... Stockholders 36
Financial Highlights 38
Management’s Discussion and Analysis 38
Financial Statements 40
Income Statement 40
Balance Sheet 41
Cash Flow Statement 41
Notes to Consolidated Statements ... financial statements are prepared. U.S.
companies are required to file quarterly and annual reports.
Periodicity
Financial statements show only measurable activities of a
company. Financial statements ... U.S. financial statements are
reported in U.S. dollars (Exhibit 2.2); European financial statements now use the
euro as a standard monetary unit.
14 Basic Accounting Principles
CONSOLIDATED STATEMENT...
... Terms
ã Financialanalysis
ã Horizontal financial statements analysis
ã Vertical financial statements analysis
ã Cross sectional financialstatementanalysis
Introduction
Financial analysis: ... Ashfaq | FinancialStatementAnalysis 12
FinancialAnalysis revised
Page 8 of 54 pages. Chapter: 17: Module 3.4: Sensitivity Analysis of ICT Invest
Session 1: Building a FinancialAnalysis ... model.
Sensitivity analysis is also referred to as “what if analysis
Building FinancialAnalysis Model
Several activities can be considered in building financialanalysis model. In the
building of the financial...
... auditing needed to form an opinion about a client’s financial
statements
OVERVIEW OF FINANCIALSTATEMENT ANALYSIS
We view effective financialstatementanalysis as a three-legged stool, as Exhibit 1.1 ... iv
About the Authors xvii
Chapter 1 Overview of Financial Reporting, FinancialStatement
Analysis, and Valuation 1
Overview of FinancialStatementAnalysis 2
Step 1: Identify the Industry Economic ... Wall Street and around the world
for financialstatementanalysis and valuation.
Given the profound importance of financial reporting, financialstatement analysis, and
valu ation, and given...
... Blocks for FinancialStatementAnalysis
Financial Statement Analysis
Economics
Financial Statements
Strategy
EXHIBIT 1.2
The Six Interrelated Sequential Steps in FinancialStatement Analysis
1. ... iv
About the Authors xvii
Chapter 1 Overview of Financial Reporting, FinancialStatement
Analysis, and Valuation 1
Overview of FinancialStatementAnalysis 2
Step 1: Identify the Industry Economic ... such differences in financial statement
analysis. End-of-chapter materials contain many problems and cases involving non-
U.S. companies, with application of financialstatementanalysis techniques...
... S. Penman. (2001). ‘‘Ratio Analysis and Equity Valuation: From Research to Practice.’’
Review of Accounting Studies 6, 109–154.
Penman, S. (2004). FinancialStatementAnalysis and Security Valuation ... rates of return and
price-to-book ratios.
FINANCIAL STATEMENTANALYSIS OF LEVERAGE 547
Operating assets Total assets (Compustat #6) minus financial assets.
Financial liabilities Debt in current liabilities ... on net operating assets as defined
in (5). FLEV in financing leverage as defined in (9).
FINANCIAL STATEMENTANALYSIS OF LEVERAGE 543
Estimated operating liabilities Operating liabilities minus...
... 15,000
India 7.6 1,500
Viet Nam 5.9 1,000
Taiwan 5.1 2,500
24
Analysis of Short Term Financial Position or Test of Liquidity:
Ratio Analysis
Liquidity Profitability Ratio
Ratio
Efficiency Ratio
Trade ... period is just two months it is
very difficult to get clear picture.
ã Analysis is based on ratio and other financial statements calculated and
hence the subjective matter of the company must ... payable
Short-term advances
74
LIMITATIONS
The present study in carried out basing on the financial statements provided
by the form for last five years of the firm.
ã Since it is a large organization...
... Loss Statement and the Cash Flow Statement dealt with by this
report are in agreement with the books of account and the Balance
Sheet, the Profit and Loss Statement and the Cash Flow Statement ... at 2.3 are favourable.
4. Government
They will consider:
Liquidity Ratio
FINANCIAL
STATEMENT
ANALYSIS
Section B
Ruchika Sharma (112)
S. Priya
share (200%) on share ...
Industry: Automobile
Companies taken: Tata Motors & Maruti Suzuki
Financial Analysis
Liquidity Ratios
Tata(in Cr Rs)
Maruti(in Cr Rs.)
Mar'12
Mar'11...
...
105
CHAPTER 4 FinancialStatement
Analysis Tools
In previous chapters we have seen how the firm’s basic financial statements are constructed.
