1. 財務報表分析 Financial Statements Analysis

3. Financial Statements  Balance Sheet  Income Statement  The Statement of Cash Flow

5. Balance sheet  Assets = Liability + Equity  Current assets –Cash, bills, and currency –Marketable securities –Accounts receivable –Inventories  Plant assets –Gross plant and equipment gross plant assets –Accumulated depreciation –Net plant and equipment  Intangible assets

6. Liabilities  Current liabilities –Accounts payable –Wages and salaries payable –Current portion of long-term indebtedness –Short term bank loans  Long-term liabilities –Notes and bonds –Capital lease –Deferred taxes:

7. Equity  Book value of equity  Par value  Additional paid-in-capital  Treasury stock  Retained earnings

8. The income statement  Revenues - Expenses = Income  Sales or revenues  Cost of goods sold  Gross profit  Operating profit  Net income  Earning available to common shareholders

10. The statement of cash flows  Cash flow from operating activities  Cash flow from investing and financing activities

11. The Sources and Uses of Cash  SourcesUses Decrease in nay assetIncrease in any asset Increase in any liabilityDecrease in any liability Net profit after taxesNet loss Sales of stockDividends paid Depreciation and otherRepurchase or retirement of stock noncash charge

13. Book Value vs. Market Value  Book Value  Market Value

14. ACCOUNTING v.s. FINANCIAL MANAGEMENT  ACCOUNTING  FINANCIAL MANAGEMENT

15. Financial ratio analysis  Financial ratio analysis involves methods of calculating and interpreting financial ratios in order to assess a firm’s performance or status.

16. Steps 1. What is the definition? 2. How to calculate? 3. Is the number food or bad? Time-series analysis Cross-sectional analysis 4. Why? 5. What to do?

17. Financial Ratios Liquidity Asset Management Debt Management Profitability Market value

19. Liquidity  Current ratio: current assets/current liabilities  Quick ratio(acid-test): (current assets- inventories)/current liabilities

20. Asset Management  Inventory turnover:sales/inventories  Days sales outstanding:receivables/(daily sales)  Fixed assets turnover:sales/net fixed assets  Total assets turnover:sales/total assets

21. Debt Management  Total debt to total assets:total debts/total assets  Times-interest-earned (TIE):EBIT/interest charges

22. Profitability  Profit margin on sales:net income available to common stockholders/sales  Basic earning power (BEP):EBIT/total assets  Return on total assets (ROA):net income available to common stockholders/total assets  Return on common equity (ROE):net income available to common stockholders/common equity

23. Market value  Price/earnings (P/E):price per share/earnings per share  Market/book (M/B):market price per share/book value per share

24. Du Pont Equation  ROA=profit margin x total assets turnover  ROE=profit margin x total assets turnover x equity multiplier or = ROA x Equity Multiplier