文档介绍：CORPORATE FINANCE
谢群(Mars)
International Business Faculty
Email: 813448342@
Phone:188 1865 1852
Chapter 3
Working With Financial Statements
Learning objectives
How to standardize financial statements parison purposes
How pute and, more importantly, interpret mon ratios(short-term solvency measures, long-term solvency measures,asset management measures, profitability measures,market value measures)
The determinants of a firm’s profitability and growth
4
Standardized Financial Statements
One of the main purpose of using a financial statement, is pare the differences of assets/liabilities situation and operation performance among corporations. There exist difficulties of how pare them if they are different in industries, size etc.,
So it would help if we can standardize statements;
One mon and useful way is to work with percentages instead of total dollars. The resulting financial statements are mon-size statements;
They are also useful panies of different sizes, particularly within the same industry;
5
Common-Size Balance pute all accounts as a percent of total assets, as shown on Table on mon-Size e pute all line items as a percent of sales, as shown on Table on P41
6
Ratio Analysis
Ratios also allow for parison through time or panies
As we look at each ratio, ask yourself what the ratio is trying to measure and why is that information important
Ratios are used both internally and externally
7
ratio analysis
Short-term solvency or liquidity ratios
Long-term solvency or financial leverage ratios
Asset management or turnover ratios
Profitability ratios
Market value ratios
8
Short term solvency measures (短期偿债比率)
Short term solvency ratios as a group are intended to provide information about a firm’s liquidity, so it is also called liquidity measures.
Primary concern is the firm’s ability to pay its bills over the short run without undue. The ratios focus on current assets and liabilities
9
Current Ratio = CA / CL
708 / 540 =