# Is Apple overvalued? An Introduction to Financial Analysis

Size: px
Start display at page:

Transcription

2 Average collection period Inventory turnover 46 days 83X? 19.89X The second aspect of liquidity, the size of noncash assets relative to current liabilities is measured by the current ratio (higher = more liquidity). Current ratio Are managers creating adequate profits on the firm s assets? The operating return on assets (operating profits/total assets) is determined by the effectiveness with which the firm creates sales out of its assets (sales/total assets) and its management of operations, i.e. how much remains of the sales as operating profit (operating profits/sales). You can say for all three ratios: the higher the better. Operating Return on Assets (OROA) Operating profit margin Total asset turnover 29% 31.2% 0.93X 8.04% 7.35% 1.75X Operating Return on Assets (OROA) = Operating profit margin X Total asset turnover 3. How is the firm financing its assets? To describe how the firm s assets are financed, we usually calculate the debt ratio. Banks and other lenders want to know, whether the firm is likely to make its interest payments. To answer this question we can use the times interest earned ratio. Debt Ratio Times interest earned? 3.8 Note that interests are paid with cash, not earnings. The times interest earned ratio is only some crude measure.

3 4. Are the firm s managers providing a good return on the capital provided by the company s stockholders? Usually we determine the accounting return on the common stockholder s investment, if we want to answer this question Return on equity (ROE) 33.8% 15% The higher the OROA, the higher ROE. Note that you can easily increase the ROE, by using more debt (leverage effect). 5. Are the firm s managers creating shareholder value? One way to answer this question is to use market value ratios. The price/earnings ratio indicates, how much the investors are willing to pay for 1 \$ of reported earnings. If this ratio is very high, investors either expect the company to grow or perceive their expected profits less risky. The price/book ratio is the relation between the market value of the firm and its value as reported in its balance sheet. If this ratio is greater than 1, the firm has created shareholder value. If it is less than 1, the firm destroyed shareholder value. P/E Price/book ratio now now Industry Norm 2.08 Conclusion has an average liquidity. Its long average collection period is outweighed by its high inventory turnover and its above-average current ratio. Although s asset efficiency is not so good, its OROA is outstanding, due to its outstanding operating profit margin. This high operating profit margin may either result from high mark-ups in product prices or very good management of operations. The high OROA enables to have a high return on equity although its debt ratio is low. The leverage effect is not working here, which means that s ROE is even less risky than that of its competitors. The fact that Investors are willing to pay more for 1\$ book value in than for 1\$ in other firms may result from the fact that a dollar of s book value just yields a higher return than the equity of other firms. The P/E ratio is close to the industry norm and remained almost constant over time, since earnings had been growing a lot while the price per share increased. The lower riskiness of apples earnings due to its lower debt ratio may justify a higher P/E and thus an even higher stock price. The same would be true if apple had some more growth potential. You can infer from these numbers that apple is an as good investment now as it was a year ago. We cannot speak of an overvaluation. s stock price just kept up with its financial performance.

4 Income Statement Period Ending Sep 23, 2011 Sep 24, 2010 Sep 25, 2009 Total Revenue 108,249,000 65,225,000 42,905,000 Cost of Revenue 64,431,000 39,541,000 25,683,000 Gross Profit 43,818,000 25,684,000 17,222,000 Operating Expenses Research Development 2,429,000 1,782,000 1,333,000 Selling General and Administrative 7,599,000 5,517,000 4,149,000 Non Recurring Others Total Operating Expenses Operating Income or Loss 33,790,000 18,385,000 11,740,000 Income from Continuing Operations Total Other Income/Expenses Net 415, , ,000 Earnings Before Interest And Taxes 34,205,000 18,540,000 12,066,000 Interest Expense Income Before Tax 34,205,000 18,540,000 12,066,000 Income Tax Expense 8,283,000 4,527,000 3,831,000 Minority Interest Net Income From Continuing Ops 25,922,000 14,013,000 8,235,000 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income 25,922,000 14,013,000 8,235,000 Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 25,922,000 14,013,000 8,235,000

