Chapter 3
①The balance sheet ②The income statement
③The statement of cash flows ④tax
①The balance sheet
Equation: total assets=total liabilities + shareholders? equity
Net working capital(NWC)=current asset – current liabilities是指企业的流动资产总额减去各类流动负债后的余额。即通过长期负债融资而购买的流动资产的数额。 Balance sheet
Current Assets Current Liabilities
? Cash & Securities payables
? Receivables short-term debt ? Inventories +
+ long-term liabilities Fixed Assets +
? Tangible Assets shareholders’ equity ? Intangible Assets
Book value& market value
②the income statement
The income statement
Sales revenue $135,000 Less: cost of sales 108,000 Gross profits 27,000 Less: Operating expenses 13,500 Operating profits 13,500 Less: Financing expense 1,350 Net profits before taxes 12,150 Less: Taxes (15%) 1,823 Net profits after taxes $10,327
In the income statement below, what was the value of Home Depot’s EBIT in 2009?
EBIT = total Revenues － costs －deprecation
③the statement of cash flows
Example:
Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000.
What was the total cash flow from operations for the period? Net income: 10,000 Depreciation: 2,500 Accounts Receivable: (1,250) Accounts Payable: 800 Inventories: (2,000) Cash flow from operations: 10,050
Free Cash Flow
? Free Cash Flow is cash available for distribution to investors after the firm pays for new
investments or additions to working capital.
Free cash flow = (EBIT – taxes + dep.) - change in net working capital- cap. expenditures
④tax: 1.corporate tax 2.personal tax 一,marginal tax rate 二,average tax rate
Chapter4
Mua Eva
Book rate of ruturn
Financial ratio (财务比率) and shareholders’ value
The Dupont system
Market value added(MVA) Market Value Added ? [Share Price ? Shares Outstanding] - Equity Book Value
Market capitalization(市值): Total market value of equity. (share market price x shares outstanding)
Market value added: Market capitalization minus book value of equty. Market-to-book ratio=
market...value...of...equity
book...value...of....equity
Economic Value Added(EVA) Economic Value Added ? Operating Income* - [Cost of Capital?Total Capitalization] Total capitalization: long-term debt + equity
After tax operating income = after-tax interest + net income EVA :Show the firm?s truly created value income earned – income required
Book Rates of Return
return on capital(ROC)资本收益率
ROC=after-tax operating income/total capitalization
ROC=after-tax operating income/average total capitalization
Return on asset(ROA)资产收益率
ROA=after-tax operating income/total assets
ROA=after-tax operating income/average total assets Return on equity(ROE)股本回报率，产权回报率 ROE=net income/equity
After tax operating income = after-tax interest + net income (因为是operating income 在上章可知operating income是financial expenses之前的，故还未减去interest，故要加after-tax
interset)
PPT中关于ROA，ROC，ROE的练习
Financial ratios and shareholders’ value
Shareholder value depends on good investment and financing decisions. Financial Ratios help measure the success and soundness of these decisions Efficiency Ratios Asset turnover ratio=sales/total assets at start of year Or=sales/average total assets
Receivables turnover=sales/receivables at start of year
Average collection period=receivables at start of year/average daily sales =365/receivable turnover
Inventory turnover ratio=cost of goods sold/inventory at start of year
Average days in inventory=inventory at start of year/daily cost of goods sold =365/inventory turnover Profitability Ratios Profit margin(利润率)=net income/sales
(IOPM)Operating profit margin=net income +after-tax interest/sales =after-tax operating income/sales Leverage Ratios杠杆率(debt and equity) Long-term debt ratio=long-term debt/long-term debt+equity Long-term debt equity ratio=long-term debt/equity
Measuring Leverage Total debt ratio=total liability/total assets
Times interest earned（利息保障率,利息保障倍数）=EBIT/interest payments用于衡量偿付贷款利息的能力 Cash coverage ratio（现金涵盖比率）=EBIT+depreciation/interest payments Liquidity Ratios(短期还债能力指标/流动性指标) NWC to total assets ratio(经营运资金比)=net working capital/total assets
(Net working capital=current asset – current liabilities)
Current ratio(流动比率)=current assets/current liabilities(短期还债能力的一个指标)
Quick ratio(速动比率)=cash + marketable securities(有价证券) + receivables/current liabilities
Cash ratio(现金比率)=cash + marketable securities/current liabilities
The Dupont system
? The Du Pont System is a process of analyzing component ratios (also called decomposition) of the ROA and ROE to explain their level or changes. ROA= after-tax operating income/asset
=
salesafter?tax..operating..incomex
assetssales=assets turnover x operating profit margin
ROE=
=leverage ratio x asset turnover x operating profit margin x debt burden
Sustainable Growth DividendsEarnings-Dividends
Payout Ratio=Plowback Ratio=EarningsEarnings
股息支付率 再投资率 Growth in equity from plowback = Plowback Ratio ? ROEOr call sustainable growth rate
Earnings - DividendsEarnings ??
EarningsEquity
Earnings-Dividends = Equity
AssetsSalesNet Income ? InterestNet IncomexxxEquityAssetsSalesNet Income ? InterestChapter 5 Future value Present value
Pv of multiple cash flows Perpetuities Annutities
Future value of annutities Annuities and annuities due EAR & APR