FINANCIAL STATEMENT ANALYSIS Paula Bianca Formantes Financial Analysis The process of understanding the profitability and risk of a firm through an in depth review or study of the basic financial statements‚ by the use of different tools and techniques. Several Financial Analysis Techniques: 1. Horizontal Analysis 2. Vertical Analysis 3. Ratio Analysis BALANCE SHEET SAN MIGUEL CORPORATIOS CURRENCY IN MILLIONS OF PESOS DEC 31 2011 DEC 31 2012 ASSETS LIABILITIES & EQUITY Cash And Equivalents
Premium Generally Accepted Accounting Principles Balance sheet Financial ratios
Chapter 5: Essentials of Financial Statement Analysis Evaluating accounting “quality” How do we define financial reporting quality? Qualitative characteristics of accounting Information: Understandability Decision usefulness Reliability Relevance Consistency Comparability 1 Attributes of High Quality Financial Reporting Financial reporting (earnings) quality has been considered positively associated with the following: High persistence of earnings and cash flows
Premium Balance sheet Generally Accepted Accounting Principles Financial ratios
Financial Analysis using Excel Function Information requirements for function Dates Prices and par values Frequency‚ and related Yields and interest/ discount rates Discount Any amount paid at maturity ? Frequency of payme nts pa First coupon Redemption amount Investment amount # of periods Settlement Par/coupon Maturity COUPDAYBS COUPDAYS COUPDAYSNC COUPNCD COUPPCD COUPNUM DURATION MDURATION PRICE PRICEDISC PRICEMAT RECEIVED YIELD YIELDDISC YIELDMAT ACCRINT
Premium Spreadsheet
Problem of the case CEO of Kodak had to set out new strategy for film products‚ because during January 17 and January 24‚ 1994‚ Kodak lost 8% in value on rumors if a price cut. Kodak was still a dominant in photo film market‚ but he had a lot of competitors like Fuji Co. and Konica Corp. They were offering consumers lower priced products. Market share of Kodak was falling from about 76% to 70% over the past five years. Kodak introduced new product‚ Funtime Film‚ which would be priced at lower
Premium Brand Marketing Advertising
Financial Statement Analysis Financial Statement Analysis The financial health of an organization can be evaluated using ratio analysis. A comprehensive review of Landry’s Restaurants‚ Inc using their 2003 Annual Report will use seven different ratios calculated from Landry ’s financial statements. The ratio analysis will test the profitability‚ liquidity‚ and solvency of the company. Liquidity ratios measures the "short-term ability of the enterprise to pay its maturing obligations
Premium Balance sheet Generally Accepted Accounting Principles Asset
Chapter 13 … Analyzing Financial Statements Chapter Outline I. Basics of Analysis -- Transforming data into useful information for decision making. A. Purpose of Analysis To help users (both internal and external) make better business decisions. 1. Internal users (managers‚ officers‚ internal auditors‚ consultants‚ budget officers‚ and market researchers) make the strategic and operating decisions of a company. 2. External users (shareholders‚ lenders‚ directors‚ customers‚ suppliers
Premium Balance sheet Income statement Generally Accepted Accounting Principles
COMPANY Financial Statement Analysis Project Table of Contents Part I ……………………………………………………………3 Part II …………………………………………………………...5 Part III …………………………………………………………..6 Part IV …………………………………………………………..7 Part V ……………………………………………………….......8 Part VI ………………………………………………………….10 Part VII …………………………………………………………11 Appendices …………………………………………………......12 Appendices AAPL 5 Year Balance Sheet Report…………………………………….12 5 Year Income Statement………………………………………...13 5 Year Cash Flow Statement……………………………………
Premium Income statement Balance sheet Cash flow statement
Meghna Oil Limited MJL Bangladesh Limited Items 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Items 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Lequidity Rarios Lequidity Rarios (1) Current Ratio 1.05 1.08 1.09 1.07 1.1 (1) Current Ratio 1.36 1.45 1.68 2.41 1.48 (2) Quick Ratio 0.54 0.75 0.58 0.77 0.86 (2) Quick Ratio 0.87 0.78 0.89 1.81 1.04 Operating Ratios Operating Ratios (3) Accounts Receivable Turnover Ratio 10.6 7.87 11.58 6.59 9.21 (3)
Premium Financial ratios Financial ratio Generally Accepted Accounting Principles
MA932 Financial Statements Analysis Coursework 1 1. The circumstances in which the revaluation model may be used: (In accordance with IAS 38) There is active market‚ since the fair value of an intangible asset must be determined by reference to an active market in that type of asset. Sufficient regularity to ensure that the carrying amount of an intangible asset does not differ materially from fair value A. The 25000 revaluation decrease on 31 December 2011 should be recognized as an expense
Premium Balance sheet Generally Accepted Accounting Principles Asset
Appendix 2A Financial Statement Analysis Using a Return on Equity (ROE) Framework 1 Appendix 2A Financial Statement Analysis Using a Return on Equity (ROE) Framework Between 1992 and 2003 the commercial banking industry experienced a period of record profits. This was quite a change from the late 1980s and early 1990s‚ when banks were failing in record numbers. Despite record profits‚ many FIs have areas of weakness and inefficiency that need to be addressed. One way of identifying
Premium Generally Accepted Accounting Principles Financial ratios Financial ratio