5 Balance Sheet Period Ending Sep 23, 2011 Sep 24, 2010 Sep 25, 2009 Assets Current Assets Cash And Cash Equivalents 9,815,000 11,261,000 5,263,000 Short Term Investments 16,137,000 14,359,000 18,201,000 Net Receivables 13,731,000 11,560,000 6,192,000 Inventory 776,000 1,051, ,000 Other Current Assets 4,529,000 3,447,000 1,444,000 Total Current Assets 44,988,000 41,678,000 31,555,000 Long Term Investments 55,618,000 25,391,000 10,528,000 Property Plant and Equipment 7,777,000 4,768,000 2,954,000 Goodwill 896, , ,000 Intangible Assets 3,536, , ,000 Accumulated Amortization Other Assets 3,556,000 2,263,000 2,011,000 Deferred Long Term Asset Charges - - 1,727,000 Total Assets 116,371,000 75,183,000 47,501,000 Liabilities Current Liabilities Accounts Payable 23,879,000 17,738,000 9,453,000 Short/Current Long Term Debt Other Current Liabilities 4,091,000 2,984,000 2,053,000 Total Current Liabilities 27,970,000 20,722,000 11,506,000 Long Term Debt Other Liabilities 10,100,000 5,531,000 3,502,000 Deferred Long Term Liability Charges 1,686,000 1,139, ,000 Minority Interest Negative Goodwill Total Liabilities 39,756,000 27,392,000 15,861,000 Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock 13,331,000 10,668,000 8,210,000 Retained Earnings 62,841,000 37,169,000 23,353,000 Treasury Stock Capital Surplus - - -

6 Other Stockholder Equity 443,000 (46,000) 77,000 Total Stockholder Equity 76,615,000 47,791,000 31,640,000 Net Tangible Assets 72,183,000 46,708,000 31,187,000 Financials (yahoo finance, ) P/E: Price/book: 5.28 Number of shares outstanding (Sept 2011) 925M

### ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

### Chapter 17: Financial Statement Analysis

FIN 301 Class Notes Chapter 17: Financial Statement Analysis INTRODUCTION Financial ratio: is a relationship between different accounting items that tells something about the firm s activities. Purpose

### TYPES OF FINANCIAL RATIOS

TYPES OF FINANCIAL RATIOS In the previous articles we discussed how to invest in the stock market and unit trusts. When investing in the stock market an investor should have a clear understanding about

### Financial Formulas. 5/2000 Chapter 3 Financial Formulas i

Financial Formulas 3 Financial Formulas i In this chapter 1 Formulas Used in Financial Calculations 1 Statements of Changes in Financial Position (Total \$) 1 Cash Flow (\$ millions) 1 Statements of Changes

### How To Calculate Financial Leverage Ratio

What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK

### Income Measurement and Profitability Analysis

PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance

### Chapter 14 Financial Ratios and Firm Performance

Chapter 14 Financial Ratios and Firm Performance LEARNING OBJECTIVES 1. Create, understand, and interpret common-size financial statements. 2. Calculate and interpret financial ratios. (Slide 14-2) 3.

### EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) TABLE 1 Quarter Ended March 31, Percent Change Net Sales \$ 5,854 \$ 5,919 1% Costs and expenses: Cost of sales 3,548 3,583

### Glossary and Formulas

A-B Accounts Payable Includes, but is not limited to, Trade Accounts Payable and Trade Acceptances, that is, amounts owed to vendors for goods and services purchased from outside suppliers and due within

### HHIF Lecture Series: Financial Statement Analysis

HHIF Lecture Series: Financial Statement Analysis Alexander Remorov Based on the Materials by Daanish Afzal University of Toronto November 5, 2010 Alexander Remorov, Daanish Afzal (University of Toronto)

### Financial Statement Analysis Paper

Financial Statement Analysis Paper Example 1: Dell Computer Dell Inc. Current Year Prior Year Income Statement 3 Years Ago \$ Percent \$ Percent \$ Percent Revenue 61,494 100.0% 52,902 100.0% 61,101 100.0%

### ! "#\$ %&!& "& ' - 3+4 &*!&-.,,5///2!(.//+ & \$!- )!* & % +, -).//0)& 7+00///2 *&&.4 &*!&- 7.00///2 )!*.//+ 8 -!% %& "#\$ ) &!&.

