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

Slides:



Advertisements
Similar presentations
C15- 1 Learning Objectives Power Notes 1.Basic Analytical Procedures 2.Solvency Analysis 3.Profitability Analysis 4.Summary of Analytical Measures 5.Corporate.
Advertisements

Analyzing Financial Statements
FINANCIAL STATEMENT ANALYSIS. Statement Analysis - 2 FINANCIAL STATEMENT ANALYSIS Objectives Creditors Short term liquidity Long-term solvency Investors.
12-1 Discontinued Operations  Parts of a company’s operations that are eliminated  A one-time occurrence  Income/loss from discontinued operations separately.
Analyzing Financial Statements
Financial Statement Analysis
The Analysis of Financial Statements
Copyright © 2007 Prentice-Hall. All rights reserved 1 Financial Statement Analysis Chapter 17.
Financial Analysis & Ratios
Understanding Financial Statements Seventh EDITION
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Analyzing Financial Statements Analyzing Financial Statements.
1 Copyright ©2012 Pearson Education Inc. Publishing as Prentice Hall.
Chapter 14.  To make informed decisions about a company  Generally based on comparative financial data 2Copyright (c) 2009 Prentice Hall. All rights.
Overview of Financial Analysis o SPECIFY THE OBJECTIVES OF THE ANALYSIS o Focus on who is the financial statement user o The identity of the user helps.
Financial Statement Analysis
Financial Statement Analysis
©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber Financial Statement Analysis Chapter 18.
This week its Accounting Theory
Financial Ratio Analysis
Chapter Thirteen Financial Statement Analysis Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA CHAPTER.
“How Well Am I Doing?” Financial Statement Analysis
FINANCIAL STATEMENT ANALYSIS UNIT 12 Analysing financial statements involves evaluating three characteristics of a company: 1. its liquidity 2. its profitability.
© 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.
- Brijesh Pitroda. The analysis of a Business' Health starts with Financial Statement Analysis.
Parts of a Financial Statement 1.Statement of Income 2.Balance Sheet 3.Statement of Cash Flow 4.Statement of Stockholders’ Equity.
(C) 2007 Prentice Hall, Inc.5-1 The Analysis of Financial Statements Ratios are tools and their value is limited when used alone. The more tools used,
Financial Analysis of Starbucks
CHAPTER 3 Working With Financial Statements. Key Concepts and Skills Know how to standardize financial statements for comparison purposes Know how to.
Key Financial Ratios 1. Profitability Ratios Key ratios – Return on shareholders’ equity (ROE) – Return on assets (ROA) – Return on sales (ROS) – Gross.
Using Financial Statement Information Presentations for Chapter 5 by Glenn Owen.
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 14-1.
Chapter 18-1 LO 5 Identify and compute ratios used in analyzing a firm’s liquidity, profitability, and solvency. Ratio Analysis Illustration.
Chapter 9: Financial Statement Analysis
Chapter 10: Financial Plan 1 Copyright 2005 Prentice Hall Inc. A Pearson Education Company Creating a Successful Financial Plan.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
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.
Chapter 9 Financial Statement Analysis. Learning Objectives After studying this chapter, you should be able to…  Describe basic financial statement analytical.
Different Comparisons Financial performance analysis allows us to make several comparisons Year-to-Year. – Use Horizontal Analysis vs. a Competing Company.
Previous Lecture Purpose of Analysis; Financial statement analysis helps users make better decisions Financial Statements Are Designed for Analysis Tools.
Chapter 9: Financial Plan 1 Copyright 2002 Prentice Hall Publishing Company Creating a Successful Financial Plan.
Financial Statement Analysis: The Big Picture
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Analyzing Financial Statements Chapter 14.
Chapter 14.  To make informed decisions about a company  Generally based on comparative financial data ◦ From one year to the next ◦ With a competing.
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Financial Statement Analysis K R Subramanyam John J Wild.
© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide Financial Statements Analysis and Interpretation.
12-1 ©2006 Prentice Hall, Inc ©2006 Prentice Hall, Inc. USING FIN STMT ANALYSIS TO EVALUATE FIRM PERFORMANCE  Learning objectives Learning objectives.
Analyzing Financial Statements Chapter 23.
©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 1.Calculate 13 financial ratios that measure profitability, asset utilization, liquidity.
Analyzing Financial Statements Chapter 13 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Chapter 18: Financial Statement Analysis Basics of Financial Statement Analysis Tools of AnalysisRatio Analysis.
Chapter Thirteen Financial Statement Analysis McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
1 Chapter 03 Analyzing Financial Statements McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Finance 206 Evaluating a firm’s Financial Performance.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.
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.
Copyright © 2007 Prentice-Hall. All rights reserved 1 Financial Statement Analysis Chapter 13.
Chapter 2 financial statement analysis Dr.Lubna Aboulela 1.
Chapter Nine Financial Statement Analysis © 2015 McGraw-Hill Education.
Copyright ©2012 Pearson Education Inc. Publishing as Prentice Hall. 1.
“How Well Am I Doing?” Financial Statement Analysis Chapter 17.
Book Cover Chapter Thirteen. ©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter Thirteen Financial Statement Analysis.
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 Understanding Financial Statements NINTH EDITION Lyn M. Fraser Aileen Ormiston.
Financial Statement Analysis
Financial Statement Analysis
Presentation transcript:

