会计学清华大学已有财务状况分析学生大软件站课件.ppt

1、?The McGraw-Hill Companies,Inc.,1999Slide 14-1Irwin/McGraw-HillChapter 14Financial Statement Analysis?The McGraw-Hill Companies,Inc.,1999Slide 14-2Irwin/McGraw-HillPurpose of AnalysisInternal UsersExternal UsersFinancial statement analysis helps users make better decisions.ManagersOfficersInternal A

2、uditorsShareholdersLendersCustomers?The McGraw-Hill Companies,Inc.,1999Slide 14-3Irwin/McGraw-HillPurpose of AnalysisGrowthin salesReturn tostockholdersProfitmarginsReturn onequityDetermined byanalyzing thefinancialstatements.Financial measures are often usedto rank corporate performance.Example mea

3、sures include:?The McGraw-Hill Companies,Inc.,1999Slide 14-4Irwin/McGraw-HillFinancial Statements are Designed for AnalysisResultsin standardized,meaningfulsubtotals.Items with certaincharacteristics aregrouped together.ClassifiedFinancialStatementsHelps identifysignificantchanges andtrends.Amounts

4、fromseveral yearsappear side by side.ComparativeFinancialStatementsPresented as ifthe two companiesare a singlebusiness unit.Information for theparent and subsidiaryare presented.ConsolidatedFinancialStatements?The McGraw-Hill Companies,Inc.,1999Slide 14-5Irwin/McGraw-HillTools of AnalysisLiquidity

5、and EfficiencySolvencyProfitabilityMarketAbility to meet short-term obligations and to efficiently generate revenuesAbility to generate future revenues and meet long-term obligationsAbility to generate positive market expectationsAbility to provide financial rewards sufficient to attract and retain

6、financing?The McGraw-Hill Companies,Inc.,1999Slide 14-6Irwin/McGraw-HillDollar Change:Analysis Period AmountBase PeriodAmountDollarChange=Dollar and Percentage ChangesPercentage Change:Dollar ChangeBase PeriodAmountPercentChange=?The McGraw-Hill Companies,Inc.,1999Slide 14-7Irwin/McGraw-HillDollar a

7、nd Percentage ChangesSales and earningsshould increase atmore that the rateof inflation.In measuring quarterlychanges,compare tothe same quarter inthe previous year.Percentages may bemisleading when thebase amount is small.Evaluating Percentage Changesin Sales and Earnings?The McGraw-Hill Companies,

8、Inc.,1999Slide 14-8Irwin/McGraw-Hill Let s look at the asset section of Clover Corporation s comparative balance sheet and income statement for 2001 and 2000.Compute the dollar change and the percentage for cash.Dollar and Percentage ChangesExample?The McGraw-Hill Companies,Inc.,1999Slide 14-9Irwin/

9、McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,20012000Dollar ChangePercent Change*AssetsCurrent assets:Cash and equivalents12,000$23,500$Accounts receivable,net60,000 40,000 Inventory80,000 100,000 Prepaid expenses3,000 1,200 Total current assets155,000$164,700$Property and equi

10、pment:Land40,000 40,000 Buildings and equipment,net120,000 85,000 Total property and equipment160,000$125,000$Total assets315,000$289,700$*Percent rounded to one decimal point.?The McGraw-Hill Companies,Inc.,1999Slide 14-10Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,2001

11、2000Dollar ChangePercent Change*AssetsCurrent assets:Cash and equivalents12,000$23,500$(11,500)$Accounts receivable,net60,000 40,000 Inventory80,000 100,000 Prepaid expenses3,000 1,200 Total current assets155,000$164,700$Property and equipment:Land40,000 40,000 Buildings and equipment,net120,000 85,

12、000 Total property and equipment160,000$125,000$Total assets315,000$289,700$*Percent rounded to one decimal point.$12,000?$23,500=$(11,500)?The McGraw-Hill Companies,Inc.,1999Slide 14-11Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,20012000Dollar ChangePercent Change*Asset