! "#!""#\$%\$#\$#\$"& \$'"()*+,\$-).,/ 012! "#\$ %&!& "& '!(&)!*&%+,-).//0 -#\$#3-4' &,'1\$1# \$!-!(.//0)& +01+///2 *&& - 3+4 &*!&-.,,5///2!(.//+ &!(!-6%(!(.//.\$(!(.//0)& 01,///2 //+2% &*!&- 5,0///2 //32%!(.//+

### Financial Statements and Ratios: Notes

Financial Statements and Ratios: Notes 1. Uses of the income statement for evaluation Investors use the income statement to help judge their return on investment and creditors (lenders) use it to help

Ratio Analysis CBDC, NB February, 2008 Presented by ACSBE Financial Analysis What is Financial Analysis? What Can Financial Ratios Tell? 7 Categories of Financial Ratios Significance of Using Ratios Industry

### Oklahoma State University Spears School of Business. Financial Statements

Oklahoma State University Spears School of Business Financial Statements Slide 2 Sources of Information Annual reports (10K) & Quarterly reports (10Q) SEC EDGAR Major databases COMPUSTAT(access through

### For the three months ended March 31, 2001 2000. Net sales \$ 1,921 \$ 1,351 Cost of sales 1,112 788. Gross margin 809 563

Pro Forma Consolidated Statements of Income Excluding Amortization of Purchased Intangibles and Goodwill, Purchased In-Process Research and Development, Acquisition-Related Costs and Non-Recurring Items

### EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) Recurring revenues \$ 314,727 \$ 282,117 \$ 216,517 \$ 834,080 \$ 610,384 Non-recurring revenues 15,620

### FINANCIAL ACCOUNTING TOPIC: FINANCIAL ANALYSIS

SYLLABUS Compulsory part Basic ratio analysis 1. State the general functions of accounting ratios. 2. Calculate and interpret the following ratios: a. working capital/current ratio, quick/liquid/acid test

### Financial ratio analysis

Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction 2. Liquidity ratios 3. Profitability ratios and activity ratios 4. Financial leverage ratios 5. Shareholder

### Consolidated balance sheet

Consolidated balance sheet Non current assets 31/12/2009 31/12/2008 (*) 01/01/2008 (*) Property, plant and equipment 1,352 1,350 1,144 Investment property 7 11 11 Fixed assets held under concessions 13,089

### Return on Equity has three ratio components. The three ratios that make up Return on Equity are:

Evaluating Financial Performance Chapter 1 Return on Equity Why Use Ratios? It has been said that you must measure what you expect to manage and accomplish. Without measurement, you have no reference to

### Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements

Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements In the United States, businesses generally present financial information in the form of financial statements

### Bank & Financial Institution Modeling Quick Reference Projecting Financial Statements for a Bank. http://breakingintowallstreet.

Commercial Bank Balance Sheet: Assets: + Cash & Deposits with Banks + Federal Funds Sold + Securities and/or Securities Borrowed + Trading Assets + Gross Loans Allowance for Loan Losses = Net Loans + Accrued

### performance of a company?

How to deal with questions on assessing the performance of a company? (Relevant to ATE Paper 7 Advanced Accounting) Dr. M H Ho This article provides guidance for candidates in dealing with examination

### Financial Statement and Cash Flow Analysis

Chapter 2 Financial Statement and Cash Flow Analysis Answers to Concept Review Questions 1. What role do the FASB and SEC play with regard to GAAP? The FASB is a nongovernmental, professional standards

### Financial Results. siemens.com

s Financial Results Fourth Quarter and Fiscal 2015 siemens.com Key figures (in millions of, except where otherwise stated) Volume Q4 % Change Fiscal Year % Change FY 2015 FY 2014 Actual Comp. 1 2015 2014

### John A. Jaeger, CCE Manager Credit & Accounts Receivable Follett Higher Education Group. Extend Credit Management Financial Analyst Investor

John A. Jaeger, CCE Manager Credit & Accounts Receivable Follett Higher Education Group Extend Credit Management Financial Analyst Investor Establish the Objectives Study the Industry and Economic Climate

### EQUITY RESEARCH. S&P Sector Information Technology Industry Software/Computer Services. (Million) (Billion) Bloomberg Yield Forward

M.A. W M.A. WRIGHT FUND EQUITY RESEARCH Robert J. Schafer Siebel Systems Inc. NYSE: SEBL Buy schafrob@rice.edu March 05, 2002 MARKET DATA Price 3-05- 02 Close \$32.94 52-Wk Range Low Mid- Sept. 12.24 to

