Презентация на тему Financial statement analysis

Презентация на тему Презентация на тему Financial statement analysis, предмет презентации: Финансы. Этот материал содержит 101 слайдов. Красочные слайды и илюстрации помогут Вам заинтересовать свою аудиторию. Для просмотра воспользуйтесь проигрывателем, если материал оказался полезным для Вас - поделитесь им с друзьями с помощью социальных кнопок и добавьте наш сайт презентаций ThePresentation.ru в закладки!

Слайды и текст этой презентации

Слайд 1
Текст слайда:


Financial Statement Analysis

Chapter 17

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Prepared by: C. Douglas Cloud
Professor Emeritus of Accounting
Pepperdine University

Reeve Warren Duchac


PRINCIPLES OF FINANCIAL ACCOUNTING


PRINCIPLES OF ACCOUNTING


ACCOUNTING PRINCIPLES
Using excel for Success

12e

24e

2e


Слайд 2
Текст слайда:

Learning Objectives

Describe basic financial statement analytical methods.
Use financial statement analysis to assess the solvency of a business.
Use financial statement analysis to assess the profitability of a business.
Describe the contents of corporate annual reports.


Слайд 3
Текст слайда:

Learning Objective 1

Describe basic financial statement analytical methods.


Слайд 4
Текст слайда:

Basic Analytical Methods

Users analyze a company’s financial statements using a variety of analytical methods. Three such methods are as follows:
Horizontal analysis
Vertical analysis
Common-sized statements

LO 1


Слайд 5
Текст слайда:

Horizontal Analysis

The percentage analysis of increases and decreases in related items in comparative financial statements is called horizontal analysis.

LO 1


Слайд 6
Текст слайда:

Horizontal Analysis

LO 1


Слайд 7
Текст слайда:

LO 1

Horizontal Analysis



Слайд 8
Текст слайда:

Horizontal Analysis

LO 1


Слайд 9
Текст слайда:

Horizontal Analysis


LO 1


Слайд 10
Текст слайда:

Horizontal Analysis

LO 1


Слайд 11
Текст слайда:

Horizontal Analysis

LO 1


Horizontal Analysis:

Difference $296,500
Base year (2011) $1,234,000

= 24.0%



Слайд 12
Текст слайда:

LO 1

Horizontal Analysis


Слайд 13
Текст слайда:


Horizontal Analysis:

Difference $37,500
Base year (2011) $ 100,000

= 37.5%


LO 1

Horizontal Analysis


Слайд 14
Текст слайда:

EE 17-1



Слайд 15
Текст слайда:

Vertical Analysis

A percentage analysis used to show the relationship of each component to the total within a single financial statement is called vertical analysis.

LO 1


Слайд 16
Текст слайда:

Vertical Analysis

In a vertical analysis of the balance sheet, each asset item is stated as a percent of the total assets.
Each liability and stockholders’ equity item is stated as a percent of the total liabilities and stockholders’ equity.

LO 1


Слайд 17
Текст слайда:

LO 1

Vertical Analysis


Слайд 18
Текст слайда:

Vertical Analysis


Vertical Analysis:

Current Assets $550,000
Total Assets $ 1,139,500

= 48.3%


LO 1


Слайд 19
Текст слайда:

LO 1

Vertical Analysis

In a vertical analysis of the income statement, each item is stated as a percent of net sales.


Слайд 20
Текст слайда:

LO 1

Vertical Analysis


Слайд 21
Текст слайда:

Vertical Analysis

LO 1


Vertical Analysis:

Selling expenses $191,000
Net sales $1,498,000

= 12.8%



Слайд 22
Текст слайда:

EE 17-2



Слайд 23
Текст слайда:

LO 1

Common-Sized Statements

In a common-sized statement, all items are expressed as percentages with no dollar amounts shown.
Common-sized statements are useful for comparing the current period with prior periods, individual businesses with one another, or one business with industry averages.


Слайд 24
Текст слайда:

LO 1

Common-Sized Statements


Слайд 25
Текст слайда:

Learning Objective 2

Describe basic financial statement analytical methods.
Use financial statement analysis to assess the solvency of a business.


Слайд 26
Текст слайда:

LO 2

Solvency Analysis

All users of financial statements are interested in the ability of a company to do the following:
Meet its financial obligations (debts), called solvency.
Earn income, called profitability.