13、sCurrent assets:Cash and equivalents12,000$23,500$(11,500)$-48.9%Accounts receivable,net60,000 40,000 Inventory80,000 100,000 Prepaid expenses3,000 1,200 Total current assets155,000$164,700$Property and equipment:Land40,000 40,000 Buildings and equipment,net120,000 85,000 Total property and equipmen

14、t160,000$125,000$Total assets315,000$289,700$*Percent rounded to one decimal point.($11,500?$23,500)?100%=48.94%Complete the analysis for the other assets.?The McGraw-Hill Companies,Inc.,1999Slide 14-12Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,20012000Dollar ChangePerc

15、ent Change*AssetsCurrent assets:Cash and equivalents12,000$23,500$(11,500)$-48.9%Accounts receivable,net60,000 40,000 20,000 50.0%Inventory80,000 100,000 (20,000)-20.0%Prepaid expenses3,000 1,200 1,800 150.0%Total current assets155,000$164,700$(9,700)-5.9%Property and equipment:Land40,000 40,000 -0.

16、0%Buildings and equipment,net120,000 85,000 35,000 41.2%Total property and equipment160,000$125,000$35,000 28.0%Total assets315,000$289,700$25,300$8.7%*Percent rounded to one decimal point.?The McGraw-Hill Companies,Inc.,1999Slide 14-13Irwin/McGraw-HillTrend AnalysisTrend analysis is used to reveal

17、patterns in data covering successive periods.TrendPercent Analysis Period Amount Base Period Amount100%=?The McGraw-Hill Companies,Inc.,1999Slide 14-14Irwin/McGraw-HillTrend AnalysisExample1997 is the base period so its amounts will equal 100%.Berry ProductsIncome InformationFor the Years Ended Dece

18、mber 31,?The McGraw-Hill Companies,Inc.,1999Slide 14-15Irwin/McGraw-HillTrend AnalysisExample(290,000 275,000)100%=105%(198,000 190,000)100%=104%(92,000 85,000)100%=108%Berry ProductsIncome InformationFor the Years Ended December 31,?The McGraw-Hill Companies,Inc.,1999Slide 14-16Irwin/McGraw-HillTre

19、nd AnalysisExampleBerry ProductsIncome InformationFor the Years Ended December 31,?The McGraw-Hill Companies,Inc.,1999Slide 14-17Irwin/McGraw-HillComponent PercentagesExamine the relative size of each item in the financial statements by computing component(or common-sized)percentages.Component Perce

20、nt100%Analysis AmountBase Amount=Financial StatementBase AmountBalance SheetTotal AssetsIncome StatementRevenues?The McGraw-Hill Companies,Inc.,1999Slide 14-18Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,Common-size Percents*2001200020012000AssetsCurrent assets:Cash and e

21、quivalents12,000$23,500$3.8%8.1%Accounts receivable,net60,000 40,000 Inventory80,000 100,000 Prepaid expenses3,000 1,200 Total current assets155,000$164,700$Property and equipment:Land40,000 40,000 Buildings and equipment,net120,000 85,000 Total property and equipment160,000$125,000$Total assets315,

22、000$289,700$100.0%100.0%*Percent rounded to first decimal point.Complete the common-size analysis for the other assets.($12,000?$315,000)?100%=3.8%($23,500?$289,700)?100%=8.1%?The McGraw-Hill Companies,Inc.,1999Slide 14-19Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,Commo

23、n-size Percents*2001200020012000AssetsCurrent assets:Cash and equivalents12,000$23,500$3.8%8.1%Accounts receivable,net60,000 40,000 19.0%13.8%Inventory80,000 100,000 25.4%34.5%Prepaid expenses3,000 1,200 1.0%0.4%Total current assets155,000$164,700$49.2%56.9%Property and equipment:Land40,000 40,000 1

24、2.7%13.8%Buildings and equipment,net120,000 85,000 38.1%29.3%Total property and equipment160,000$125,000$50.8%43.1%Total assets315,000$289,700$100.0%100.0%*Percent rounded to first decimal point.?The McGraw-Hill Companies,Inc.,1999Slide 14-20Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance She

