Overview What not to do Where to find the right information How to interpret the data.

Slides:

Advertisements

Similar presentations

CHAPTER 4 Analysis of Financial Statements

Advertisements

Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights.

(using financial statements)

Essentials of Investments © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Fourth Edition Irwin / McGraw-Hill Bodie Kane Marcus 1 Chapter 14.

CF Winter Winter Corporate Finance 1.Capital Budgeting  Long-term investments which ones? 2.Capital Structure  Long-term financing.

Tire City Case Pro forma income statements and balance sheets for 1996 & /2 page – project the need for financing for the warehouse project determined.

Ratio Analysis Chapter 6. Ch 62 Chapter 6 homework problems, P6-2, 3, 8, 10, 14, 16-19, are still required.

Fall-02 Investments Zvi Wiener tel: Financial Statement Analysis BKM.

Financial Statement Analysis

Contemporary Investments: Chapter 12 Chapter 12 COMPANY ANALYSIS: THE HISTORICAL RECORD What are the components of a company analysis report? How do analysts.

Financial Statements Economics 98 / 198 Fall 2007 Copyright 2007 Jason Lee.

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Financial Statement Analysis CHAPTER 14.

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

Working with Financial Statements

Valuation Terms and Ratios Tanveer Chandok (Director of Mentorship)

MSE608C – Engineering and Financial Cost Analysis

Financial Statement Analysis

Key Financial Metrics Revisited: Calculations and Applications Rod Feuer & Prof. Frank Howland July 13, 2004.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall. To make informed decisions about a company Helpful in managing the company Comparison.

Evaluating Financial Performance. The Key Questions: 1.Does the firm have the ability to meet maturing financial obligations? 2.Does management do a good.

Financial Statement Analysis

Stanford’s Premier Investing Group

Part 1: financial statement analysis

Investments: Analysis and Behavior Chapter 10- Financial Statement Analysis ©2008 McGraw-Hill/Irwin.

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

Financial Statements Ratio Analysis

Financial Analysis of Starbucks

Historical Performance Analysis Analysts:. 3-Year Compound Average Growth Rates.

Analyzing Financial Statements

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Financial Statement Analysis Chapter 14.

FINANCE BASIC FACTS. Sources of funds Internal Retained profits Sale of assets Using trade credit Investing surplus cash Reducing inventory External Personal.

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

1 FIN 2802, Spring 10 - Tang Chapter 19: Financial Statement Analysis Fin2802: Investments Spring, 2010 Dragon Tang Lecture 15 Financial Statement Analysis.

Key Financial Ratios 1. Profitability Ratios Key ratios – Return on shareholders’ equity (ROE) – Return on assets (ROA) – Return on sales (ROS) – Gross.

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

WORKING WITH FINANCIAL STATEMENTS Chapter 3. Key Concepts and Skills  Understand sources and uses of cash and the Statement of Cash Flows  Know how.

Ratio Analysis Liquid Asset An asset that can be easily converted into cash without significant loss of its original value Liquidity Ratios Ratios that.

McGraw-Hill/Irwin Slide 1 Preliminary Press Releases Releasing Financial Information Quarterly and Annual Reports Securities and Exchange Commission (SEC)

TOPIC: EVALUATING FINANCIAL PERFORMANCE OBJECTIVES: DETERMINE HOW THE FIRM HAS PERFORMED OVER TIME AND RELATIVE TO OTHER FIRMS. EXPLORE METHODS TO IMPROVE.

Chapter 14.  To make informed decisions about a company  Generally based on comparative financial data ◦ From one year to the next ◦ With a competing.

Rhys Johnson Head of Education Asia Pacific

Chapter 2 Financial Ratio Analysis. 2-2 Example 2.1 Problem  Rylan Enterprises has 5 million shares outstanding.  The market price per share is $22.

The Analysis of Financial Statements

Financial Analysis Professor Ronald Miolla. Agenda 1) What are ratios? 2) Purpose of financial ratios. 3) Common financial ratios. 4) Ratios in context.

