tailieunhanh - Lecture note Essentials of corporate finance – Chater 3: Working with financial statements

In this chapter, you will know how to standardise financial statements for comparison purposes, know how to compute and interpret important financial ratios, know the determinants of a firm’s profitability and growth, understand the problems and pitfalls in financial statement analysis. | 3- McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. 3- Key Concepts and Skills Know: How to standardize financial statements for comparison purposes How to compute and interpret important financial ratios The determinants of a firm’s profitability and growth Understand the problems and pitfalls in financial statement analysis 3- Chapter Outline Standardized Financial Statements Ratio Analysis The Du Pont Identity Internal and Sustainable Growth Using Financial Statement Information 3- Standardized Financial Statements Common-Size Balance Sheets All accounts = percent of total assets (%TA) Common-Size Income Statements All line items = percent of sales or revenue (%SLS) Standardized statements are useful for: Comparing financial information year-to-year Comparing companies of different sizes, particularly within the same industry Return to Quiz 3- Prufrock Corporation Balance Sheets - Table . | 3- McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. 3- Key Concepts and Skills Know: How to standardize financial statements for comparison purposes How to compute and interpret important financial ratios The determinants of a firm’s profitability and growth Understand the problems and pitfalls in financial statement analysis 3- Chapter Outline Standardized Financial Statements Ratio Analysis The Du Pont Identity Internal and Sustainable Growth Using Financial Statement Information 3- Standardized Financial Statements Common-Size Balance Sheets All accounts = percent of total assets (%TA) Common-Size Income Statements All line items = percent of sales or revenue (%SLS) Standardized statements are useful for: Comparing financial information year-to-year Comparing companies of different sizes, particularly within the same industry Return to Quiz 3- Prufrock Corporation Balance Sheets - Table 3- Prufrock Corporation Common-Size Balance Sheets Table 3- Prufrock Corporation Income Statement Table 3- Prufrock Corporation Common-Size Income Statement Table Tells us what happened to each dollar of sales 3- Ratio Analysis Allow for better comparison through time or between companies Used both internally and externally For each ratio, ask yourself: What the ratio is trying to measure Why that information is important 3- Categories of Financial Ratios Liquidity ratios or Short-term solvency Financial leverage ratios or Long-term solvency ratios Asset management or Turnover ratios Profitability ratios Market value ratios 3- Table Return to Quiz 3- Liquidity Ratios Current Ratio = CA / CL 708 / 540 = times Quick Ratio = (CA – Inventory) / CL “Acid Test” (708-422) / 540 = times Cash Ratio = Cash / CL 98/ 540 = .18 times 3- Financial Leverage Ratios Total Debt Ratio = (TA – TE) / TA (3588-2,591)

• Tài chính doanh nghiệp
• Corporate finance
• Essentials of corporate finance
• Financial management
• Business finance
• Business organisation
• Financial statements
• Working with Financial Statements
• Statements Cash Flow
• Standardized Financial Statements
• The DuPont Identity
• Using Financial Statement Information
• Principle of accounting
• Lecture Principle of accounting
• The basic financial statements
• Statements of financial position
• Statements of comprehensive income
• Lecture Accounting 1
• Financial accounting
• Preparation financial statements
• Balancing ledger account
• Financial system
• Lecture Accounting and financial system
• Interpretation of financial statements
• Financial records
• Government grants
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Financial statements analysis
• Principles of financial accounting
• Accounting information
• Analysis of financial statements
• Trend analysis
• Independent external auditor
• Financial statements’ preparers
• Financial statements’ users
• Users of financial statements in Saudi Arabia
• Substantial audit expectation
• Summary of PhD thesis
• Thesis summary of Doctor of Accounting
• Auditing of financial statements
• Auditing time of financial statements
• Accounting in practice
• Lecture Accounting in practice
• Statement of cash flow
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Horizontal analysis
• Audited financial statements
• Group financial statements
• Auditing services
• Assurance services
• Contemporary auditing environment
• Financial statement audit
• Financial statements statements
• The accounting information system
• Accrual accounting concepts
• Analyzing inventory
• The factors affect
• The quality of financial statements audit
• Vietnam businesses
• Especially the financial markets
• Financial statements audit in enterprises
• financial services
• financial ratios
• corporate governance
• financial environment markets
• Lecture Financial accounting
• Business entity
• Accounting equation
• Financial statement articulation
• Accounting activities
• Business firms
• The financial reporting reform
• Fundamentals of financial management
• Financial statement
• Quản lý tài chính
• Ratio analysis
• Financial Reporting
• Framework of financial reporting
• Lecture Framework of financial reporting
• Regulatory system
• Financial statements comprises