In this chapter we will see how financial analysts ... Equity
=
Return on Common Equity
44.22 0–
685.99
6 . 4 5 %==
CHAPTER 4: FinancialStatementAnalysis Tools
122
Du Pont Analysis
The return on equity (ROE) is important to both managers and investors. ... Ratio Analysis
Ratio analysis is as much art as science, and different analysts are likely to render somewhat
different judgements on a firm. Nonetheless, you can have Excel do a rudimentary analysis
for...
... take.
3. A useful tool in financialstatementanalysis is the common-size financial statement. What
does this tool enable the financial analyst to do?
a. Evaluate financial statements of companies ... PHILIPPINES
Manila
MANAGEMENT ADVISORY SERVICES
FINANCIAL STATEMENT ANALYSIS
THEORY
1. When a balance sheet amount is related to an income statement amount in computing a ratio,
a. The income statement amount should ... then
leverage is positive, and the common stockholders will benefit.
c. The results of financial statements analysis are of value only when viewed in comparison
with the results of other periods...
... key factors not found in the financial statements in order to highlight
their shortcomings:
example,
return on
capital).
ã Key
factors not
in
financial
statement
s: market
pricing
trends ... key principle as far as financial statements are concerned is that it is important
to see conservative reporting practices. In regard to the two most popular financial statements, conservatism ... a specific format for the income statement. As of May 2004, FASB
has already spent over two years on a project that will impact the presentation of the income statement, and
they are not expected...
... Sheet
ã Trend Analysis
ã Graphical representation of ratio
ã Comments on Trend analysis
ã Common Size Analysis
ã Comments on common size analysis
ã Index Size Analysis
ã Comments on index analysis
... 2005
Years
Percentage
ROE
ROA / ROI
Net Profit
Margin
Operating Profit
Margin
Gross Profit
Margin
Preface
Title:
Financial StatementAnalysis of MSC Textile mills (Pvt.) Ltd.
Objectives:
ã To furnish information for making ...
company create greater profit and market share.
Company financial coverage is also better and company enjoys
better investment and more good financial position. Company’s
profit is also stable...
... published financial data. (Encarta, 2007)
19
Financial Statement Analysis: A Tool for Performance Evaluation
2.8 LIMITATIONS OF FINANCIALSTATEMENT ANALYSIS
Although financialstatementanalysis ... TECHNIQUES OF FINANCIALSTATEMENT ANALYSIS
Following are the most important tools and techniques of financialstatement
analysis (Remi A. 2006):
1. Horizontal and Vertical Analysis
2. Ratios Analysis ... chosen for
analysis.
3.3 Method of Data Analysis
The analysis of the data is based on the following methods or approaches of
financial statement analysis:
1. Trend analysis
2. Ratio analysis...
... 19
Financial Statement Analysis: A Tool for Performance Evaluation
2.8 LIMITATIONS OF FINANCIALSTATEMENT ANALYSIS
Although financialstatementanalysis is highly useful ... over the period of time through
financial statements analysis.
2
Financial Statement Analysis: A Tool for Performance Evaluation
Jan. 2010
14
Financial Statement Analysis: A Tool for Performance ... chosen for
analysis.
3.3 Method of Data Analysis
The analysis of the data is based on the following methods or approaches of
financial statement analysis:
1. Trend analysis
2. Ratio analysis...
... If you were analyzing Mondavi, you could spend your
time focusing on other aspects of its financial statements.
On the other hand, enterprise software companies such as Oracle or PeopleSoft ... increase)
(3) Plus the increase in cash advances from customers
(or minus the decrease)
Financial Statements: Conclusion
Let's summarize the ideas discussed throughout this tutorial according ... is hardly exhaustive. Also, in a few cases, the table gives key factors not
found in the financial statements in order to highlight their shortcomings:
Selected
Industries:
Nature of Business...
... of the financial position of a business.
FINANCIAL STATEMENT ANALYSIS:
The significance of financialstatement lies not in their preparation but in
their analysis and interpretation. Analysis ...
0
10
20
30
40
50
8
45
I i
W l
22
COMPARATI
E STATEMENTS
Comparative financialstatement refer to comparison of financial statements.
Pertaining to two different periods by putting ...
ensure uniformity.
4. It is preferable to present financial information in "Vertical or Statement& quot;
form.
5. The Comparative financialstatement must reveal changes in both 'absolute'...