Chapter4Foundationsofratioandfinancialanalysis

Chapter4FoundationsofRatioandFinancialAnalysisINTRODUCTION1.Purposeanduseofratioanalysisfirmsofdifferentsized（不同规模的公司）aprofileofafirm（characteristics）Fourbroadratiocategories:(1)Activityanalysis（营运能力）(2)Liquidityanalysis（流动性/短期偿债能力）(3)Long-termdebtandsolvencyanalysis（长期偿债能力）(4)Profitabilityanalysis（盈利能力）2.Ratioanalysis:cautionarynotes(1)EconomicassumptionsProportionality（比例）assumptionfixedcosts(2)BenchmarksOptimallevels（最优水平）Industry（行业）normsasbenchmarks.(3)Timingandwindowdressingonlyatspecificpointsintimeseasonalbusinesswindowdressing（弄虚作假）ReviewWhatarethefourbroadratiocategories?Whatarethecautionarynotesforratioanalysis?IncomeEquityROECompanyA$10,000$100,00010%CompanyB(10,000)(100,000)10%(4)Negativenumbers（负数）DividendIncomePayoutRatioCompanyA$10,000$50,00020%CompanyB10,00030,00033%CompanyC10,000(50,000)(20%)(5)AccountingmethodsGivesomeexamplesaboutdifferentaccountingmethodsusedbythecompany.COMMON-SIZESTATEMENTS（共同比报表）asapercentageofarelevantbase.Balancesheet==TotalassetsIncomestatement==Sales1.Cross-sectional（代表性）comparisons(Exhibit4-1)P101Illustration:3pharmaceutical（制药）companiesfromdifferentcountries.2.Industry（行业）comparisons(Exhibit4-2)P102Illustration:8industries3.Comparisonsovertime(Exhibit4-3)P104Illustration:5yearsof1company1.Activityanalysis（营运分析）thefirm’slevelofoperation==theassetsneededtosustainoperatingactivities.(1)Short-term（短期）activityratios①Inventoryturnoverratio（存货周转率）Inventoryturnover=GOGS/averageinventoryAverageNo.daysinventoryinstock（存货周转天数）=365/inventoryturnoverDISCUSSIONOFRATIOSBYCATEGORYReceivablesturnover=sales/averagetradereceivablesAverageNo.daysreceivablesoutstanding（应收账款周转天数）=365/receivablesturnover②Receivablesturnoverratio（应收账款周转率）③Accountspayableturnoverratio（应付账款周转率）Payablesturnover=purchases/averageaccountspayable*purchases=COGS+(Endinginventory-Beginninginventory)AverageNO.Dayspayableoutstanding（应付账款周转天数）=365/payablesturnover④workingcapitalturnoverratio（营运资本周转率）Workingcapitalturnover=sales/averageworkingcapital*workingcapital（营运资本）=currentassets-currentliabilities20082009IncomestatementfortheYearEndingDec.31,2009Cash$30$46Accountsreceivable545599Inventory405458Currentassets$980$1,103Sales$1,861Property,plant,andequipment204237Costofgoodssold1,277Less:accumulateddepreciation(73)(87)Totalassets$1,111$1,253Operatingexpense504Accountspayable$113$104Taxespayable130133Depreciation14Short-termdebt391453Interest51Currentliabilities$634$690Taxes6Long-termdebt143239Netincome$9Totalliabilities$777$929Commonstock7376Retainedearnings261248Totalequity$334$324Totalliabilitiesandequity$1,111$1.253InventoryTurnover=1277/431.5=2.96AverageNo.DaysInventoryInStock=365/2.96=123.31ReceivablesTurnover=1861/572=3.25AverageNo.DaysReceivablesOutstanding=365/3.25=112.31PayablesTurnover=(1277+53)/108.5=12.26AverageNo.DaysPayablesOutstanding=365/12.26=29.77WorkingCapitalTurnover=1861/(346+413)/2=4.90(2)Long-termactivityratios（长期营运能力）①Fixedassetturnoverratio（固定资产周转率）Fixedassetsturnover=sales/averagefixedassets②Totalassetturnover（总资产周转率）Totalassetturnover=sales/averagetotalassets20082009IncomestatementfortheYearEndingDec.31,2009Cash$30$46Accountsreceivable545599Inventory405458Currentassets$980$1,103Sales$1,861Property,plant,andequipment204237Costofgoodssold1,277Less:accumulateddepreciation(73)(87)Totalassets$1,111$1,253Operatingexpense504Accountspayable$113$104Taxespayable130133Depreciation14Short-termdebt391453Interest51Currentliabilities$634$690Taxes6Long-termdebt143239Netincome$9Totalliabilities$777$929Commonstock7376Retainedearnings261248Totalequity$334$324Totalliabilitiesandequity$1,111$1.253FixedAssetsTurnover=1861/(131+150)/2=13.25TotalAssetTurnover=1861/(1111+1253)/2=1.572.Liquidityanalysis（流动性分析）(1)Lengthofcashcycle（现金循环周期）Operatingcycle（经营周期）=Inventory+ReceivablesCashcycle（现金周期）=Inventory+Receivables–PayablesAverageNo.DaysInventoryInStock=365/2.96=123.31AverageNo.DaysReceivablesOutstanding=365/3.25=112.31AverageNo.DaysPayablesOutstanding=365/12.26=29.77OperatingCycle=123.31+112.31=235.62CashCycle=235.62-12.26=223.36*negativecashcyclesCashCycleforDellComputers199819992000Daysofsalesinaccountsreceivable363634Daysofsupplyininventory766Daysinaccountspayable(51)(54)(58)Cashcycle(8)(12)(18)Review1.Whataretheshort-termactivityratiosmentionedlasttime?2.Whycanthecompanyhavethenegativecashcycle?(2)Workingcapitalratios（营运资本比率）anddefensiveintervals（速动资产够用天数）①Currentratio（流动比率）=currentassets/currentliabilities②Quickratio（速动比率）=(cash+marketablesecurities+accountsreceivable)/currentliabilities③Cashratio（现金比率）=(cash+marketablesecurities)/currentliabilities④cashflowfromoperationsratio=cashflowfromoperations/currentliabilities⑤Defensiveinterval（速动资产够用天数）(⑥Cashburnratio)=365×(cash+marketablesecurities+accountsreceivable)/(projectedexpenditures)20082009IncomestatementfortheYearEndingDec.31,2009Cash$30$46Accountsreceivable545599Inventory405458Currentassets$980$1,103Sales$1,861Property,plant,andequipment204237Costofgoodssold1,277Less:accumulateddepreciation(73)(87