Слайд 27
Текст слайда:

Solvency Analysis

Solvency analysis focuses on the ability of a business to pay its current and noncurrent liabilities.
Solvency and profitability are interrelated. A company that cannot pay its debts will have difficulty obtaining credit, which can decrease its profitability.

LO 2


Слайд 28
Текст слайда:

Current Position Analysis

A company’s ability to pay its current liabilities is called current position analysis. It is of special interest to short-term creditors.

LO 2


Слайд 29
Текст слайда:

Working Capital

The excess of current assets over current liabilities is called working capital. Working capital is often used to evaluate a company’s ability to pay current liabilities.
Working capital is computed as follows:

LO 2

Working Capital = Current Assets – Current Liabilities


Слайд 30
Текст слайда:

Current Ratio

The current ratio, sometimes called the working capital ratio or bankers’ ratio, also measures a company’s ability to pay its current liabilities.
The current ratio is computed as follows:

LO 2


Слайд 31
Текст слайда:

LO 2

Current Ratio

The current ratio for Lincoln Company is computed below.

2012 2011

Current assets $550,000 $533,000
Current liabilities $210,000 $243,000

Current ratio 2.6 2.2


Слайд 32
Текст слайда:

LO 2

Quick Ratio

A ratio that measures the “instant” debt-paying ability of a company is called the quick ratio, or acid-test ratio. It is computed as follows:

Quick assets are cash and other assets that can be easily converted to cash.



Слайд 33
Текст слайда:








LO 2

Quick Assets

The quick ratio for Lincoln Company is computed below.





2012 2011

Quick ratio 1.3 1.0

Quick assets:
Cash $ 90,500 $ 64,700
Temporary Investments 75,000 60,000
Accounts receivable (net) 115,000 120,000
Total quick assets $280,500 $244,700
Current liabilities $210,000 $243,000


Слайд 34
Текст слайда:

EE 17-3



Слайд 35
Текст слайда:

Accounts Receivable Turnover

The relationship between sales and accounts receivable may be stated as accounts receivable turnover. Collecting accounts receivable as quickly as possible improves a company’s solvency.
The accounts receivable turnover is computed as follows:

LO 2


Слайд 36
Текст слайда:

Accounts receivable turnover 12.7 9.2

Net sales $1,498,000 $1,200,000
Accounts receivable (net):
Beginning of year $ 120,000 $ 140,000
End of year 115,000 120,000
Total $ 235,000 $ 260,000
Average (Total ÷ 2) $ 117,500 $ 130,000

2012 2011

Accounts Receivable Turnover

LO 2

The accounts receivable turnover for Lincoln Company is computed below.


Слайд 37
Текст слайда:

Number of Days’ Sales in Receivables

The number of days’ sales in receivables is an estimate of the length of time (in days) the accounts receivable have been outstanding. It is computed as follows:

LO 2


Слайд 38
Текст слайда:

LO 2

Number of Days’ Sales in Receivables





Number of days’ sales in receivables 28.6 39.5

The number of days’ sales in receivables for Lincoln Company is computed below.


Слайд 39
Текст слайда:

EE 17-4



Слайд 40
Текст слайда:

Inventory Turnover

The relationship between the volume of goods (merchandise) sold and inventory may be stated as the inventory turnover. The purpose of this ratio is to assess the efficiency of a firm in managing its inventory.
The inventory turnover is computed as follows:

LO 2


Слайд 41
Текст слайда:





LO 2

Inventory Turnover

Inventory turnover 3.8 2.8

2012 2011

Cost of goods sold $1,043,000 $820,000
Inventories:
Beginning of year $ 283,000 $311,000
End of year 264,000 283,000
Total $ 547,000 $594,000
Average (Total ÷ 2) $ 273,500 $297,000

Lincoln’s inventory balance at the beginning of 2011 is $311,000.


Слайд 42
Текст слайда:

LO 2

Number of Days’ Sales in Inventory

The number of days’ sales in inventory is a rough measure of the length of time it takes to purchase, sell, and replace the inventory.
The number of days’ sales in inventory is computed as follows:


Слайд 43
Текст слайда:





Average Inventory $273,500 $297,000


LO 2

Number of Days’ Sales in Inventory

The number of days’ sales in inventory for Lincoln Company is computed below.

