微观经济学Financial statement analysis.pptVIP

Trend Analysis Common Size Analysis Common Size Analysis Common Size Analysis From Management Point of View S efficiency A Profitability health P growth C + L if needed Reading Assignment Chapter 19 A comprehensive reading of the whole chapter is required, together with the Bikes R US Ltd as an Illustration Make sure you can memorize all ratio formulae Chapter 19: Mastering the Summary of ratios on P. 783-784 Formulae will not be given in examination Go through Demonstration Problem 1 and 2 on P. 791 - 794 Questions 1, 11, 14, 21, 24 BE19.3, BE19.7, BE19.8, BE19.9, BE19.13 E19.3, E19.5, E19.7 P19.1, P19.3, P19.7 BYP19.2 BYP19.5, BYP19.8 Earnings Per Shares (EPS) Weighted Average Shares We would perform the same calculations for the balance sheet, and total assets would be used as the base (equal to 100 percent). The number of shares of ordinary share is weighted by the length of time the shares are outstanding throughout the year. The weighted-average number of shares outstanding is 120,250 shares. Preferred dividends are $8,000 (1,000 times $100 times 0.08). Net income less the preferred dividends divided by the weighted-average number of shares outstanding calculates basic EPS as $1.00 (rounded). To calculate basic EPS, divide the income available to ordinary shareholders by the weighted average ordinary shares outstanding. Income available to ordinary shareholders is net income minus preference share dividends. For example, Matrix, Inc. reports net income of $128,387. Matrix has 1,000 shares of $100 par value, eight percent, cumulative preference share outstanding. Ordinary share outstanding included a beginning balance January 1st, of 100,000 shares, 25,000 shares issued April 1st, a purchase of 3,000 shares of buy back September 1st, and 10,000 issued October 1st. In management, we interpret this as the efficiency of using assets to generate sal