### Chapters 3 and 13 Financial Statement and Cash Flow Analysis

Chapters 3 and 13 Financial Statement and Cash Flow Analysis Balance Sheet Assets Cash Inventory Accounts Receivable Property Plant Equipment Total Assets Liabilities and Shareholder s Equity Accounts

### Financial Ratios and Quality Indicators

Financial Ratios and Quality Indicators From U.S. Small Business Administration Online Women's Business Center If you monitor the ratios on a regular basis you'll gain insight into how effectively you

### FINANCIAL MANAGEMENT

100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com

### Cash is King. cash flow is less likely to be affected

Reading 27: Understanding Cash Flow Statements Relevance of Cash Flow The primary purpose of the statement of cash flows (SCF) is to provide: Info about a firm s cash receipts & cash payments during an

### In this chapter, we build on the basic knowledge of how businesses

03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize

### Atthapol Charoenkietkrai ACG2021 Section 2

Atthapol Charoenkietkrai ACG2021 Section 2 Amazon has been in a good position for the last few years and still on a rise. The assets have increased, and the debt has decreased. The company has exponentially

### Report Description. Business Counts. Top 10 States (by Business Counts) Page 1 of 16

5-Year County-Level Financial Profile Industry Report Architectural Services (SIC Code: 8712) in Prince George County, Maryland Sales Range: \$500,000 - \$999,999 Date: 11/07/08 Report Description This 5-Year

### Consolidated Balance Sheets

Consolidated Balance Sheets March 31 2015 2014 2015 Assets: Current assets Cash and cash equivalents 726,888 604,571 \$ 6,057,400 Marketable securities 19,033 16,635 158,608 Notes and accounts receivable:

### STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

### As of December 31, 2014. As of December 31, 2015. Assets Current assets:

Assets Current assets: Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of December 31, 2014

### Consolidated balance sheet

83 Consolidated balance sheet December 31 Non-current assets Goodwill 14 675.1 978.4 Other intangible assets 14 317.4 303.8 Property, plant, and equipment 15 530.7 492.0 Investment in associates 16 2.5

### Fundamental Analysis Ratios

Fundamental Analysis Ratios Fundamental analysis ratios are used to both measure the performance of a company relative to other companies in the same market sector and to value a company. There are three

### Accounting Principles Critical to Success Presented By: C. P. Krishnan. www.cakintl.com

Accounting Principles Critical to Success Presented By: C. P. Krishnan Basic Accounting You Need to Know Assets, Liabilities, Equity, Income, & Expenses Assets Includes what you have and what people owe

### ACER INCORPORATED AND SUBSIDIARIES. Consolidated Balance Sheets

Consolidated Balance Sheets June 30, 2015, December 31, 2014, and (June 30, 2015 and 2014 are reviewed, not audited) Assets 2015.6.30 2014.12.31 2014.6.30 Current assets: Cash and cash equivalents \$ 36,400,657

### Prospect Capital Corporation (NASDAQ: PSEC)

Analyst Rating About Prospect Capital Corporation Prospect Capital Corporation (Prospect Capital) is a financial services company that lends to and invests in middle market privately-held companies. The

### Solutions to Chapter 4. Measuring Corporate Performance

Solutions to Chapter 4 Measuring Corporate Performance 1. a. 7,018 Long-term debt ratio 0. 42 7,018 9,724 b. 4,794 7,018 6,178 Total debt ratio 0. 65 27,714 c. 2,566 Times interest earned 3. 75 685 d.

### E5-4 Assessing receivable and inventory turnover (AICPA adapted)

E5-4 Assessing receivable and inventory turnover (AICPA adapted) Accounts receivable turnover Net credit sales = Average trade receivables = \$2,500,000 \$462,500 = 5.41 times where average trade receivables

### Consolidated Financial Summary For the third quarter of the fiscal year ending March 31, 2009

Monex Group, Inc. Consolidated Financial Summary under Japanese GAAP for the third quarter of the fiscal year ending March 31, 2009 (April 1, 2008-December 31, 2008) This is an English translation of Japanese

### November 4, 2015 Consolidated Financial Results for the Second Quarter of Fiscal Year 2015 (From April 1, 2015 to September 30, 2015) [Japan GAAP]

