1.  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

2. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 2 Topics Covered  Executive Paper Corporation  Financial Ratios  The DuPont System  Financial Planning  Growth and External Financing

3. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 3 Executive Paper

4. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 4 Executive Paper

5. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 5 Executive Paper

6. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 6 Executive Paper

7. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 7 Executive Paper

8. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 8 Leverage Ratios

9. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 9 Leverage Ratios Total debt ratio= total liabilities total assets Times interest earned= EBIT interest payments Cash coverage ratio= EBIT+depreciation interest payments

10. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 10 Liquidity Ratios

11. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 11 Liquidity Ratios

12. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 12 Efficiency Ratios

13. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 13 Efficiency Ratios

14. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 14 Profitability Ratios

15. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 15 Profitability Ratios

16. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 16 Market Value Ratios

17. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 17 Market Value Ratios

18. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 18 The DuPont System  A breakdown of ROE and ROA into component ratios:

19. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 19 The DuPont System

20. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 20 The DuPont System asset turnover profit margin

21. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 21 The DuPont System

22. © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw Hill 28- 22 The DuPont System leverage ratio asset turnover profit margin debt burden