财务分析与证券定价(英文)chapter11.pptxVIP

Chapter 11;Links;What you will learn from this chapter;The Focus: Accounting-Based Valuation;Forecasting and the Analysis of Current Profitability;Cutting to the Core: ROCE Drivers;Due to formatting restrictions, please manually replace this page with hardcopy of slide from file: Analysis of Profitability (slide chart) [windows name]analys~1.ppt [dos name];First-Level Breakdown: Analysis of Effects of Financial Leverage (FLEV);How Financial Leverage Explains the Difference Between ROCE and RNOA;Financial Leverage:General Mills, Inc.; Microsoft Corp has been very profitable. For fiscal 1998 the firm reported an ROCE of 36.3% on average common equity of $13.702 billion. But Microsoft had no financing debt other than $980 million of convertible preferred stock. And it had considerable financial assets of $11.447 billion from cash generated from its operations. The return on average net financial assets was 8.0% (a significant portion from unrealized gains on financial assets). ? The reported ROCE masks the profitability of operations: The RNOA of 179.4% is weighted down by return on financing activities in the overall ROCE. ? A What-If Question: Microsoft has regular stock repurchases. In fiscal 1998 the company used $2.796 billion of its financial assets to repurchase stock. What would the ROCE have been had it not undertaken the stock repurchase? ? The answer: ? With $2.796 billion more in average financial assets and common equity, the NFA to CSE ratio would have been 0.863 rather than 0.835, and the ROCE would have been: ? 31.5% = 179.4% ? [0.863 x (179.4% ? 8.0%)] ? Stock repurchases (and dividends) increase ROCE. ? ;The Effects of Operating Liability Leverage (OLLEV);Operating Liability Leverage: General Mills, Inc.;Return on Net Operating Assets and Return on Assets;RNOA and ROA for Selected Firms, 1996;FLEV and Debt-to-Equity Ratios;Reformulated Financial Statements: Nike, Inc.;Nike, Inc.;Nike, Inc.;Reformulated Finan