25、etsDecember 31,Common-size Percents*2001200020012000Liabilities and Shareholders EquityCurrent liabilities:Accounts payable67,000$44,000$Notes payable3,000 6,000 Total current liabilities70,000$50,000$Long-term liabilities:Bonds payable,8%75,000 80,000 Total liabilities145,000$130,000$Shareholders e

26、quity:Preferred stock20,000 20,000 Common stock60,000 60,000 Additional paid-in capital10,000 10,000 Total paid-in capital90,000$90,000$Retained earnings80,000 69,700 Total shareholders equity170,000$159,700$Total liabilities and shareholders equity315,000$289,700$*Percent rounded to first decimal p

27、oint.Complete the common-size analysis for the liabilities and equity accounts.?The McGraw-Hill Companies,Inc.,1999Slide 14-21Irwin/McGraw-HillCLOVER CORPORATIONComparative Balance SheetsDecember 31,Common-size Percents*2001200020012000Liabilities and Shareholders EquityCurrent liabilities:Accounts

28、payable67,000$44,000$21.3%15.2%Notes payable3,000 6,000 1.0%2.1%Total current liabilities70,000$50,000$22.2%17.3%Long-term liabilities:Bonds payable,8%75,000 80,000 23.8%27.6%Total liabilities145,000$130,000$46.0%44.9%Shareholders equity:Preferred stock20,000 20,000 6.3%6.9%Common stock60,000 60,000

29、 19.0%20.7%Additional paid-in capital10,000 10,000 3.2%3.5%Total paid-in capital90,000$90,000$28.6%31.1%Retained earnings80,000 69,700 25.4%24.1%Total shareholders equity170,000$159,700$54.0%55.1%Total liabilities and shareholders equity315,000$289,700$100.0%100.0%*Percent rounded to first decimal p

30、oint.?The McGraw-Hill Companies,Inc.,1999Slide 14-22Irwin/McGraw-HillCLOVER CORPORATIONComparative Income StatementsFor the Years Ended December 31,Common-size Percents*2001200020012000Revenues520,000$480,000$Costs and expenses:Cost of sales360,000 315,000 Selling and admin.128,600 126,000 Interest

31、expense6,400 7,000 Income before taxes25,000$32,000$Income taxes(30%)7,500 9,600 Net income17,500$22,400$Net income per share0.79$1.01$Avg.#common shares22,200 22,200 *Rounded to first decimal point.Compute the common-size percentages for revenues and expenses.?The McGraw-Hill Companies,Inc.,1999Sli

32、de 14-23Irwin/McGraw-HillCLOVER CORPORATIONComparative Income StatementsFor the Years Ended December 31,Common-size Percents*2001200020012000Revenues520,000$480,000$100.0%100.0%Costs and expenses:Cost of sales360,000 315,000 69.2%65.6%Selling and admin.128,600 126,000 24.7%26.3%Interest expense6,400

33、 7,000 1.2%1.5%Income before taxes25,000$32,000$4.8%6.7%Income taxes(30%)7,500 9,600 1.4%2.0%Net income17,500$22,400$3.4%4.7%Net income per share0.79$1.01$Avg.#common shares22,200 22,200 *Rounded to first decimal point.?The McGraw-Hill Companies,Inc.,1999Slide 14-24Irwin/McGraw-HillCommon-Size Graph

34、icsExamplePercent0%20%40%60%80%100%PercentBuildings&equip.,netLandPrepaid expensesInventoryAccounts receivable,netCash and equivalentsThis is a graphical analysis of Clover Corporation抯抯 common-size assets for 2001.?The McGraw-Hill Companies,Inc.,1999Slide 14-25Irwin/McGraw-HillRatiosPast performanc

35、e topresent performance.Other companies toyour company.Along with dollar and percentage changes,trend percentages,and component percentages,ratios can be used to compare:A ratio is a simple mathematical expressionof the relationship between one item and another.?The McGraw-Hill Companies,Inc.,1999Sl