$547,000 ÷ 2

$594,000 ÷ 2

2012 2011

(continued)


Слайд 44
Текст слайда:

Average Inventory $273,500 $297,000
Average daily cost of goods sold $2,858 $2,247


2012 2011

LO 2

Number of Days’ Sales in Inventory

The number of days’ sales in inventory for Lincoln Company is computed below.

$1,043,000 ÷ 365

$820,000 ÷ 365

Number of days’ sales in inventory 95.7 132.2


Слайд 45
Текст слайда:

EE 17-5



Слайд 46
Текст слайда:

Ratio of Fixed Assets to Long-Term Liabilities

The ratio of fixed assets to long-term liabilities is a solvency measure that indicates the margin of safety of the note-holders or bondholders. It also indicates the ability of the business to borrow additional funds on a long-term basis.
The ratio is computed as follows:

LO 2


Слайд 47
Текст слайда:

LO 2

Ratio of Fixed Assets to Long-Term Liabilities

Ratio of fixed assets to
long-term liabilities 4.4 2.4

To illustrate, the ratio of fixed assets to long-term liabilities for Lincoln Company is computed below.


Слайд 48
Текст слайда:

Ratio of Liabilities to Stockholders’ Equity

The relationship between the total claims of the creditors and the owners—the ratio of liabilities to stockholders’ equity—is a solvency measure that indicates the margin of safety for creditors.
The ratio is computed as follows:

LO 2


Слайд 49
Текст слайда:

LO 2

Ratio of Liabilities to Stockholders’ Equity

Ratio of liabilities to
stockholders’ equity 0.4 0.6

The ratio of liabilities to stockholders’ equity for Lincoln Company is computed below.


Слайд 50
Текст слайда:

EE 17-6



Слайд 51
Текст слайда:

Number of Times Interest Charges Earned

Corporations in some industries normally have high ratios of debt to stockholders’ equity. For such corporations, the relative risk of the debt-holders is normally measured as the number of times interest charges are earned (during the year), sometimes called the fixed charge coverage ratio.

LO 2


Слайд 52
Текст слайда:

LO 2

Number of Times Interest Charges Earned

It is computed as follows:




Слайд 53
Текст слайда:

LO 2

Number of Times Interest Charges Earned

The number of times interest charges are earned for Lincoln Company is computed below.





Number of times interest
charges earned 28.1 12.2

2012 2011

Income before income tax $162,500 $134,600
Add interest expense 6,000 12,000
Amount available to meet
interest charges $168,500 $146,600


Слайд 54
Текст слайда:

LO 2

Number of Times Interest Charges Earned

The number of times interest charges are earned can be adapted for use with dividends on preferred stock.
The number of times preferred dividends are earned is computed as follows:


Слайд 55
Текст слайда:

EE 17-7



Слайд 56
Текст слайда:

Learning Objective 3

Describe basic financial statement analytical methods.
Use financial statement analysis to assess the solvency of a business.
Use financial statement analysis to assess the profitability of a business.


Слайд 57
Текст слайда:

Profitability Analysis

Profitability analysis focuses primarily on the relationship between operating results and the resources available to a business.

LO 3


Слайд 58
Текст слайда:

Ratio of Net Sales to Assets

The ratio of net sales to assets is a profitability measure that shows how effectively a company utilizes its assets.
The ratio is computed as follows:

LO 3


Слайд 59
Текст слайда:

LO 3

Ratio of Net Sales to Assets





2012 2011

Net sales $1,498,000 $1,200,000
Total assets:
Beginning of year $1,053,000 $1,010,000
End of year 1,044,500 1,053,000
Total $2,097,500 $2,063,000
Average (Total ÷ 2) $1,048,750 $1,031,500

The ratio of net sales to assets for Lincoln Company is computed below.

(continued)


Слайд 60
Текст слайда:

LO 3

Ratio of Net Sales to Assets





2012 2011

Net sales $1,498,000 $1,200,000
Total assets:
Beginning of year $1,053,000 $1,010,000
End of year 1,044,500 1,053,000
Total $2,097,500 $2,063,000
Average (Total ÷ 2) $1,048,750 $1,031,500

The ratio of net sales to assets for Lincoln Company is computed below.

