《财务管理》课程PPT教学课件（英文版）Chapter 03 Evaluating a Firm Financial Performance

Ch. 3- Evaluating a firm 's Financial performance C 2002. Prentice Hall. Inc

Ch. 3 - Evaluating a Firm’s Financial Performance © 2002, Prentice Hall, Inc

Financial statement Analysis Are our decisions maXimIzing shareholder wealth

Financial Statement Analysis • Are our decisions maximizing shareholder wealth?

We will want to answer questions about the firm's Liquidity Efficient use of assets Leverage(financing) Profitability

We will want to answer questions about the firm’s • Liquidity • Efficient use of Assets • Leverage (financing) • Profitability

We will want to answer questions about the firm's Liquidity Efficient use of Assets Leverage (financin Profitability

We will want to answer questions about the firm’s • Liquidity • Efficient use of Assets • Leverage (financing) • Profitability

Financial ratios Tools that help us determine the financial health of a company. We can compare a companys financial ratios with its ratios in previous years(trend analysis) We can compare a companys financial ratios with those of its industry

Financial Ratios • Tools that help us determine the financial health of a company. • We can compare a company’s financial ratios with its ratios in previous years (trend analysis). • We can compare a company’s financial ratios with those of its industry

Example yberDragon corporation

Example: CyberDragon Corporation

Cyber dragon's Balance sheet(s000 Assets: Liabilities equity: Cash S2,540 Accounts payable 9,721 Marketable securities 1.800 Notes payable 8,500 Accounts receivable 18320 Accrued taxes payable 3, 200 Inventories 27,530 Other current liabilities 4.102 Total current assets 50.190 Total current liabilities 25,523 Plant and equipment 43,100 Long-term debt(bonds) less accum deprec. 11, 400 Totalliabilities 47,523 Net plant equip 31, 700 Common stock(s10 par) 13,000 Total assets 81, 890 Paid in capital 10,000 Retained earnings 11,367 Total stockholders equity 34367 Total liabilities equity 81,890

CyberDragon’s Balance Sheet ($000) Assets: Liabilities & Equity: Cash $2,540 Accounts payable 9,721 Marketable securities 1,800 Notes payable 8,500 Accounts receivable 18,320 Accrued taxes payable 3,200 Inventories 27,530 Other current liabilities 4,102 Total current assets 50,190 Total current liabilities 25,523 Plant and equipment 43,100 Long-term debt (bonds) 22,000 less accum deprec. 11,400 Total liabilities 47,523 Net plant & equip. 31,700 Common stock ($10 par) 13,000 Total assets 81,890 Paid in capital 10,000 Retained earnings 11,367 Total stockholders' equity 34,367 Total liabilities & equity 81,890

Sales(all credit) Cyber Dragon's Income SI12,760 Cost of goods sold Statement (85300 Gross Profit 27,460 Operating Expenses: Selling (6,540) General Administrative (9400 Total Operating Expenses (15940 Earnings before interest and taxes(EBIt 11,520 Interest charges Interest on bank notes: (850) Interest on bonds (2310 Total Interest charges (3.160 Earnings before taxes(EBT 8,360 Taxes(assume 40%) (3344 Net income 5,016

Sales (all credit) $112,760 Cost of Goods Sold (85,300) Gross Profit 27,460 Operating Expenses: Selling (6,540) General & Administrative (9,400) Total Operating Expenses (15,940) Earnings before interest and taxes (EBIT) 11,520 Interest charges: Interest on bank notes: (850) Interest on bonds: (2,310) Total Interest charges (3,160) Earnings before taxes (EBT) 8,360 Taxes (assume 40%) (3,344) Net Income 5,016 CyberDragon’s Income Statement

Cyberdragon Other Information Dividends paid on common stock s2800 Earnings retained in the firm 2.216 Shares outstanding (000) 1,300 Market price per share 20 Book value per share 26,44 Earnings per share ○○ 3.86 Dividends per share 2.15

CyberDragon Other Information Dividends paid on common stock $2,800 Earnings retained in the firm 2,216 Shares outstanding (000) 1,300 Market price per share 20 Book value per share 26.44 Earnings per share 3.86 Dividends per share 2.15

1. Liquidity ratios Do we have enough liquid assets to meet approaching obligations?

1. Liquidity Ratios • Do we have enough liquid assets to meet approaching obligations?