chap01 credt analysis(财务报表分析-台湾中兴大学)chap011 credi.pptVIP

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Earning Coverage Earnings to Fixed Charges Earnings to fixed charges ratio Additional Liquidity Measures Earnings to Fixed Charges (a) Pre-tax income before discontinued operations, extraordinary items, and cumulative effects of accounting changes. (b) Interest incurred less interest capitalized. (c) Usually included in interest expense. (d) Financing leases are capitalized so the interest implicit in these is already included in interest expense. However, the interest portion of long?term operating leases is included on the assumption many long?term operating leases narrowly miss the capital lease criteria, but have many characteristics of a financing transaction. (e) Excludes all items eliminated in consolidation. The dividend amount is increased to pre?tax earnings required to pay for it. Computed as [Preferred stock dividend requirements]/[1 Income tax rate]. The income tax rate is computed as [Actual income tax provision]/[Income before income taxes, extraordinary items, and cumulative effect of accounting changes]. (f) Applies to nonutility companies. This amount is not often disclosed. (g) Minority interest in income of majority?owned subsidiaries having fixed charges can be included in income. (h) Included whether expensed or capitalized. For ease of presentation, two items (provisions) are left out of the ratio above: 1. Losses of majority?owned subsidiaries should be considered in full when computing earnings. 2. Losses on investments in less than 50?percent?owned subsidiaries accounted for by the equity method should not be included in earnings unless the company guarantees subsidiaries’ debts. Earning Coverage Earnings to Fixed Charges - Illustration Earning Coverage Tiimes Interest Earned Times interest earned ratio Earning Coverage Cash Flow to Fixed Charges C