《management企业管理类英文版PPT课件52.pptVIP

Chapter 2 Financial Statements and Analysis Learning Goals Review the contents of the stockholders’ report and the procedures for consolidating international financial statements. Understand who uses financial ratios, and how. Use ratios to analyze a firm’s liquidity and activity. Discuss the relationship between debt and financial leverage and the ratios used to analyze a firm’s debt. Learning Goals (cont.) Use ratios to analyze a firm’s profitability and market value. Use a summary of financial ratios and the DuPont system of analysis to perform a complete ratio analysis. The Four Key Financial Statements: The Income Statement The income statement provides a financial summary of a company’s operating results during a specified period. Although they are prepared annually for reporting purposes, they are generally computed monthly by management and quarterly for tax purposes. The Four Key Financial Statements The Four Key Financial Statements: The Balance Sheet The balance sheet presents a summary of a firm’s financial position at a given point in time. Assets indicate what the firm owns, equity represents the owners’ investment, and liabilities indicate what the firm has borrowed. The Four Key Financial Statements The Four Key Financial Statements (cont.) The Four Key Financial Statements: Statement of Retained Earnings The statement of retained earnings reconciles the net income earned and dividends paid during the year, with the change in retained earnings. The Four Key Financial Statements The Four Key Financial Statements: Statement of Cash Flows The statement of cash flows provides a summary of the cash flows over the period of concern, typically the year just ended. This statement not only provides insight into a company’s investment, financing and operating activities, but also ties together the income statement and previous and current balance sheets. The Four Key Financial Statements Using Financial Ratios: Interested Parties Ratio analysis involves m