–Balancesheet–Incomestatement–Statementofcashflows•ReportsfiledwithSecuritiesandExchangeCommission(SEC)MajorFinancialStatements•Corporateshareholderannualandquarterlyreportsmustinclude–Balancesheet–Incomestatement–Statementofcashflows•ReportsfiledwithSecuritiesandExchangeCommission(SEC)–10-Kand10-QGenerallyAcceptedAccountingPrinciples(GAAP)•FormulatedbytheFinancialAccountingStandardsBoard(FASB)•Providessomechoicesofaccountingprinciples•FinancialstatementsfootnotesmustdisclosewhichaccountingprinciplesareusedbythefirmBalanceSheet•Showsresources(assets)ofthefirmandhowithasfinancedtheseresources•Indicatescurrentandfixedassetsavailableatapointintime•Financingisindicatedbyitsmixtureofcurrentliabilities,long-termliabilities,andowners’equityIncomeStatement•Containsinformationontheprofitabilityofthefirmduringsomeperiodoftime•Indicatestheflowofsales,expenses,andearningsduringthetimeperiodStatementofCashFlows•Integratestheinformationonthebalancesheetandincomestatement•Showstheeffectsonthefirm’scashflowofincomeflowsandchangesinvariousitemsonthebalancesheetStatementofCashFlowsIthasthreesections:CashFlowfromOperatingActivities–thesourcesandusesofcashthatarisefromthenormaloperationsofafirmCashFlowfromInvestingactivities–changeingrossplantandequipmentplusthechangeintheinvestmentaccountCashFlowfromFinancingactivities–financingsourcesminusfinancingusesAlternativeMeasuresofCashFlow•Cashflowfromoperations–Traditionalcashflowequalsnetincomeplusdepreciationexpenseanddeferredtaxes–Alsoadjustforchangesinoperatingassetsandliabilitiesthatuseorprovidecash•Freecashflowrecognizesthatsomeinvestingandfinancingactivitiesarecriticaltoongoingsuccessofthefirm–CapitalexpendituresanddividendsPurposeofFinancialStatementAnalysis•Evaluatemanagementperformanceinthreeareas:–Profitability–Efficiency–RiskAnalysisofFinancialRatios•Ratiosaremoreinformativethatrawnumbers•RatiosprovidemeaningfulrelationshipsbetweenindividualvaluesinthefinancialstatementsImportanceofRelativeFinancialRatios•Comparetootherentities•Examineafirm’sperformancerelativeto:–Theaggregateeconomy–Itsindustryorindustries–Itsmajorcompetitorswithintheindustry–Itspastperformance(time-seriesanalysis)ComparingtoTheAggregateEconomy•Mostfirmsareinfluencedbyeconomicexpansionsandcontractionsinthebusinesscycle•AnalysishelpsyouestimatethefutureperformanceofthefirmduringsubsequentbusinesscyclesComparingtoAFirm’sIndustry•Mostpopularcomparison•Industriesaffectthefirmswithinthemdifferently,buttherelationshipisalwayssignificant•Theindustryeffectisstrongestforindustrieswithhomogenousproducts•Examinetheindustry’sperformancerelativetoaggregateeconomicactivityComparingtoAFirm’sMajorCompetitors•Industryaveragesmaynotberepresentative•Selectasubsetofcompetitorstocomparetousingcross-sectionalanalysis,or•ConstructacompositeindustryaveragefromindustriesthefirmoperatesinComparingtoAFirm’sHistoricalPerformance•Determinewhetheritisprogressingordeclining•Helpfulforestimatingfutureperformance•ConsidertrendsaswellasaveragesovertimeFiveCategoriesofFinancialRatios1.Internalliquidity(solvency)2.Operatingperformance–a.Operatingefficiency–b.Operatingprofitability3.Riskanalysis–a.Businessrisk–b.FinancialriskSixCategoriesofFinancialRatios4.GrowthanalysisSixCategoriesofFinancialRatios5.Externalliquidity(marketabilit