ACCOUNTING FINANCIAL REPORT ANALYSIS. THE AIM: After conducting the financial report, the company should know how well and how effective, efficient company’s.

Slides:

Advertisements

Similar presentations

Th 9 ©The McGraw-Hill Companies, Inc Foundations of Financial Management E D I T I O N N I N T H Irwin/McGraw-Hill Block Hirt MANAJEMEN KEUANGAN.

Advertisements

Calculations Lindsay Rodrigue Accounting 30 Ms. Lozinski May 29, 2001.

GET RICH QUICK CO. Financial Statement Ratio Analysis: Profitability Long-Term Financial Position Short-Term Financial Position.

Accounting Mechanics Using Financial Statements to Assess Performance.

Chapter 4. We will want to answer questions about the firm’s n Liquidity n Efficient use of Assets n Leverage (financing) n Profitability.

Basics of Financial Management 3rd edition Bacon et. al Copley Publishing Group CHAPTER THREE 3-1 ©2005 All rights reservedSlides by Hassan Moussawi,

Finance/Accounting Functional Review. The Finance/Accounting Functions Defined Investment Decision The Allocation and Reallocation of Capital and Resources.

Working with Financial Statements

© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Analyzing Financial Statements Analyzing Financial Statements.

Chapter 14.  To make informed decisions about a company  Generally based on comparative financial data 2Copyright (c) 2009 Prentice Hall. All rights.

RATIOS ANALYSISOF BATA SHOE COMPANY. Quick Ratio  Quick ratio of Bata Shoe Company shows the taka available for covering each of taka current asset.

Highlights of the Ready Mixed Concrete Industry Data Report Presented to the 45 th Annual Business Administration Conference by William B. Allen Allen.

Chapter 3: Evaluating Financial Performance

Chapter 17 Financial Statement Analysis. Topics Covered  Financial Ratios  DuPont System  Using Financial ratios  Measuring Company Performance 

Profit Analysis of International Defence Industry Event 5 Deakin University CRICOS Provider Code: 00113B.

Part 1: financial statement analysis

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks Pearson Higher Education ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter.

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

CAIIB-Financial Management-MOD-B The Analysis of Financial Statements u The Use Of Financial Ratios u Analyzing Liquidity u Analyzing Activity u Analyzing.

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Financial Statement Analysis K R Subramanyam John J Wild.

3-0 Ratio Analysis 3.3 Ratios also allow for better comparison through time or between companies As we look at each ratio, ask yourself what the ratio.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Financial & Managerial Accounting The Basis for Business Decisions FOURTEENTH EDITION Williams.

1 FINC3131 Business Finance Chapter 4: Financial Statement Analysis.

Chapter 18-1 LO 5 Identify and compute ratios used in analyzing a firm’s liquidity, profitability, and solvency. Ratio Analysis Illustration.

EVALUATING FINANCIAL PERFORMANCE

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

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.

Welcome to Presentation. Presentation on Cross sectional analysis between Metro spinning & Saiham textile.

Interested parties  Shareholders - to measure management’s performance  Investors - to make their investment decisions  Management - to plan and control.

Essential Standard 4.00 Understanding the role of finance in business. 1.

The Analysis of Financial Statements

Analysis of Financial Statements. Learning Objectives  Understand the purpose of financial statement analysis.  Perform a vertical analysis of a company’s.

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.

Theme: Indicators of activity of firms efficiency. Plan: The main indicators of efficiency of activity of firms: profit, sales volume, profitability.

Key West Productions Ratio Analysis Kevin Kokoszka.

Highlights of the Ready Mixed Concrete Industry Data Report Presented to the 46 th Annual Business Administration Conference by William B. Allen Allen.

Zmox Systems Alpha Division Beta Division Gamma Divsion.

©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 1.Calculate 13 financial ratios that measure profitability, asset utilization, liquidity.

Managing In Tough Times “Bits & Tips” Using Financial Records to Measure Farm Profitability.

Chapter 5: Financial Reporting and Analysis Learning Objective 1 Explain the needs of financial statement users. 5-1.

1 Chapter 03 Analyzing Financial Statements McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Key West Productions Performance Analysis By, Kelly Quish.

Dawn Rizzo Chelsea Strickland. Established in 1964 in Canada First U. S. restaurant in 1984 in Tonawanda, N. Y. As of January 1, 2012 there are 4,014.

