12. Financial analysis B 12 / 1 BUSINESS ECONOMICS 5 / 6

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Presentation transcript:

12. Financial analysis B 12 / 1 BUSINESS ECONOMICS 5 / 6 Copyright Mark Van Couwenberghe, 2017-2018

B 12 / 2 12.0 OVERVIEW 12.1 FINANCIAL ANALYSIS: WHAT + WHY? page B 12 / 3 12.2 BALANCE SHEET page B 12 / 4 12.3 INCOME STATEMENT page B 12 / 6 12.4 LIQUIDITY page B 12 / 12.5 SOLVENCY page B 12 / 12.6 PROFITABILITY page B 12 / 12.7 OPERATING CYCLE page B 12 / 12.8 EXERCISES page B 12 / 12.9 VOCABULARY page B 12 / Copyright Mark Van Couwenberghe, 2017-2018

12.1 FINANCIAL ANALYSIS: WHAT + WHY? B 12 / 3 12.1 FINANCIAL ANALYSIS: WHAT + WHY? Financial analysis consists of an analysis of the company’s financial statements (balance sheet + income statement; see later) to evaluate the financial performance of the company It is a very important source of information for various stakeholders Explain why: Management: Shareholders: Creditors: Competitors: Customers: Employees: Government … Copyright Mark Van Couwenberghe, 2017-2018

12.2 BALANCE SHEET ASSETS = LIABILITIES B 12 / 4 A balance sheet displays the sources and use of the company’s resources at a given point in time. ASSETS LIABILITIES 1 IMMATERIAL FIXED ASSETS 8 SHARE CAPITAL 2 MATERIAL FIXED ASSETS 9 RESERVES 3 FINANCIAL FIXED ASSETS 10 RETAINED EARNINGS 4 RECEIVABLES > 1Y EQUITY FIXED ASSETS 11 PROVISIONS 5 STOCKS 12 PAYABLES > 1Y 6 RECEIVABLES < 1Y LT DEBT 7 LIQUID ASSETS 13 PAYABLES < 1Y CURRENT ASSETS ST DEBT TOTAL ASSETS = LIABILITIES Copyright Mark Van Couwenberghe, 2017-2018

B 12 / 5 EXPLANATION 1 2 3 4 5 6 7 8 9 10 11 12 13 Copyright Mark Van Couwenberghe, 2017-2018

B 12 / 6 12.3 INCOME STATEMENT An income statement displays the costs and revenue of the company over a certain periode of time and enables to define the result (profit or loss) COSTS REVENUE 1 RAW MATERIALS 7 TURNOVER 2 SERVICES 3 STAFF 4 DEPRECIATION OPERATIONAL COSTS OPERATIONAL REVENUE 5 INTERESTS 8 FINANCIAL COSTS FINANCIAL REVENUE 6 EXCEPTIONAL COSTS 9 EXCEPTIONAL REVENUE TOTAL Copyright Mark Van Couwenberghe, 2017-2018

B 12 / 7 RESULT RESULT BEFORE TAXES TAXES EXPLANATION NET RESULT 1 2 3 4 5 6 7 8 9 Copyright Mark Van Couwenberghe, 2017-2018

CURRENT ASSETS - STOCKS ___________________________ B 13 / 8 12.4 LIQUIDITY Liquidity means if a company is capable to pay the ST debt Especially interesting information for suppliers: will the company pay its invoices on time? NET WORKING CAPITAL = CURRENT ASSETS - ST DEBT CURRENT RATIO = CURRENT ASSETS __________________ ST DEBT ACID RATIO = CURRENT ASSETS - STOCKS ___________________________ ST DEBT Copyright Mark Van Couwenberghe, 2017-2018

13.5 EXERCISES B 13 / 15 Visit the website of the Kinepolis Group http://corporate.kinepolis.com/en and gather informaton that allows you to set-up a BSC for the company Perspective Critical success factor (2 per perspective) Performance indicator (2 per perspective) 1 1.1 1.2 2 2.1 2.2 Copyright Mark Van Couwenberghe, 2017-2018

B 13 / 16 Perspective Critical success factor (2 per perspective) Performance indicator (2 per perspective) 3 3.1 3.2 4 4.1 4.2 5 5.1 5.2 Copyright Mark Van Couwenberghe, 2017-2018

B 13 / 17 13.6 VOCABULARY EN NL Copyright Mark Van Couwenberghe, 2017-2018

B 13 / 18 EN NL Copyright Mark Van Couwenberghe, 2017-2018

B 13 / 19 EN NL Copyright Mark Van Couwenberghe, 2017-2018