Winning Business - How to Use Financial Analysis and Benchma 1999 docx

[...]... Columbia/HCA Healthcare Manpower McGraw Hill 1 2-3 1-9 7 1-3 1-9 8 1 2-3 1-9 7 6-3 0-9 8 1 1-3 0-9 7 1 2-3 1-9 7 1 2-3 1-9 7 1 2-3 1-9 7 Financial Micro to small cap Reporting Date Toro Bed Bath & Beyond Applebee’s Int’l Cypress Semiconductor Franklin Resources Novacare Air & Water Technologies Scholastic 1 0-3 1-9 7 2-2 8-9 8 1 2-2 8-9 7 1 2-2 9-9 7 9-3 0-9 7 6-3 0-9 7 1 0-3 1-9 7 5-3 1-9 8 Financial Reporting Date Encad TCBY Enterprises... Home Health Care Market Facts Thomas Nelson 1 2-3 1-9 7 1 1-3 0-9 7 9-3 0-9 7 1 2-3 1-9 7 9-2 7-9 7 9-3 1-9 7 1 2-3 1-9 7 3-3 1-9 8 xiii Table 2 Sales levels of benchmark companies at the listed reporting period Sector Mid to large cap Manufacturing Retail Food Technology Finance Healthcare Service Media/Publishing General Motors Wal-Mart Stores McDonald’s Microsoft Morgan-Stanley Dean Witter Columbia/HCA Healthcare Manpower... support and love of my wonderful wife, Tammy, and our great kids, Sean and Tara xii Introduction Winning Business and its interactive CD-ROM can help business managers, investors, small business owners, and students better understand, monitor, and improve company performance Successful business people use indicators to monitor conditions such as return on assets, liquidity, profitability, and growth... sheet, and total liabilities and owner’s equity in the liabilities and owner’s equity section of the balance sheet The word vertical is used to describe this analysis method because the method generates a vertical column of ratios next to the individual items on the financial statements When to use indicator: You can use vertical analysis to compare trends in the relative performance of any financial. .. materials Direct labor Overhead Total 4 FINANCIAL STATEMENT ANALYSIS METHODS 4 Studying Ratio Analysis When to use indicator: Managers and investors can use ratio analysis to understand the health of a company Ratios lend insight into many critical aspects such as present and future profit potential, expense control, and solvency For example, the ratio of net income to net sales gives substantially... of useful ratios such as inventory turnover and inventory to sales These ratios will help you understand and improve company performance in that area After determining the size of these ratios, you can use the benchmark table to see how your company stacks up against others in a variety of industries The tips offer potential causes, outcomes, and suggestions for the improvement of high and low inventory... performance over time and to compare one financial indicator to another to gain improved insight regarding company performance 1 FINANCIAL STATEMENT ANALYSIS METHODS 1 Using Vertical Analysis to Analyze Financial Statements Vertical analysis is a method of analyzing financial statements in which you can compare individual line items to a baseline item such as net sales from the income statement, total assets... Table 1 shows financial information reporting dates and Table 2 shows corresponding sales levels for that reporting period Table 1 Benchmark companies with financial information reporting dates Sector Mid to large cap Financial Small to mid cap Reporting Date Manufacturing Retail Food Technology Finance Healthcare Service Media/Publishing General Motors Wal-Mart Stores McDonald’s Microsoft Morgan-Stanley... product service demand types, investment and loan interest rate information, leverage, inventory, assets, debt, equity, and external indicators Each tip presents a ratio to help you understand, monitor, and when applicable, improve company performance in the area of concern You will also find an example with each tip to show you how to calculate the ratio All examples are based on the financial statements... compares individual line items to their historical values The word horizontal is used to describe this analysis method because the method generates horizontal rows of data When to use indicator: You can use this method to compare trends over time of any financial statement line items For example, managers often want to track changes on the income statement in net sales and net income over time If, in . Nelson 1 2-3 1-9 7 1-3 1-9 8 1 2-3 1-9 7 6-3 0-9 8 1 1-3 0-9 7 1 2-3 1-9 7 1 2-3 1-9 7 1 2-3 1-9 7 1 0-3 1-9 7 2-2 8-9 8 1 2-2 8-9 7 1 2-2 9-9 7 9-3 0-9 7 6-3 0-9 7 1 0-3 1-9 7 5-3 1-9 8 1 2-3 1-9 7 1 1-3 0-9 7 9-3 0-9 7 1 2-3 1-9 7 9-2 7-9 7 9-3 1-9 7 1 2-3 1-9 7 3-3 1-9 8 Introduction xiv Sector. help business managers, investors, small business owners, and stu- dents better understand, monitor, and improve company per- formance. Successful business people use indicators to moni- tor conditions such. ᮀ Houston, Texas 7725 2-2 608 10 9 8 7 6 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Gildersleeve, Rich. Winning business : how to use financial analysis and bench- marks to outscore