Chapter 3: Financial Analysis PDF

CHAPTER 3 : Financial Analysis Who need undertake FA ? Investor to → profitability employee →...

CHAPTER 3 : Financial Analysis Who need undertake FA ? Investor to → profitability employee → growth uiétnsoéti KH Wang ngeiy Financial managers → overall financial conditions ( ten Kit Cho Hai 6- ou tax maintain economy → , ' creditors Chu nd ng cha repayment ability → : , way 1. Balance sheet 3.1. Financial statements 1. Cash glow statement 3. Income statement 4. Notes to financial statement coin cécty hétoan ≠ d-É Utra tinh Minh both voi ciao 3. 1. 1. Balance Sheet Assets Kapital - Current assets - liabilities liabilities long-term assets + Short Term - - + long - term liabilities - Owner 's equity Kun chat that die'm " tin buh oink → Thing trén balance sheet Mang , " chypnhauh Total Assets = Total liabilities + Owner 's Equity Tinh thanh hheoin aid cat the left hand - side Logi tai Sain gia'm doin g the balance sheet reports quoi ' 3. 1.2. Income statement : Baio case lit binh doanh droit thiol hi thuséiphim quay cho.im ' " Thing tinh " tin mang → u , Total Revenue - Total Expenses = Net income  Deann thuthuoin CP quoin tri - , CP hh-Ñu hao 1 EAT tax / = earning after 3. 1.3. Cash glow statement : Baia Caio win Chuy Én tie-in + & déng lien voto voi ra via du → un tha uh uheoin.tur.io tédoroytién ' bein d? cé the ghinh.in Ici LN nhutrg China this tie-in Kui DN hang , → go.ita- accounts receivable Dui cé income statement vÑn iéin cash glow statement cash in flows - cash out glows = Net cash flows  Operating cash flows states of goods or services i divide at income - : ( in ) , pay suppliers employees ; pay government for taxes , pay Investing cash glows States og fixed assets ; sale og debt or equity - : securities Financing cash glows borrowing : pay shareholders divide uts - ,  ' 4. Notes + a Financial Statement : Thiyét Minh BCTC Other sources og information General economic situation [ and competitors Industry Financial Ratios 3. 2. Analysis 3. 2.1. Financial structure rates explain the structure A L E - ay ,. - Reflect the degree the financial analysis  :c sd go.it ñ 'y d-in bei tin Chinh uhuéch d- o.ie " - ' vie no ' con - IN moi DN. ÉP ' d-at drift. bñ d- SH thiéu hut vÉn d- é DN dy tri hot wink doanh khooinvay voi lien lai du.ci Huh iac Chipwi tail Chinh via DN '.. San d- éd? Uhoiu this vote TN CT  3. 2.2. liquidity Ratios khi DM bain hit is again hqn The measurement g a company 's capacity to pay its outstanding ia chiyén thanh lien tht DN liabilities with its assets on hand Uhoindng ngoinh.an-d-oimboioDNnganha.in cédu an d- éiroihhooinn ? truing nñ thanh toan 0 tap ' → → liquidity rates + Én t.at it hot bth ' n9Én han no. account - Payable ( longterm Hlaing n debt current assets current liabilities KN thanh Uhooin ↓ - cash ✗ equivalent - Account receivable ' cnn.am nhoit c- - Inventory → xem ✗et inventory d-Ébt d? hhoindng thanh todnnhdnh wid DN  pnéngngiiarui re / giuttién - he t.ae rod ? LN Én chipwi a' hot 1- opportunities cost qtro.nghhineinhte.CN a. ng thou thou Anh thanh Uh coin via → say. iiéndé dy tri ' coiclo.aitsa.use- uhéhhan sé doing Chi troi con hot ' → , Income statement Revenue - Total expenses F- BIT 1 operating income ) Interest ↑ shield - → Tax - F- BT I EBT I ↓ - Taxes = t ✗ F- AT 1 Net income I  " y selling , General l Administrative F- xp 2003 2004 1600 1660 Current A / Current L Current ratio = 3,2 = 3,02 500 550 1600-5 1660-550=2,02 ( current A- Inventories ) / Current Quick ratio = 2,2 500 55C b- do 450 Cash and cash equivalent / Current L Cash ratio = 1 = 018 500 gig , '349+151 F- BIT IBT Interest 2000 -500 Revenue Exp / interest expense Interest average + - = = Or 151 151 Interest exp Interest expense ratio = 9,93  3. 2. 3. Activity ratios measures how effectively the firm is managing its assets A low → The higher the ratio the better inventory turnover sign of [ excessive weak sales (.. inventory overstocking - retail chain 's merchandising strategy Chien hide g. him hang  → hhoinang thanh uhooin via hang +En Uno sémdtbnhiéungay drift hang ' → 1 DN d-é bain séngay hang En + une tha'p thi téi hah ing vén ' → DM cé the xoay nhanh heh 36-0 , Thieu 1 Slide : Receivable = Receivable turnover ~ turnover in days Although too high an average collection period is usually bad. a very low average period may not necessarily good be very. A low average collection period may be a symptom of a restricsirekhoanphouthnphy-cnhiaocmnhsac.tn credit policy that is excessively tin dying  1000 Inventory turnover = 1500+550,12 = 119 " Inventory turnover in days = 3g = 189,47 3000 3000 Receivable turnover = : 4,76 ; Fixed Asset Turnover = ? ' ° " 1600+660112 00+12501 7516 Receivable turnover in days = 43¥ = 3. 2. 4. Profitability ratios → oét moi d- Ing Deann thou thi cé bnh % d- Éng IN → Ging coo coingtéi  → Khoi noting t.ae ra lot nhuo.in treating tou sain a' 1h d-én ah ' Apic truing ngoinh cé the guy mi tous → VD : ng-anhvlxd.quymitaisanldnhdnng-anhthv.it phéim → investor quantum > → doin h cha cé d- ing thing