November 4, 2015 Consolidated Financial Results for the Second Quarter of Fiscal Year 2015 (From April 1, 2015 to September 30, 2015) [Japan GAAP] Company Name: Idemitsu Kosan Co., Ltd. (URL http://www.idemitsu.com)

### Consolidated Financial Review for the First Quarter Ended June 30, 2004

Consolidated Financial Review for the First Quarter Ended August 9, 2004 Company Name: Head Office: Tokyo, Japan URL: Stock exchange listing: Tokyo Stock Exchange 1ST Section Code number: 6481 Representative:

### CHAPTER 2 ACCOUNTING STATEMENTS, TAXES, AND CASH FLOW

CHAPTER 2 ACCOUNTING STATEMENTS, TAXES, AND CASH FLOW Answers to Concepts Review and Critical Thinking Questions 1. True. Every asset can be converted to cash at some price. However, when we are referring

### TIME WARNER CABLE INC. CONSOLIDATED BALANCE SHEET (Unaudited)

CONSOLIDATED BALANCE SHEET June 30, December 31, 2011 2010 (in millions) ASSETS Current assets: Cash and equivalents...\$ 3,510 \$ 3,047 Receivables, less allowances of \$86 million and \$74 million as of

### Course 1: Evaluating Financial Performance

Excellence in Financial Management Course 1: Evaluating Financial Performance Prepared by: Matt H. Evans, CPA, CMA, CFM This course provides a basic understanding of how to use ratio analysis for evaluating

### JOHN WILEY & SONS, INC. UNAUDITED SUMMARY OF OPERATIONS FOR THE FIRST QUARTER ENDED JULY 31, 2011 AND 2010 (in thousands, except per share amounts)

UNAUDITED SUMMARY OF OPERATIONS FOR THE FIRST QUARTER ENDED JULY 31, 2011 AND 2010 (in thousands, except per share amounts) US GAAP First Quarter Ended Revenue \$ 430,069 407,938 5% Costs and Expenses Cost

### Financial Statement Analysis: An Introduction

Financial Statement Analysis: An Introduction 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Scope of Financial Statement Analysis... 3 3. Major

### Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Chapter 3 Interpreting Financial Ratios Concept Check 3.1 1. What are the different motivations that

### Consolidated Financial Results for Fiscal Year 2013 (April 1, 2013 March 31, 2014)

Consolidated Financial Results for Fiscal Year 2013 (April 1, 2013 March 31, 2014) 28/4/2014 Name of registrant: ShinMaywa Industries, Ltd. Stock Exchange Listed: Tokyo Code number: 7224 (URL: http://www.shinmaywa.co.jp

### Preparing a Successful Financial Plan

Topic 9 Preparing a Successful Financial Plan LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Describe the overview of accounting methods; 2. Prepare the three major financial statements

### Income Statement (1) First Quarter 2002

Income Statement (1) (in millions of EUR) 1 st Q 2002 1 st Q 2001 2002/2001 Sales 5,402.2 4,993.6 +8.2% (2) EBITDA (FIFO) 408.7 366.1 +11.6% EBITDA margin 7.6% 7.3% - Depreciation (145.5) (134.6) +8.1%

### The Finance Toolkit Revised 2016 Prepared for the College of Business Community Northern Illinois University

The Finance Toolkit Revised 2016 Prepared for the College of Business Community Northern Illinois University By Dr. James M. Johnson, Ph.D. Presidential Professor of Finance Northern Illinois University

### Often stock is split to lower the price per share so it is more accessible to investors. The stock split is not taxable.

Reading: Chapter 8 Chapter 8. Stock: Introduction 1. Rights of stockholders 2. Cash dividends 3. Stock dividends 4. The stock split 5. Stock repurchases and liquidations 6. Preferred stock 7. Analysis

### Current Assets. Current Liabilities. Quick Assets or Liquid Assets. Current Liabilities. 1. Liquidity Ratios 1 Current Ratio Formula.

1. Liquidity Ratios 1 Current Ratio Current Assets Current Liabilities This ratio shows short-term financial soundness of the business. Higher ratio means better capacity to meet its current obligation.