Ratio of net sales to assets 1.4 1.2


Слайд 61
Текст слайда:





EE 17-8



Слайд 62
Текст слайда:

Rate Earned on Total Assets

The rate earned on total assets measures the profitability of total assets, without considering how the assets are financed.
It is computed as follows:

LO 3


Слайд 63
Текст слайда:

LO 3

Rate Earned on Total Assets

Rate earned on total assets 8.2% 7.3%

This ratio for Lincoln Company is computed below. Total assets are $1,187,500 at the beginning of 2011.


Слайд 64
Текст слайда:

EE 17-9



Слайд 65
Текст слайда:

Rate Earned on Stockholders’ Equity

The rate earned on stockholders’ equity measures the rate of income earned on the amount invested by the stockholders.
It is computed as follows:

LO 3


Слайд 66
Текст слайда:

LO 3

Rate Earned on Stockholders’ Equity





Rate earned on stockholders’
equity 11.3% 10.0%

The rate for Lincoln Company is computed below. Total stockholders’ equity is $750,000 at the beginning of 2011.


Слайд 67
Текст слайда:

Rate Earned on Stockholders’ Equity

The difference between the rate earned on stockholders’ equity and the rate earned on total assets is called leverage.

LO 3


Слайд 68
Текст слайда:

LO 3

Rate Earned on Stockholders’ Equity

For Lincoln Company, the effect of leverage is computed as follows:


Слайд 69
Текст слайда:

LO 3

Rate Earned on Stockholders’ Equity


Слайд 70
Текст слайда:

Rate Earned on Common Stockholders’ Equity

The rate earned on common stockholders’ equity measures the rate of profits earned on the amount invested by the common stockholders.
It is computed as follows:

LO 3


Слайд 71
Текст слайда:

Rate Earned on Common Stockholders’ Equity

LO 3

Lincoln Company had $150,000 of 6% preferred stock outstanding on December 31, 2012 and 2011. Thus, preferred dividends of $9,000 ($150,000 x 6%) are deducted from net income. Lincoln’s common stockholders’ equity is determined as follows:

(continued)


Слайд 72
Текст слайда:



LO 3





Rate earned on common
stockholders’ equity 12.5% 10.9%

Rate Earned on Common Stockholders’ Equity


Слайд 73
Текст слайда:

EE 17-10



Слайд 74
Текст слайда:

Earnings per Share on Common Stock

Earnings per share (EPS) on common stock measures the share of profits that are earned by a share of common stock. GAAP requires the reporting of earnings per share in the income statement.
It is computed as follows:

LO 3


Слайд 75
Текст слайда:

LO 3

Earnings per Share on Common Stock

Earnings per share on common stock $1.64 $1.35

2012 2011

Net income $91,000 $76,500
Less preferred dividends 9,000 9,000
Total $82,000 $67,500
Shares of common stock 50,000 50,000

EPS for Lincoln Company is computed below.


Слайд 76
Текст слайда:

Price-Earnings Ratio

Another profitability measure quoted by the financial press is the price-earnings (P/E) ratio on common stock. The price-earnings ratio on common stock measures a company’s future earnings prospects.
The price-earnings ratio is computed as follows:

LO 3


Слайд 77
Текст слайда:

LO 3

Price-earnings ratio on
common stock 25 20

Price-Earnings Ratio

The P/E ratio for Lincoln Company is computed below.


Слайд 78
Текст слайда:

EE 17-11



Слайд 79
Текст слайда:

Dividends per Share

Dividends per share can be reported with earnings per share to indicate the relationship between dividends and earnings.
Comparing these two per-share amounts measures the extent to which earnings are being distributed to common shareholders. The ratio for dividends per share is at the top of the next slide.

LO 3

(continued)


Слайд 80
Текст слайда:

Dividends per Share

LO 3



Dividends per share of common stock $0.80 $0.60


Слайд 81
Текст слайда:

Dividends and Earnings per Share

LO 3


Слайд 82
Текст слайда:

Dividend Yield

The dividend yield on common stock measures the rate of return to common stockholders from cash dividends.
It is of special interest to investors whose objective is to earn dividends from their investment. It is computed as follows:

LO 3


Слайд 83
Текст слайда:

LO 3

Dividend Yield

Dividend yield on common stock 2.0% 2.2%

The dividend yield for Lincoln Company is computed below.


