Sie sind auf Seite 1von 46

FINANCIAL STATEMENT ANALYSIS

Have you ever wondered what an analyst does with the financial statements of a company?

FINANCIAL STATEMENT ANALYSIS

Do you believe that the financial position of a company as revealed by its financial statements is as clear as a blue sky without any clouds?

FINANCIAL STATEMENT ANALYSIS

A good growth of a company in the recent past implies the same story in future and hence, it represents a good investment opportunity!!! Will you like to grab it?

FINANCIAL STATEMENT ANALYSIS

Do not you ever wonder that a company is earning good profits but they have no money to pay any dividend to the shareholders??!!!!!!!!!

FINANCIAL STATEMENT ANALYSIS

And, so on

FINANCIAL STATEMENT ANALYSIS

If you are really and seriously looking answers of all these

Then ...

Dr. C. P. Gupta

FINANCIAL STATEMENT ANALYSIS

Humble objectives of the Course are


make the participants comfortable with the mysteries lying behind the financial numbers contained in financial statements. make the participants aware of the properties of numbers derived from financial statements.

equip the participants with necessary tools and techniques to derive meaningful information to make sound decisions that require use of information from financial statements. allow the participants to explore and fathom out the strengths and limitations of the numbers derived from financial statements.

Our FIRST STEP is

Towards

Understanding..

Financial Statement Analysis


Financial Statement Analysis comprises all techniques employed by users of financial statements to show important relationships in the financial statements so as to understand business and make decisions in a better way. is a process of evaluating the relationship between components parts of financial statements to obtain a better understanding of a firms financial position and performance.

Steps in Financial Statement Analysis First Step


Select Information relevant to decision under consideration

Second Step
Process the information to Highlight significant relationships

Third Step
Interpret and draw Necessary inferences

Who are the people doing Financial Statement Analysis?

Two sets of people


INTERNAL USERS EXTERNAL USERS

What is the source of information for the EXTERNAL PEOPLE?

External users rely on publicly-available information to perform financial analysis


Such information is contained in a companys annual report

Annual Report contains


THREE BASIC FINANCIAL STATEMENTS 1

Annual Report contains


THREE BASIC FINANCIAL STATEMENTS FOOTNOTES/SCHEDULES TO THE FINANCIAL STATEMENTS 1 2

Annual Report contains


THREE BASIC FINANCIAL STATEMENTS FOOTNOTES/SCHEDULES TO THE FINANCIAL STATEMENTS SUMMARY OF ACCOUNTING METHODS 1 2

Annual Report contains


THREE BASIC FINANCIAL STATEMENTS FOOTNOTES/SCHEDULES TO THE FINANCIAL STATEMENTS SUMMARY OF ACCOUNTING METHODS MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS 1 2

3
4

Annual Report contains


FOUR BASIC FINANCIAL STATEMENTS FOOTNOTES/SCHEDULES TO THE FINANCIAL STATEMENTS SUMMARY OF ACCOUNTING METHODS MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS AUDITORS REPORT 1 2

3
4 5

Annual Report contains


THREE BASIC FINANCIAL STATEMENTS FOOTNOTES/SCHEDULES TO THE FINANCIAL STATEMENTS SUMMARY OF ACCOUNTING METHODS MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS AUDITORS REPORT COMPARATIVE FINANCIAL DATA FOR A SERIES OF YEARS 1 2

3
4 5 6

EXAMPLE #1.
THREE BASIC FINANCIAL STATEMENTS 1

EXAMPLE #1.
THREE BASIC FINANCIAL STATEMENTS 1

EXAMPLE #1.
THREE BASIC FINANCIAL STATEMENTS 1

EXAMPLE #2.
FOOTNOTES/SCHEDULES TO THE FINANCIAL STATEMENTS 2

EXAMPLE #3.
SUMMARY OF ACCOUNTING METHODS 3

EXAMPLE #4.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS 4

EXAMPLE #5.
AUDITORS REPORT

EXAMPLE #6.
COMPARATIVE FINANCIAL DATA FOR A SERIES OF YEARS

Now, we are ready with ALL NECESSARY BAGGAGE OF FINANCIAL INFORMATION.

FINANCIAL STATEMENT ANALYSIS

And, proceed for understanding financial statements of Nestle

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

TOP LINE OF NESTL

FINANCIAL STATEMENT ANALYSIS

BOTTOM LINE OF NESTL

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

FINANCIAL STATEMENT ANALYSIS

All this is our beginning to a new story