### 140 SU 3: Profitability Analysis and Analytical Issues

140 SU 3: Profitability Analysis and Analytical Issues QUESTIONS 3.1 Profitability Ratios Questions 1 and 2 are based on the following information. The financial statements for Dividendosaurus, Inc., for

### Definitions of Terms

Definitions of Terms Operating and financial measures are utilized by T-Mobile's management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although

### Financial Analysis Project. Apple Inc.

MBA 606, Managerial Finance Spring 2008 Pfeiffer/Triangle Financial Analysis Project Apple Inc. Prepared by: Radoslav Petrov Course Instructor: Dr. Rosemary E. Minyard Submission Date: 5 May 2008 Petrov,

Module 2: Preparing for Capital Venture Financing Financial Forecasting Methods Module 2: Preparing for Capital Venture Financing Financial Forecasting Methods 1.0 FINANCIAL FORECASTING METHODS 1.01 Introduction

### Consolidated Financial Statements (For the fiscal year ended March 31, 2013)

Consolidated Financial Statements (For the fiscal year ended ) Consolidated Balance Sheets Current assets: Cash and deposits Other Assets Notes receivable, accounts receivable from completed construction

### SanDisk Corporation Preliminary Condensed Consolidated Statements of Operations (in thousands, except per share amounts, unaudited)

Preliminary Condensed Consolidated Statements of Operations (in thousands, except per share amounts, unaudited) Revenue \$ 1,634,011 \$ 1,476,263 \$ 3,145,956 \$ 2,816,992 Cost of revenue 854,640 789,614 1,595,679

### Financial Terms & Calculations

Financial Terms & Calculations So much about business and its management requires knowledge and information as to financial measurements. Unfortunately these key terms and ratios are often misunderstood

### Integrated Case. 4-25 D Leon Inc., Part II Financial Statement Analysis

Integrated Case 4-25 D Leon Inc., Part II Financial Statement Analysis Part I of this case, presented in Chapter 3, discussed the situation of D Leon Inc., a regional snack foods producer, after an expansion

### Credit Analysis 10-1

Credit Analysis 10-1 10-2 Liquidity and Working Capital Basics Liquidity - Ability to convert assets into cash or to obtain cash to meet short-term obligations. Short-term - Conventionally viewed as a

### Computing Liquidity Ratios Current Ratio = CA / CL 708 / 540 = 1.31 times Quick Ratio = (CA Inventory) / CL (708 422) / 540 =.53 times Cash Ratio =

1 Computing Liquidity Ratios Current Ratio = CA / CL 708 / 540 = 1.31 times Quick Ratio = (CA Inventory) / CL (708 422) / 540 =.53 times Cash Ratio = Cash / CL 98 / 540 =.18 times 2 Computing Leverage

### Financial Ratio Cheatsheet MyAccountingCourse.com PDF

Financial Ratio Cheatsheet MyAccountingCourse.com PDF Table of contents Liquidity Ratios Solvency Ratios Efficiency Ratios Profitability Ratios Market Prospect Ratios Coverage Ratios CPA Exam Ratios to

### Analyzing the Statement of Cash Flows

Analyzing the Statement of Cash Flows Operating Activities NACM Upstate New York Credit Conference 2015 By Ron Sereika, CCE,CEW NACM 1 Objectives of this Educational Session u Show how the statement of

### Performance Food Group Company Reports First-Quarter Fiscal 2016 Earnings

NEWS RELEASE For Immediate Release November 4, 2015 Investors: Michael D. Neese VP, Investor Relations (804) 287-8126 michael.neese@pfgc.com Media: Joe Vagi Manager, Corporate Communications (804) 484-7737

### FSA Note: Summary of Financial Ratio Calculations

FSA Note: Summary of Financial Ratio Calculations This note contains a summary of the more common financial statement ratios. A few points should be noted: Calculations vary in practice; consistency and

### Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

### Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE

Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE December 2013 Acknowledgments This guide and supporting tools were developed by Julie

### Overview of Business Results for the 2nd Quarter of Fiscal Year Ending March 31, 2012 (2Q FY2011)

November 8, 2011 Overview of Business Results for the 2nd Quarter of Fiscal Year Ending March 31, 2012 () Name of the company: Iwatani Corporation Share traded: TSE, OSE, and NSE first sections Company

### 3 Financial Analysis and Planning

3 Financial Analysis and Planning BASIC CONCEPTS AND FORMULAE 1. Financial Analysis and Planning Financial Analysis and Planning is carried out for the purpose of obtaining material and relevant information

### E2-2: Identifying Financing, Investing and Operating Transactions?

E2-2: Identifying Financing, Investing and Operating Transactions? Listed below are eight transactions. In each case, identify whether the transaction is an example of financing, investing or operating

