1 / 8

Accounting and Finance

Accounting and Finance. Ratio analysis. Accounting and Finance. Accounting: providing financial information Statements: Balance sheet Income statement Ratio analysis Cash flow statement Exam : AMAACF1 and AMAACF2 Business Plan project: ABPBSP1. Ratio analysis.

swaantje-grevink
Download Presentation

Accounting and Finance

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. Accounting and Finance Ratio analysis

  2. Accounting and Finance Accounting: providingfinancialinformation Statements: Balance sheet Income statement Ratio analysis Cash flow statement Exam: AMAACF1 and AMAACF2 Business Plan project: ABPBSP1

  3. Ratio analysis Always compare!! Financial performance analysis: ratio analysis Liquidity Solvency Profitability Examplesusedforcalculation:

  4. Ratio analysis Liquidity: is a company to payoffit’s short term debts? focus on short term debts

  5. Ratio analysis 58% of ourassets is borrowed 42% comes from the owners Solvency: are we able to payoff all ourdebts?

  6. Ratio analysis average: beginning + end year Profitability: howprofitable are we? A. Return onequity:Howprofitable is ourequity: profit indicator forowners

  7. Ratio analysis average Profitability: howprofitable are we? B. Return onassets: howprofitable are ourinvestments? Profit indicator forbanksbutalsocompetitors

  8. Ratio analysis Remember: ratio analysis is alwaysaboutcomparison! Current Ratio: the higher the better , buttoohigh is notgood DebtRatio: the lower the better, butDebt is veryoftencheaperthanEquity. So best is: borrow as much as banksallowyouto borrow Return onAssets: the higher the better Return onEquity: the higher the better

More Related