Chapter03EvaluationofFinancialPerformance2.pptVIP

NIU Huayong, International Business School, BFSU，All Rights Reserved NIU Huayong, International Business School, BFSU，All Rights Reserved Chapter 03 Evaluation of Financial Performance Ⅱ ——综合财务分析概述 Organization and Focus of Business Analysis In this chapter we’ll provide an overview and describe Business Analysis, including industry and strategy analysis, accounting analysis, and Financial analysis Business Environment and Strategy Analysis Accounting Analysis Prospective Analysis Financial Analysis Profitability Analysis Analysis of Sources Uses of Funds Risk Analysis Cost of capital Intrinsic value Business Environment Strategy Analysis Business environment strategy analysis consists of two parts—industry analysis and strategy analysis Industry analysis An industry is viewed as a collection of competitors that jockey for(谋求) bargaining power with consumers and suppliers The framework proposed by Porter (1980,1985) Strategy analysis The evaluation of both a company’s business decisions and its success at establishing a competitive advantage. The company’s expected strategic responses to its business environment Requires both economic and industry forces 注：相关内容可以参考海通证券网站：财经资讯 宏观与行业 行业分析 Accounting analysis A process of evaluating the extent to which a company’s accounting reflects economic reality This is done by studying a company’s transactions and events, assessing the effects of its accounting policies on financial statements, Limitations in accounting system Comparability problem(可比性问题)：lack of uniformity Accounting distortions(会计偏差):discretion and imprecision in accounting(判断与误差使得会计不精确) can distort financial statement information Accounting analysis Accounting distortions occur in at least three forms: Estimation error: Managerial estimates can be subject to honest errors or omissions Earnings management: Managers might use their discretion in accounting to manipulate(操纵) or window-dress（粉饰） financial statements Accounting standards can give rise