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

Sales41,139,44,2 Operating profit3,53,43,0 Percentage of net sales8,78,7 Profit before tax3,43,33,1 Percentage of net sales8,48,4 Profit for the period.

Analyzing Financial Statements

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

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

Fourth Edition 1 Financial Statement Analysis. Fourth Edition 2 Outline 1.Financial statements 1.Income statement and margin analysis 2.Ratio analysis.

Chapter 18: FINANCIAL STATEMENT ANALYSIS Remember summative presentation will be December 17 and 18. Paper or Report is due December 19 CHAPTER 18.

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

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 19 Financial Statement Analysis.

Dr Irena JindrichovskaFinancial Analysis1 I. Role of Financial Analysis Financial Statements & Annual report –Financial statements BS, P&L, CF, Statement.

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

Copyright © 2007 Prentice-Hall. All rights reserved 1 Financial Statement Analysis Chapter 13.

Company Name Stock Trading Symbol. Company History Founder: Incorporation Date: IPO Date: Initial Sales Price: Current Sales Price:

McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Financial Statement Analysis CHAPTER 13.

 The McGraw-Hill Companies, Inc., 1999 INVESTMENTS Fourth Edition Bodie Kane Marcus Irwin/McGraw-Hill 19-1 Financial Statement Analysis Chapter 19.

Tyler Mumbleau Sunday January 29, 2017

Historical Performance Analysis

Financial Statement Analysis

Principles of Investing FIN 330

Financial Statement Analysis

Analyze Financial Ratio’s Stock Market Analysis -

Analysis of Financial Statements

Principles of Investing FIN 330

Financial Statement Analysis

Business Finance Michael Dimond.

Ratio Analysis - Overview

Presentation transcript:

Overview What not to do Where to find the right information How to interpret the data

What not to do: Historical Stock Prices Stock Charts Historical Trading Volume Price Multiples

Financial Websites Yahoo! Finance Google Finance MSN Money MorningStar S&P NetAdvantage

Yahoo vs. Google Key Statistics Financial Highlights Financials Income Statement Balance Sheet Cash Flow Financial Statements 5 most recent Quarters 4 most recent Years All Financial Data is from Reuters Reuters Recent News

MSN Money MSN Key Ratio Reports MSN > MSN Money > Ticker Symbol > Print Report > Key Ratios

MSN Money Reports Step #1 Step #2 Example Report

Morningstar Snapshot Industry Peers Growth Profitability Financial Health Financial Statements 10 Year Statements Key Ratios Profitability Growth Rates Cash Flow Financial Health Efficiency Ratios

S&P NetAdvantage Find in the Valley Library Online Databases

Interpreting the Data

Analyzing Financial Statements Arithmetic Mean vs. Geometric Mean Use Compound Annual Growth Rate (CAGR) Ways to Analyze Financial Statements Common Size Trend Year over Year CAGR

4 Key Areas to Look at Profitability Gross Margin, Net Profit Margin Growth Sales, Net Income, Dividends Financial Health D/E Ratio, Current Ratio, Int. Coverage Return on Investments ROE, ROA, ROIC

Ratios ROE Example: Apple has a ROE of 27.9% - Is that good or bad? Neither. All ratios are relatives. Correct Statement: “Apple has a ROE of 27.9% which is 8 percentage points less than the industry average.”

Ratios Gross Margin Example: Apple has a Gross Margin of 34.1%- Is that good or bad? Neither. All ratios are relatives. Correct Statement: “Apple has a Gross Margin of 34.1% which is 306 bases points higher than the industry average.”

Interpret the Data “Apple has a Gross Margin of 34.1% which is 306 bases points higher than the industry average.” “Apple has a ROE of 27.9% which is 8 percentage points less than the industry average.” Any financial data provided, should be accompanied by a statement that answers: What does this mean?