36、ide 14-26Irwin/McGraw-Hill Use this information to calculate the liquidity ratios for Norton Corporation.?The McGraw-Hill Companies,Inc.,1999Slide 14-27Irwin/McGraw-HillWorking Capitalis the excess of current assets over current liabilities.?The McGraw-Hill Companies,Inc.,1999Slide 14-28Irwin/McGraw

37、-HillCurrent RatioCurrentRatio Current Assets Current Liabilities=CurrentRatio$65,000$42,000=1.55:1This ratio measures the short-term debt-paying ability of the company.?The McGraw-Hill Companies,Inc.,1999Slide 14-29Irwin/McGraw-HillQuick RatioQuick assets are cash,marketable securities,and receivab

38、les.This ratio is like the currentratio but excludes current assets such as inventories that may be difficult to quickly convert into cash.Quick Assets Current Liabilities=QuickRatio?The McGraw-Hill Companies,Inc.,1999Slide 14-30Irwin/McGraw-Hill Quick Assets Current Liabilities=QuickRatio$50,000$42

39、,000=1.19:1=QuickRatioQuick RatioThis ratio is like the currentratio but excludes current assets such as inventories that may be difficult to quickly convert into cash.?The McGraw-Hill Companies,Inc.,1999Slide 14-31Irwin/McGraw-HillDebt RatioThe smaller the percentage of assets that are financed by

40、debt,the smaller the risk for creditors.?The McGraw-Hill Companies,Inc.,1999Slide 14-32Irwin/McGraw-HillDebt RatioThe smaller the percentage of assets that are financed by debt,the smaller the risk for creditors.?The McGraw-Hill Companies,Inc.,1999Slide 14-33Irwin/McGraw-HillUsefulness and Limitatio

41、ns of Financial RatiosRatios help usersunderstandfinancial relationships.Ratios provide forquick comparisonof companies.UsesManagement may enterinto transactions merelyto improve the ratios.Ratios do not help withanalysis of the companysprogress towardnonfinancial goals.Limitations?The McGraw-Hill C

42、ompanies,Inc.,1999Slide 14-34Irwin/McGraw-HillProfitabilityAn income statement can be prepared in either a multiple-step or single-step format.The single-step format is simpler.The multiple-step format provides more detailed information.?The McGraw-Hill Companies,Inc.,1999Slide 14-35Irwin/McGraw-Hil

43、lProper HeadingGross MarginOperating ExpensesNon-operating ItemsIncome Statement(Multiple-Step)ExampleRemember to compute EPS.?The McGraw-Hill Companies,Inc.,1999Slide 14-36Irwin/McGraw-HillProper HeadingIncome Statement(Single-Step)ExampleExpenses&LossesRevenues&GainsRemember to compute EPS.?The Mc

44、Graw-Hill Companies,Inc.,1999Slide 14-37Irwin/McGraw-Hill Use this information to calculate the profitability ratios for Norton Corporation.?The McGraw-Hill Companies,Inc.,1999Slide 14-38Irwin/McGraw-HillReturn On Investment(ROI)Used by investors to evaluate the efficiency with which financial resou

45、rces are employed.?The McGraw-Hill Companies,Inc.,1999Slide 14-39Irwin/McGraw-HillReturn On Assets(ROA)This ratio is generally consideredthe best overall measure of acompany抯抯 profitability.?The McGraw-Hill Companies,Inc.,1999Slide 14-40Irwin/McGraw-HillReturn On Equity(ROE)This measure indicates ho

46、w well the company employed the owners?investments to earn income.?The McGraw-Hill Companies,Inc.,1999Slide 14-41Irwin/McGraw-HillSources of Financial InformationCan beaudited orunaudited.Annual andquarterlyfinancialreports.Reports filedwith the SEC bypublicly ownedcompanies.Internet andother freesources.Detailedanalyses byfinancialanalysts.?The McGraw-Hill Companies,Inc.,1999Slide 14-42Irwin/McGraw-HillNo more ratios,please!