Financial Structure Analysis: the Balance Sheet 常用的財務報表 第八章 財務結構分析—資產負債表 Financial Structure Analysis: the Balance Sheet 常用的財務報表 Balance Sheet Income Statement Cash Flow Statement

assets = liabilities + owner's equity Balance Sheet (or Net Worth Statement) p.154, Table 8.2 assets = liabilities + owner's equity primary function : to measure the financial solvency of the business (企業的償債能力) It refers to a specific date, need for physical data - valuation difficulties Trend Analysis Ratio and Comparative Analysis assets liabilities owner’s equity (net worth), or deficit if (-)

P.161, Table 8.5 Current Ratio = Current assets / Current liabilities > 1, < 2 Intermediate Ratio = (Current + intermediate assets) / (current + intermediate liabilities) Net Capital Ratio = total assets / total liabilities long-run concept Debt to Equity ratio = total liability / owner equity < 70% Equity to Value Ratio = owner equity / total assets > 40% or 50%