1 Further Look At Financial Statements  Objective of financial reporting: provide info useful in making decisions To be useful information must be: 

Financial Ratios Report Financial Report Results For all Divisions.

Measuring Corporate Performance

DENVER MANUFACTURING CORPORATION RATIO ANALYSIS. DIVISION A STRENGTHS WEAKNESSES Financial Statements  Current Ratio of 2.67  Quick Ratio of 1.59 

Presented by: Lauren Rudd Tel: March 26, 2013.

Chapter 4 Inter-Company Evaluation of Financial Statements Copyright © Houghton Mifflin Company. All rights reserved.

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)

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Key West Productions Ratio Analysis. Ratios Division A Division B Division C Entire Corporation A) Current Ratio B) Quick Ratio

Ratio Analysis DDDD iiii vvvv iiii ssss iiii oooo nnnn A A A A % 6% 13% 22% Current Ratio Quick Ratio Debt to Asset Ratio Return.

Financing 5.3. Annual Financial Statement and Ratio Analysis Financial Accounting - Where's the Money?

BSA 500 Week 5 Individual Assignment Financial Ratios Analysis (Riordan Manufacturing) Check this A+ tutorial guideline at

Pre – MBA Program Accounting Ratios Nov 11, 2012.

Financial Statement Analysis

INTERNAL ASSESSMENT FINANCE/ACCOUNTING

Analyze financial indicators and ratios to make business decisions.

Analysis Example Financial Ratio

3 Chapter Financial Analysis.

Rentability ~ profitability

FINANCIAL PERFORMANCE For Pfizer & Novartis

Lecture 1 Du Pont Identity.

Financial Decision-Making

Analyze financial indicators and ratios to make business decisions.

FIN 360: Corporate Finance

Analyzing Financial Statements

Presentation transcript:

ACCOUNTING FINANCIAL REPORT ANALYSIS

THE AIM: After conducting the financial report, the company should know how well and how effective, efficient company’s performance in certain period of time. Moreover, the decision of the stockholders will be more accurate if it is based on the financial report analysis. It is done by analyzing the financial report. Some financial ratios are counted as base of financial report analysis.

FINANCIAL REPORT ANALYSIS RATIOS: Liquidity/Current Ratio Liquidity/Current Ratio Solvability/Debt Equity Ratio Solvability/Debt Equity Ratio Rentability Ratios: Rentability Ratios: Return On Assets (ROA) Return On Assets (ROA) Return On Equity (ROE) Return On Equity (ROE) The result must be compared with the average ratio of other companies in the industry.

Liquidity/Current Ratio Liquidity/current ratio is conducted to know how well the company can fulfill their short-term debt. Liquidity/current ratio is conducted to know how well the company can fulfill their short-term debt. It is calculated by comparing the current assets with the short-term debt multiplied by 100%. It is calculated by comparing the current assets with the short-term debt multiplied by 100%. Current Assets x 100% Short-term debt The higher the result, the better company’s performance will be. The company can guarantee that they will fulfill their short-term debt.

Solvability/Debt Equity Ratio Solvability/Debt Equity Ratio is conducted to know how well the company can fulfill their all their debt, even the company is going to bankrupt. Solvability/Debt Equity Ratio is conducted to know how well the company can fulfill their all their debt, even the company is going to bankrupt. It is calculated by comparing the total debts with the total assets multiplied by 100%. It is calculated by comparing the total debts with the total assets multiplied by 100%. Total Debts x 100% Total Assets The smaller the result, the better company’s performance will be. The company can guarantee that they will fulfill all their debt.

Rentability Ratio Rentability Ratio is conducted to know how well the company’s performance to produce the profit sales. Rentability Ratio is conducted to know how well the company’s performance to produce the profit sales. Rentability ratio has two kinds of ratio: Rentability ratio has two kinds of ratio: Return on Assets (ROA). It is calculated by comparing the profit sales with the total assets multiplied by 100%. Return on Assets (ROA). It is calculated by comparing the profit sales with the total assets multiplied by 100%. Profit Sales x 100% Total Assets Return on Equity (ROE). It is calculated by comparing the profit sales with the total equity multiplied by 100%. Return on Equity (ROE). It is calculated by comparing the profit sales with the total equity multiplied by 100%. Profit Sales x 100% Total Equity The higher the result, the better company’s performance to produce profit sales.