1. 12. Financial analysis B 12 / 1 BUSINESS ECONOMICS 5 / 6
Copyright Mark Van Couwenberghe,

2. B 12 / 2
12.0 OVERVIEW
12.1 FINANCIAL ANALYSIS: WHAT + WHY? page B 12 / 3
12.2 BALANCE SHEET page B 12 / 4
12.3 INCOME STATEMENT page B 12 / 6
12.4 LIQUIDITY page B 12 /
12.5 SOLVENCY page B 12 /
12.6 PROFITABILITY page B 12 /
12.7 OPERATING CYCLE page B 12 /
12.8 EXERCISES page B 12 /
12.9 VOCABULARY page B 12 /
Copyright Mark Van Couwenberghe,

3. 12.1 FINANCIAL ANALYSIS: WHAT + WHY?
B 12 / 3
12.1 FINANCIAL ANALYSIS: WHAT + WHY?
Financial analysis consists of an analysis of the company’s financial statements (balance sheet + income statement; see later) to evaluate the financial performance of the company
It is a very important source of information for various stakeholders
Explain why:
Management:
Shareholders:
Creditors:
Competitors:
Customers:
Employees:
Government …
Copyright Mark Van Couwenberghe,

4. 12.2 BALANCE SHEET ASSETS = LIABILITIES B 12 / 4
A balance sheet displays the sources and use of the company’s resources at a given point in time.
ASSETS
LIABILITIES 1
IMMATERIAL FIXED ASSETS 8
SHARE CAPITAL 2
MATERIAL FIXED ASSETS 9
RESERVES 3
FINANCIAL FIXED ASSETS 10
RETAINED EARNINGS 4
RECEIVABLES > 1Y
EQUITY
FIXED ASSETS 11
PROVISIONS 5
STOCKS 12
PAYABLES > 1Y 6
RECEIVABLES < 1Y
LT DEBT 7
LIQUID ASSETS 13
PAYABLES < 1Y
CURRENT ASSETS
ST DEBT
TOTAL
ASSETS = LIABILITIES
Copyright Mark Van Couwenberghe,

5. B 12 / 5
EXPLANATION 1 2 3 4 5 6 7 8 9 10 11 12 13
Copyright Mark Van Couwenberghe,

6. B 12 / 6
12.3 INCOME STATEMENT
An income statement displays the costs and revenue of the company over a certain periode of time and enables to define the result (profit or loss)
COSTS
REVENUE 1
RAW MATERIALS 7
TURNOVER 2
SERVICES 3
STAFF 4
DEPRECIATION
OPERATIONAL COSTS
OPERATIONAL REVENUE 5
INTERESTS 8
FINANCIAL COSTS
FINANCIAL REVENUE 6
EXCEPTIONAL COSTS 9
EXCEPTIONAL REVENUE
TOTAL
Copyright Mark Van Couwenberghe,

7. B 12 / 7 RESULT RESULT BEFORE TAXES TAXES EXPLANATION NET RESULT 1 2 34 5 6 7 8 9
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8. CURRENT ASSETS - STOCKS ___________________________
B 13 / 8
12.4 LIQUIDITY
Liquidity means if a company is capable to pay the ST debt
Especially interesting information for suppliers: will the company pay its invoices on time?
NET WORKING CAPITAL =
CURRENT ASSETS -
ST DEBT
CURRENT RATIO =
CURRENT ASSETS
__________________
ST DEBT
ACID RATIO =
CURRENT ASSETS - STOCKS
___________________________
ST DEBT
Copyright Mark Van Couwenberghe,

9. 13.5 EXERCISES B 13 / 15 Visit the website of the Kinepolis Group
and gather informaton that allows you to set-up a BSC for the company
Perspective
Critical success factor (2 per perspective)
Performance indicator (2 per perspective) 1
1.1
1.2 2
2.1
2.2
Copyright Mark Van
Couwenberghe,

10. B 13 / 16 Perspective Critical success factor (2 per perspective)
Performance indicator (2 per perspective) 3
3.1
3.2 4
4.1
4.2 5
5.1
5.2
Copyright Mark Van Couwenberghe,

11. B 13 / 17
13.6 VOCABULARY EN NL
Copyright Mark Van Couwenberghe,

12. B 13 / 18 EN NL
Copyright Mark Van Couwenberghe,

13. B 13 / 19 EN NL
Copyright Mark Van Couwenberghe,