Financial Analysis - Business and Management Curriculum and 课程和金融业务分析和管理.pptVIP

Financial Analysis Why do we need Financial Analysis? How profitable the firm is The trading position of the firm The firm’s solvency The way in which the firm is funded What are the important trends The Company’s Cash-Cycle Financial Ratios Different Types of Ratios Liquidity Ratios Solvency or Gearing Ratios Activity Ratios Profitability Ratios Investor Ratios Strategic Aspects of Financial Analysis Dupont Model Margin Management Asset Management Leverage Management Margin Management As the term implies managers have control of profit margins in their businesses Firms can set specific gross margins % goals and emphasize the optimisation of the differences between costs and revenues. Margin Management Asset Management Asset Management ROI and its Derivatives Leverage Management Return on Equity ROE and its Derivatives ROI-ROE Curves for two firms A B Growth Strategy and Finance Growth Strategy and Finance Growth Strategy and Finance * * We need to know … Working Capital Cycle Yearly Cash Flows Creditors CASH POOL Debtors Raw Materials Work in Progress Finished Goods Labour Costs Overheads Sales Capital Dividends Loans/Overdrafts Investment Taxation Rights Issues Interest Govt. Grants Equity Ratios Profit Loss Balance Sheet Account Income and Assets and Expenditure Liabilities (Revenues Costs) (Company Worth) The Dupont Strategic Profit Model The Dupont Model looks at the relationships between COSTS and REVENUES and the way assets are deployed and used by the firm. The Model shows how company returns are affected. The Dupont Model impl