Financial Statements Analysis讲义.ppt

Financial Statements Analysis Minhao Cai Major Financial statements 1. the income statement (利润表): 反映公司盈利状况 operation revenue-operation expense+other income=EBIT EBIT-Interest expense- taxes=Net income comon-size income statement: all items are expressed as a fraction of total revenue Major Financial statements Major Financial statements 2.the balance sheet ( 资产负债表): 反映公司的财务现状. Assets=Liability+shareholders equity current assets+ fixed assets+intangible fixed assets=current liability+long term debt+common stock + preferred stock+ retained earnings If all items are express as a percentage of total assets, it is called a common size balance sheet. Major Financial statements Major Financial statements 3. the statement of cash flows (现金流量表): 反映一家公司现金的增减变动情况. change in cash= cash flows from operations+ cash flows from investments+cash flow from financing Major Financial statements Major Financial statements Why the statement of cash flows so important? 1. accural basis vs cash basis 2. Judge the investment 3. the status of financing Ratio Analysis 1. Return on earnings (ROE 股本回报率) Dupont System ROE=tax burden*Interest burden*return on sales*asset turnover*leverage ratio Ratio Analysis Ratio Analysis 2. Turnover and Other Asset Utilization Ratios A. fixed asset turnover=sales/fixed assets: sales per dollar of the firms money tied up in fixed assets. B. inventory ratio=cost of goods sold/inventory:the speed with which inventory is turned over. C.accounts receivable to sales (average collection period) = average accounts receivable/sales*365: the average lag between the date of sale and the date payment is received. Ratio Analysis 3. Liquidity Ratios: evaluates the riskiness of a firm and measures the financial strength of the firm. A. current ratio（流动比率）=current assets/current liability B. quick raito （快速比率）=(cash+marketable securities+receivables)/current liability C.cash ratio （现金比率）=(cash+marketable securities)/current liability Ratio Analysis Mark