Слайд 84
Текст слайда:

LO 3

Summary of Analytical Measures

(continued)


Слайд 85
Текст слайда:

(continued)

LO 3

Summary of Analytical Measures


Слайд 86
Текст слайда:

LO 3

Summary of Analytical Measures

(concluded)


Слайд 87
Текст слайда:

Learning Objective 4

Describe basic financial statement analytical methods.
Use financial statement analysis to assess the solvency of a business.
Use financial statement analysis to assess the profitability of a business.
Describe the contents of corporate annual reports.


Слайд 88
Текст слайда:


Corporate Annual Reports

In addition to the financial statements and the accompanying notes, corporate annual reports usually include the following sections:
Management discussion and analysis
Report on internal control
Report on fairness of the financial statements

LO 4


Слайд 89
Текст слайда:



LO 4

Management Discussion and Analysis

Management’s Discussion and Analysis (MD&A) is required in annual reports filed with the SEC.
It contains management’s analysis of current operations and its plans for the future.
Typical items included in the MD&A are:
Management’s analysis and explanations of any significant changes between the current and prior year’s financial statements.

(continued)


Слайд 90
Текст слайда:



LO 4

Management Discussion and Analysis


Important accounting principles or policies that could affect interpretation of the financial statements.
Management’s assessment of the company’s liquidity and the availability of capital to the company.
Significant risk exposures that might affect the company.
Any “off-balance-sheet” arrangements such as leases not included directly in the financial statements.


Слайд 91
Текст слайда:


Report on Internal Control

The Sarbanes-Oxley Act of 2002 requires a report stating management’s responsibility for establishing and maintaining internal control. In addition, management’s assessment of the effectiveness of internal controls over financial reporting is included in the report.
It also requires a public accounting firm to verify management’s conclusions on internal control.

LO 4


Слайд 92
Текст слайда:

Report on Fairness of Financial Statements

All publicly held corporations are required by the Sarbanes-Oxley Act of 2002 to have an independent audit (examination) of their financial statements. The CPA firm that conducts the audit renders an opinion on the fairness of the statements.

LO 4


Слайд 93
Текст слайда:


Appendix

Unusual Items on the Income Statement


Слайд 94
Текст слайда:

Unusual Items on the Income Statement

Unusual items affecting the current period’s income statement include the following:
Discontinued operations
Extraordinary items

Appendix


Слайд 95
Текст слайда:

Discontinued Operations

A company may discontinue a segment of its operations by selling or abandoning the segment’s operations.
A note accompanying the income statement should describe the operations sold, including such details as the date operations were discontinued, the assets sold, and the effect (if any) on current and future operations.

Appendix


Слайд 96
Текст слайда:

Discontinued Operations

Jones Corporation produces and sells electrical products, hardware supplies, and lawn equipment. Because of lack of profits, Jones discontinues its electrical products operation and sells the remaining inventory and other assets at a loss of $100,000. Exhibit 11 (next slide) illustrates the reporting of the loss on the discontinued operations.

Appendix


Слайд 97
Текст слайда:

Discontinued Operations


Appendix


Слайд 98
Текст слайда:

Extraordinary Items

An extraordinary item is defined as an event or transaction with both of the following characteristics:
Unusual in nature
Infrequent in occurrence

Appendix


Слайд 99
Текст слайда:

Extraordinary Items


Appendix


Слайд 100
Текст слайда:

Reporting Earnings per Share

Appendix


Слайд 101
Текст слайда:

Financial Statement Analysis

The End


Обратная связь

Если не удалось найти и скачать презентацию, Вы можете заказать его на нашем сайте. Мы постараемся найти нужный Вам материал и отправим по электронной почте. Не стесняйтесь обращаться к нам, если у вас возникли вопросы или пожелания:

Email: Нажмите что бы посмотреть 

Что такое ThePresentation.ru?

Это сайт презентаций, докладов, проектов, шаблонов в формате PowerPoint. Мы помогаем школьникам, студентам, учителям, преподавателям хранить и обмениваться учебными материалами с другими пользователями.


Для правообладателей

Яндекс.Метрика