BAGIAN 3 The Analysis of Financial Statements

2(C) 2004 Prentice Hall, Inc. The Analysis of Financial Statements This chapter will develop tools and techniques for the interpretation of financial information

Tools and Techniques Common-size financial statements Financial ratios Trend analysis Structural analysis These include: Most important: Common sense and judgment

Common-Size Financial Statements Express each account on the balance sheet as a percentage of total assets and each account on the income statement as a percentage of net sales

Key Financial Ratios Standardize financial data in terms of mathematical relationships expressed in the form of percentages or times

Liquidity Ratios: Short-Term Solvency Measures ability to meet short-term cash needs Current Ratio

Liquidity Ratios: Short-Term Solvency Continued Measures ability to meet short-term cash needs more rigorously Quick or Acid-Test Ratio

Liquidity Ratios: Short-Term Solvency Continued Focuses on ability of the firm to generate operating cash flows as a source of liquidity Cash Flow Liquidity Ratio *Cash flow from operating activities

Liquidity Ratios: Short-Term Solvency Continued Helps gauge liquidity of accounts receivable (ability to collect cash from customers) Average Collection Period

Liquidity Ratios: Short-Term Solvency Continued Is the average number of days it takes to sell inventory to customers Days Inventory Held

Liquidity Ratios: Short-Term Solvency Continued Is the average number of days it takes to pay accounts payables in cash Days Payable Outstanding

Activity Ratios: Assets Liquidity, Asset Management Efficiency Another measure of efficiency of firm’s collection and credit policies Accounts Receivable Turnover

Activity Ratios: Assets Liquidity, Asset Management Efficiency Con’t Measures efficiency of inventory management Inventory Turnover

Activity Ratios: Assets Liquidity, Asset Management Efficiency Con’t Another measure of efficiency of inventory management Payables Turnover

Activity Ratios: Assets Liquidity, Asset Management Efficiency Con’t Assesses effectiveness in generating sales from investment in fixed assets Fixed Asset Turnover

Activity Ratios: Assets Liquidity, Asset Management Efficiency Con’t Assesses effectiveness in generating sales from investment in total assets Total Asset Turnover

Leverage Ratios: Debt Financing and Coverage Measures the extent of firm’s financing with debt Debt Ratio

Leverage Ratios: Debt Financing and Coverage Con’t. Measures the extent of firm’s financing with long- term debt Long-term Debt to Total Capitalization

Leverage Ratios: Debt Financing and Coverage Con’t Measures the extent of firm’s financing with debt Debt to Equity

Leverage Ratios: Debt Financing and Coverage Con’t Indicates how well operating earnings cover fixed interest charges Times Interest Earned

Leverage Ratios: Debt Financing and Coverage Con’t Broader measure of how well operating earnings cover fixed charges Fixed Charge Coverage

Leverage Ratios: Debt Financing and Coverage Con’t Measures firm’s ability to cover capital expenditures, long-term debt payments and dividends each year Cash Flow Adequacy

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.