公司理财第五版高等院校双语教材·金融系列-chapter 16(PPT 49页).ppt

Chapter 16
Financial statement analysis
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Objectives
Calculate and interpret measures of a firm’s leverage, liquidity, efficiency, and profitability
Use the Du Pont formula to understand the determinants of the firm’s return on its assets and equity
Valuate the potential pitfalls of ratios based on accounting data
Understand some key measures of firm performance such as market value added and economic value added
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Content
Financial ratios
The Du Pont system
Using financial ratios
pany performance
The role of financial ratios
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e statement: financial statement that
shows the revenues, expenses, e
of a firm over a period of time.
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Common-size e statement: e statement that
presents items as a percentage of revenues.
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Balance sheet: financial statement that shows the value of the firm’s assets and liabilities at a particular time.
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Common-size balance sheet: balance sheet that
presents items as a percentage of total assets.
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Four types of financial ratios
Leverage ratios show how heavily pany is in debt.
Liquidity ratios measure how easily the firm can lay its hands on cash.
Efficiency or turnover ratios measure how productively the firm is using its assets.
Profitability ratios are used to measure the firm’s return on its investments.
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Leverage ratios
Debt increases returns to shareholders in good times and reduces them in bad times, it is said to create financial leverage.
Leverage ratios measure how much financial leverage the firm has taken on.
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Debt ratio
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