Beruflich Dokumente
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Statement
Analysis
Presented by:
Elemos, Pia Angela
Feliciano, Kathlene Mae
Ramos, Christianne Nicole
Tumbaga, Katrina Mae
Zamora, Patricia Nicole
2010
2011
2012
Statement
Assets
Cash and Cash
Equivalent
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Property, Plant &
Equipment (net)
TOTAL ASSETS
148,000
283,000
322,000
10,000
763,000
460,000
1,223,000
290,000
81,000
28,000
399,000
150,000
549,000
100,000
410,000
616,000
14,000
1,140,000
904,000
90,000
394,000
696,000
15,000
1,195,000
974,000
2,044,000
2,169,000
295,000
290,000
94,000
94,000
116,000
116,000
505,000
500,000
453,000
530,000
958,000
1,030,000
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Operating Income
Interest Expense
Earnings before tax
Income tax expenses
Earnings after tax
Cash Dividend
112,000
103,000
91,000
50,000 50,000
;50,000
HORIZONTAL
TREND
ANALYSIS
Horizontal or Trend
Analysis
A type of time-series analysis of
evaluating what has occurred over a
period of time in relation to a particular
starting point.
The main goal is to evaluate the
progress and changes in the firms
resources and claims to such resources.
Items are expressed as a percentage of
a base year or the starting point of the
evaluation.
COMMON SIZE
FINANCIAL
STATEMENT
ANALYSIS
2010
2011
2012
Assets
Cash and Cash
Equivalent
Accounts Receivable
Inventory
Other Current Assets
Property, Plant &
Equipment (net)
TOTAL ASSETS
5%
90,000
4%
18%
32%
1%
45%
1,223,0
00
100
%
2,044,0
00
100
%
2,169,0
00
100%
13%
4%
5%
24%
53%
100%
Net Sales
Cost of Goods Sold
Operating Expenses
Interest Expense
Income tax expenses
Earnings after tax
1,235, 100
000 %
849,00
69%
0
180,00
15%
0
20,000 2%
74,000 6%
112,00
9%
0
2,106, 100
000 %
1,501,0
71%
00
383,00
18%
0
51,000 2%
69,000 3%
103,00
5%
0
2,211,
100%
000
1,599,0
72%
00
402,00
18%
0
59,000
3%
60,000
3%
91,000
4%
RATIO
ANALYSIS
Ratio Analysis
A method or process by which the
relationship of items or group of items
in the financial statements are
computed, and presented
Used to interpret the financial
statements so that the strengths and
weaknesses of a firm, its historical
performance and current financial
condition can be determined.
Profitability Evaluation
Return on Asset (ROA)
This ratio measure the firms effectiveness
and efficiency in utilizing its assets to
generate income without reference to the
financing tool used in acquiring those assets.
2011
2012
Profitability Evaluation
Return on Equity (ROE)
This ratio measures the return provided to
the firms shareholders. It integrates the
result of the firms three business activities;
operating, investing, and financing.
2011
2012
Du Pont Analysis
The analysis focuses on the three types
of business activities, the operating
activities represented by the Sales
Margin, the investing activities
represented by the Asset Turnover and
the financing activities represented by
the Capital Multiplier.
Formula
Sales Margin =
Asset Turnover =
Capital Multiplier =
Risk Evaluation
Liquidity Ratios
Measures the firms ability to pay short-term
commitments using short-term resources.
Current Ratio =
Activity Ratios
Also called as efficiency ratios or turnover
ratios. These ratios show the relationship
between sales and various assets of a firm.
Inventory Turnover
(ITO)
Receivable Turnover
(RTO)
2011
2012
5.5 times
Debt Ratio
Equity Ratio
Debt to Equity Ratio
Times interest earned
Debt Ratio
Equity Ratio
2011
2012
53%
53%
Debt to Equity
Ratio
Times interest
earned
CASH FLOW
ANALYSIS
operations?
What expenditures are made with cash from
operations?
How are dividends paid when confronting an operating
loss?
What is the source of cash for debt payments?
How is the increase in investments financed?
What is the source of cash for new assets?
Why is cash lower when income increased?
What is the use of cash received from new financing?
Other Definitions
1. Free Cash Flow = Cash flow from operations
Net capital expenditure required to maintain
productive capacity Dividends on preferred
stock and common stock.
2. Free cash flow = Net operating profit after
taxes Increase in net operating assets
(dividends not considered as they are financing
activity).
3. EBIT (1-t) + Depreciation Change in net
working capital Capital expenditure
profit.
Increase (decrease) in Gross profit:
Quantity factor:
Sales this year at last years prices
Less: Sales last year
Increase (Decrease) in sales
Pxx
(xx)
Pxx
Price factor:
Sales this year
Pxx
Less: Sales this year at last years prices
(xx)
Increase (Decrease) in Gross profit
Pxx
Cost factor:
COS this year
Pxx
Less: COS this year at last years cost
(xx)
Increase (Decrease) in Gross profit
Pxx
Net increase (decrease) in GP
If unit selling price, unit cost and quantity sold for the current
and previous years available, this simplified format may be used:
Increase in Sales
Quantity factor = change in quantity x selling price last year
Pxx
Price factor = change in price x quantity sold last year
xx
Quantity/Price factor = change in quantity x change in selling
price
xx
Total
Pxx
Less: Increase in COS
Quantity factor = change in quantity x unit cost last year
Pxx
Price factor = change in price x quantity sold last year
xx
Quantity/Price factor = change in quantity x change in unit
cost
xx
Total
USE OF COMPUTER
IN FINANCIAL
ANALYSIS
Use of Computers in
Financial Analysis
With computers, the graphical approach and the
mathematical approach to financial analysis are easy
to use
The users of the analysts report will appreciate trend
analysis through a line graph that literally highlight the
change of each line item
140%
120%
100%
80%
60%
40%
20%
0%
1
-20%
-40%
-60%
Information
Weakness in
Financial
Statement Analysis
BUSINESS
VALUATION
Business Valuation
An examination conducted towards
rendering an estimate or opinion as to
the fair market value of a business
interest at a given point in time
Valuation is an art rather than exact
science
It is nothing more than an expression of
informed opinion which is based on fact and
judgment
Valuations are not precise rather they are
generally stated as range in values
Approaches in
Determining Value
Empirical Approach
Fair Market Value is best determined by
reference to open market transactions
involving similar businesses
Investment Approach
Fair Market Value is best determined by
reference to detailed investment analysis
using the techniques of financial statement
analysis