Financial Analysis and Planning Principles of Corporate Finance Brealey and Myers Sixth Edition Slides by Matthew Will Chapter 28 © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Topics Covered Executive Paper Corporation Financial Ratios The DuPont System Financial Planning Growth and External Financing
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Executive Paper
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Executive Paper
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Executive Paper
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Executive Paper
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Executive Paper
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Leverage Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Leverage Ratios Total debt ratio= total liabilities total assets Times interest earned= EBIT interest payments Cash coverage ratio= EBIT+depreciation interest payments
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Liquidity Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Liquidity Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Efficiency Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Efficiency Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Profitability Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Profitability Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Market Value Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill Market Value Ratios
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill The DuPont System A breakdown of ROE and ROA into component ratios:
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill The DuPont System
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill The DuPont System asset turnover profit margin
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill The DuPont System
© The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill The DuPont System leverage ratio asset turnover profit margin debt burden