FSanalysis财务分析.ppt

2 EVALUATINGFINANCIALPERFORMANCE Toolsthathelpusdeterminethefinancialhealthofacompany Wecancompareacompany sfinancialratioswithitsratiosinpreviousyears trendanalysis Wecancompareacompany sfinancialratioswithindustryorpeers Basisforratioanalysisisfinancialstatements Incomestmt B S Financialratios TypesofratiosLiquidityAssetTurnoverorefficiencyLeverageProfitability Liquidityratios Dowehaveenoughliquidassetstomeetcurrentobligations CURRENTRATIO CurrentassetsCurrentliabilitiesACIDTESTRATIO Currentassets InventoryCurrentliabilities Liquidityratios implication Highertheratio highertheliquidityQualityofcurrentassetsalsotobeconsidered deadstocks baddebtsetc ToohigharatiomightnotbeagoodsignasitrepresentsidlecurrentassetsToolowmightresultinstockoutsandlostsales 2 Turnoverratios Measurehowefficientlythefirm sassetsgenerateturnoverorsalesHighertheratioshighertheefficiency Turnoverratios ASSETTURNOVER Sales AssetsFIXEDASSETTURNOVER Sales PPE net INVENTORYTURNOVER COGS orSales InventoryRECEIVABLESTURNOVER SalesReceivables Holdingorconversionperiods Inventoryholdingperiod I InventoryCOGSperdayCollectionperiod R ReceivablesSalesperdayDays salesincash Cash securitiesSalesperdayPayablesperiod P PayablesPurchasesperday orCOGS Note Lowertheholdingperiod shortertheworkingcapitalcycle I R andlessertheworkingcapitalrequirement 3 LeverageRatios Leveragemeasurestheimpactofusingdebtcapitaltofinanceassets Firmsusedebttolever increase returnonequityReturnonequity ROE Netincome 100Shareholders equityButhigherthedebt higherthefinancialriskorinabilitytorepaythedebt HowdoesLeveragework Supposewehaveanallequity financedfirmworth 100 000 Itsearningsbeforeinterestandtax EBIT is 20000andtaxrateis30 whatisitsROE Netincome EBIT 1 taxrate 20000 1 0 3 14000ROE 14 14 000 100100 000 HowdoesLeveragework Ifthesamefirmof 100 000isfinancedwithhalfequity andhalfdebt bondsissuedat8 interest whathappenstoROEnow Interest 8 on 50 000bonds 4000Netincome EBIT Interest 1 taxrate 20000 4000 1 3 11200ROE 22 4 11200 10050000 Leverageratios DEBTRATIO DebtAssetsDEBT EQUITYRATIO DebtShareholders equityTIMESINTERESTEARNED EBITInterestexpenseTIMESBURDENCOVERED EBITInt exp Prin Paymt 1 t 4 PROFITABILITY Howgoodisthefirm sprofitability Withreferencetosales Withreferencetoassets Withreferencetofinancing Highertheratios thebetteritis PROFITABILITYRATIOS Grossmargin Grossprofit 100SalesOperatingprofitmargin EBIT 100SalesNetprofitmargin Netincome 100Sales PROFITABILITYRATIOS contd Returnonassets ROA Netincome 100AssetsReturnoninvestedcapital ROIC EBIT 1 t 100Debt ShareholdersequityReturnonequity ROE Netincome 100Shareholdersequity PROFITABILITYRATIOS contd Earningspershare NetincomeNo ofequitysharesPricetoearningsratio MarketpricepershareEarningspershareDividendyield Dividendpershare 100Marketpricepershare Leversofprofitability DuPontmodel ROE Netincome Shareholdersequity Netincome Sales AssetsSalesAssetsEquity Netprofitmargin Assetturnover Financialleverage ROA Financialleverage TABLE2 1ROEsandLeversofPerformancefor10DiverseCompanies 2007 Whichisareliablemeasure ROEisimpactedbyfinancialleverage ROE ROAxFinancialleverageROICisnotdistortedbyfinancialleverage henceitisamorereliablemeasureButtheROEbreak upallowsadrilldownanalysisoftheleversofprofitabilityandhenceusedextensivelyasameasureofperformance ROICisNotDistortedbyCompanyFinancing