RVS Institute of Management Studies FINANCIAL REPORTING AND ANALYSIS

Slides:

Advertisements

Similar presentations

BAGIAN 3 The Analysis of Financial Statements. 2(C) 2004 Prentice Hall, Inc. The Analysis of Financial Statements This chapter will develop tools and.

Advertisements

Financial Statement Analysis

RATIOS. RECAP So far we have looked at the following: The importance of Financial Analysis How to calculate comparative values into percentages How to.

Financial Statements for a Sole Proprietorship Why It’s Important Financial statements provide the essential financial information necessary for sound.

We’ll only do balance sheet here, and will discuss statement of Cash flows in Ch.23 Chapter 5: Balance Sheet and Statement of Cash Flows Systems.

Financial Statement Analysis

Agribusiness Library LESSON L060087: CALCULATING NET WORTH.

Chapter Thirteen Financial Statement Analysis Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter Thirteen Financial Statement Analysis.

AC 239 Managerial Accounting Unit 2 Chapter 17 Financial Statement Analysis Jerry Kreuze Kaplan University.

The McGraw-Hill Companies, Inc. 2008McGraw-Hill/Irwin CHAPTER 13 Financial Statement Analysis.

Analyzing Year End Financial Reports to Evaluate the Business Objectives:  The student will describe five key factors of year end financial analysis 

Financial Statement Analysis Management Accounting: The Cornerstone for Business Decisions Copyright ©2006 by South-Western, a division of Thomson Learning.

Parts of a Financial Statement 1.Statement of Income 2.Balance Sheet 3.Statement of Cash Flow 4.Statement of Stockholders’ Equity.

Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.

Chapter 9: Financial Statement Analysis

Financial Ratios Clicker Quiz. What is this ratio? Market Price Per Share Earnings Per Share A. Inventory Turnover B. Accounts Receivable Turnover C.

Parts of a Financial Statement 1.Statement of Income 2.Balance Sheet 3.Statement of Cash Flow 4.Statement of Stockholders’ Equity.

In looking for the success of Williams- Sonoma, Inc., should you just look at the net income on the income statement? 1.Yes 2.No.

Financial Statements for a Sole Proprietorship Making Accounting Relevant Financial statements provide information to owners and managers about how the.

USING THE INFORMATION IN THE FINANCIAL STATEMENTS Financial ratios are calculated to evaluate the short-term liquidity of a company. These ratios include.

Previous Lecture Purpose of Analysis; Financial statement analysis helps users make better decisions Financial Statements Are Designed for Analysis Tools.

Financial Statement Analysis. Two Primary Statements Balance Sheet –Snapshot –BV vs MV Income Statement –Period of time.

Chart of Accounts.

Analysis of Health Farm Business Planning – Lesson 3.

Chapter Thirteen Financial Statement Analysis McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

The Balance Sheet The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company’s financial.

Section 3The Balance Sheet What You’ll Learn  The purpose of a balance sheet.  How to prepare a balance sheet.  How to analyze information on financial.

Financial Statement Analysis

CHAPTER 13 PowerPoint Author: LuAnn Bean, Ph.D., CPA, CIA, CFE Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution.

Preparing Financial Statements. 2LESSON 7-1 INCOME STATEMENT INFORMATION ON A WORK SHEET page 182.

Financial Statement Analysis Chapter 9

1 Additional Ratios (from textbook, Appendix 4B, and other sources)

17-1 Ratios can be expressed in three different ways: 1. Ratio (e.g., current ratio of 2:1) 2. % (e.g., profit margin of 2%) 3. $ (e.g., EPS of $2.25)

Chapter 15 Financial Statement Analysis. Introduction How can we determine:  The ability of an organization to pay loans?  Whether we are earning a.

Chapter Nine Financial Statement Analysis © 2015 McGraw-Hill Education.

Book Cover Chapter Thirteen. ©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter Thirteen Financial Statement Analysis.

Introduction The need for financial planning Balance sheet and income statement overview Internal and external documents Calculating costs Debt servicing.

ACC 561 Week 2 Assignment Practice Quiz 100%Correct To purchase this material click below link Assignment-Week-2-Practice-Quiz.

Tyler Mumbleau Sunday January 29, 2017

Unit 3: Financial Ratios

Pre – MBA Program Accounting Ratios Nov 11, 2012.

Financial Statement Analysis

Dr. Clive Vlieland-Boddy

The Balance Sheet The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company’s financial.

University of California, Santa Barbara

Analysis and Interpretation of Financial Statements

Fundamental Managerial Accounting Concepts

Analysis Example Financial Ratio

Chapter 12 Financial Statement Analysis

Fundamental Managerial Accounting Concepts

Financial Statement Analysis

Financial statement analysis and interpretation

Assessing Balance Sheet

END OF CHAPTER PROBLEMS

Financial Statement Analysis And The Valuation Of Common Stock

Ratio Analysis : Asif Ali DEPARTMENT OF HRM AND OB

Financial Analysis & Ratios

FINANCIAL STATEMENT ANALYSIS

Accounting and Financial Information

Ch. 3: Working with Financial Statements

إعداد القوائم المالية Preparation of Financial Statements

Measures of Liquidity and Solvency

Financial Statement Analysis And The Valuation Of Common Stock

Even More Financial Ratios

Chapter 15 Financial Statement Analysis Student Version

Electronic Presentation by Douglas Cloud Pepperdine University

Review Analyzing Financial Statements

© 2014 Cengage Learning. All Rights Reserved.

Analysis of Financial Statements Beverly Ann P. Nombrado MBA - BA.

Presentation transcript:

RVS Institute of Management Studies FINANCIAL REPORTING AND ANALYSIS Unit - 4 Session:9

CONTENTS Common Size Statements Balance Sheet Ratios Liquidity Ratios Solvency Ratios

Common Size Statements Common size balance sheet is an statement in which each account is expressed as a percentage of the value of total assets/liabilities. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.

Common Size Statements

Common Size Statements

Common Size Statements Look at the following companies. Prepare a common size income statement for them.

Balance sheet ratios Liquidity Solvency A company’s ability to meet its short-term financial commitments. Assessment focus: The company’s ability to convert assets to cash and to pay for operating needs. Solvency A company’s ability to meet its financial obligations over the longer term. Assessment focus: The company’s financial structure and its ability to pay long-term financing obligations.

Balance sheet ratios Liquidity Ratios Ratio Calculation Current Current assets ÷ Current liabilities Quick (acid test) (Cash + Marketable securities + Receivables) ÷ Current liabilities Cash (Cash + Marketable securities) ÷ Current liabilities

Balance sheet ratios Solvency Ratios Ratio Calculation Long-term debt to equity Total long-term debt  Total equity Debt to equity Total debt  Total equity Total debt (also known as debt to assets) Total debt  Total assets Debt to capital Total debt  (Total debt + Total equity) Financial leverage Total assets  Total equity

Thank You