1 / 53

CHAPTER 2

CHAPTER 2. Financial Statements and Ratio Analysis. Chapter Outline. What are financial statements? What are the main types of financial statements? What is financial statement analysis? What are standardized financial statements? What is ratio analysis?. Financial Statements.

kimo
Download Presentation

CHAPTER 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 2 FinancialStatements and RatioAnalysis

  2. Chapter Outline • What are financial statements? • What are the main types of financial statements? • What is financial statement analysis? • What are standardized financial statements? • What is ratio analysis?

  3. FinancialStatements • Whatarefinancialstatements? • Whywould an interestedpartyneedthem? • Whowould be theinterestedparties? • Howtoaccessthem?

  4. BalanceSheet • What is it? • Whatarethemainaccountcategories in BS? • Whatareitems on the BS? • Liquidityprinciple & Maturitymatching • A = L + E • GAAP & IFRS

  5. BalanceSheet (BİM) (TL)

  6. BalanceSheet (BİM) (TL)

  7. Net Working Capital and Liquidity • Net Working Capital • Liquidity

  8. Market Value vs. Book Value • Book value • Market value

  9. Income Statement • What is theincomestatement? • Whatarethemainitems on theincomestatement? • Revenues – Expenses = Income • EPS • BIM IncomeStatement

  10. FinancialStatementAnalysis • PersonalBudgetex. • Comparisonswithothersand in time • Earlywarning & signals • Who else wouldbenefit?

  11. StandardizedFinancialStatements • Common size financialstatements • Trend analysis • Whichcompaniestocomparewith? BOSSA vs. ? • Benchmarking

  12. Common Size FinancialStatement

  13. Common Size FinancialStatement

  14. Trend Analysis

  15. Trend Analysis

  16. RATIO ANALYSIS

  17. RatioAnalysis • Liquidityratios • Longtermsolvencyratios • Turnoverratios (assetmanagement) • Profitabilityratios • Market valueratios • TheDuPontIdentity

  18. LiquidityRatios • Shorttermassets & liabilities • Shorttermcreditors • Market value vs. bookvalue • Highdailyvolatility

  19. LiquidityRatios • CurrentRatio currentassets currentliabilities • Shorttermcoverageability • Tat vs. Bossa??? • Optimal ratio? Toohightoogood? • Industrycomparison

  20. LiquidityRatios • Quick (acid-test) ratio (currentassets – inventories) currentliabilities • Inventoryliquidity • Durability of liquidity • TAT vs. Equipmentproducers • Cashratio

  21. LeverageRatios • Longtermsolvency • Debt-to-equityratio total debt owner’sequity • Bossa? Tat? • Capitalstructuremix: toolowtoogood? • Fundsbycreditors vs. shareholders

  22. LeverageRatios • Debt-to-total assets (bookleverage) ratio total debt total assets • Shorttermdebt-to-total assetsratio shorttermdebt total assets • Longtermdebt-to-total assetsratio longtermdebt total assets • Tat? Bossa?

  23. LeverageRatios • Longtermdebtratio longtermdebt longtermdebt + owner’sequity • Shorttermdebtvolatility • Accountpayables: tradepolicy • Bossa? Tat?

  24. LeverageRatios • Timesinterestearned EBIT InterestExpense • EBIT • Financialdistress & capacitytoborrowmore • Loworhigh? • Bossa? Tat?

  25. LeverageRatios • Cashcoverageratio EBIT + Depreciation InterestExpense • Depreciation: noncashexpense • Financialdistress & capacitytoborrowmore • Loworhigh? • Bossa? Tat?

  26. TurnoverRatios • Assetmanagementratios • Efficiency of assetusage • Inventoryturnover • Receivablesturnover • Payablesturnover

  27. TurnoverRatios • Inventoryturnover cost of goodssold inventory • Tat? Bossa? • Inventoryefficiency: Loworhigh? • Days’ sales in inventory 365 days inventoryturnover

  28. TurnoverRatios • Receivablesturnover sales accountsreceivables • Days’ sales in receivables 365 days receivablesturnover • Collectionpolicy: higherorlower? • Tat? Bossa?

  29. TurnoverRatios • Assetturnoverratio sales total assets • Salesgenerationefficiency: highorlow? • Tat? Bossa?

  30. ProfitabilityRatios • Efficiency of operations & profits • Profitmargin net income sales • Saleefficiency & costsincurred • Higherorlower? • Tat? Bossa?

  31. ProfitabilityRatios • Return on assets (ROA) net income total assets • Assetutilization • Higherorlower? • Tat? Bossa?

  32. ProfitabilityRatios • Return on equity (ROE) net income owner’ equity • Shareholderfunds’ utilization • Higherorlower? • Tat? Bossa?

  33. Market ValueMeasures • Forwhichcompanies? • EPS net income # of sharesoutstanding • Price-earningsratio pricepershare earningspershare • Lowerorhigher? Futureprospects vs. misguiding • Tat? Bossa?

  34. DuPontIdentity • ROE • Profitmargin X total assetturnover X equitymultiplier • Operatingefficiency • Assetuseefficiency • Financialleverage

  35. SUPPLEMENTARY DATA

  36. BalanceSheet (TAT) (in TL)

  37. BalanceSheet (TAT) (in TL)

  38. IncomeStatement(TAT) (in TL)

  39. BalanceSheet (BOSSA) (in TL)

  40. BalanceSheet (BOSSA) (in TL)

  41. IncomeStatement(BOSSA) (in TL)

  42. ADDITIONAL MATERIAL

  43. BalanceSheet(MİGROS) (in 1,000 TL)

  44. BalanceSheet(MİGROS) (in 1,000 TL)

  45. IncomeStatement(MİGROS) (in 1,000 TL)

  46. LiquidityRatios • Currentratio? • Quick (acid-test) ratio?

  47. LeverageRatios • Debt-to-equityratio? • Debt-to-total assets (bookleverage) ratio? • Shorttermdebt-to-total assetsratio? • Longtermdebt-to-total assetsratio?

  48. LeverageRatios • Longtermdebtratio? • Timesinterestearned • Cashcoverageratio?

  49. TurnoverRatios • Inventoryturnoverratio? • Days’ sales in receivables • Receivablesturnoverratio? • Day’ssales in receivables? • Assetturnoverratio?

More Related