### RAPID REVIEW Chapter Content

RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

### Chapter 5: Business Valuation (Market Approach)

Chapter 5: Business Valuation (Market Approach) This methodology values larger companies based upon the value of similar publicly traded For smaller companies, otherwise known as micro businesses (e.g.,

### Discussion Board Articles Ratio Analysis

Excellence in Financial Management Discussion Board Articles Ratio Analysis Written by: Matt H. Evans, CPA, CMA, CFM All articles can be viewed on the internet at www.exinfm.com/board Ratio Analysis Cash

### Finance Master. Winter 2015/16. Jprof. Narly Dwarkasing University of Bonn, IFS

Finance Master Winter 2015/16 Jprof. Narly Dwarkasing University of Bonn, IFS Chapter 2 Outline 2.1 Firms Disclosure of Financial Information 2.2 The Balance Sheet 2.3 The Income Statement 2.4 The Statement

### 3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS

3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS (1) Consolidated Quarterly Balance Sheets September 30, 2014 and March 31, 2014 Supplementary Information 2Q FY March 2015 March 31, 2014 September 30, 2014

### Financial Statement Ratio Analysis

Management Accounting 319 Financial Statement Ratio Analysis Financial statements as prepared by the accountant are documents containing much valuable information. Some of the information requires little

### Consolidated Financial Results for Six Months Ended September 30, 2007

Consolidated Financial Results for Six Months Ended September 30, 2007 SOHGO SECURITY SERVICES CO., LTD (URL http://ir.alsok.co.jp/english) (Code No.:2331, TSE 1 st Sec.) Representative: Atsushi Murai,

### FINANCIAL INFORMATION FOR THE FIRST QUARTER 2015 (Condensed and Unaudited)

FINANCIAL INFORMATION FOR THE FIRST QUARTER 2015 (Condensed and Unaudited) Page Financial Statements (IFRS, Unaudited) Consolidated Income Statements Consolidated Statements of Financial Position Consolidated

### Total shares at the end of ten years is 100*(1+5%) 10 =162.9.

FCS5510 Sample Homework Problems Unit04 CHAPTER 8 STOCK PROBLEMS 1. An investor buys 100 shares if a \$40 stock that pays a annual cash dividend of \$2 a share (a 5% dividend yield) and signs up for the

### Chapter 002 Financial Statements, Taxes and Cash Flow

Multiple Choice Questions 1. The financial statement summarizing the value of a firm's equity on a particular date is the: a. income statement. B. balance sheet. c. statement of cash flows. d. cash flow

### Consolidated Statement of Profit or Loss (in million Euro)

Consolidated Statement of Profit or Loss (in million Euro) Q3 2014 Q3 2015 % change 9m 2014 9m 2015 % change Revenue 636 661 3.9% 1,909 1,974 3.4% Cost of sales (440) (453) 3.0% (1,324) (1,340) 1.2% Gross

### FI3300 Corporation Finance

Learning Objectives FI3300 Corporation Finance Spring Semester 2010 Dr. Isabel Tkatch Assistant Professor of Finance Explain the objectives of financial statement analysis and its benefits for creditors,

### Chapter 4: Liquor Store Business Valuation

Chapter 4: Liquor Store Business Valuation In this section, we will utilize three approaches to valuing a liquor store. These approaches are the: (1) cost (asset based), (2) market, and (3) income approach.

### Ratios from the Statement of Financial Position

For The Year Ended 31 March 2007 Ratios from the Statement of Financial Position Profitability Ratios Return on Sales Ratio (%) This is the difference between what a business takes in and what it spends

### Consolidated and Non-Consolidated Financial Statements

May 13, 2016 Consolidated and Non-Consolidated Financial Statements (For the Period from April 1, 2015 to March 31, 2016) 1. Summary of Operating Results (Consolidated) (April 1,

### Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

### GVEP Workshop Finance 101

GVEP Workshop Finance 101 Nairobi, January 2013 Agenda Introducing business finance Understanding financial statements Understanding cash flow LUNCH Reading and interpreting financial statements Evaluating

### APPENDIX 1 The Statement of Financial Position

APPENDIX 1 The Statement of Financial Position 1. Assets: the resources of the organization which are used to provide service and generate value 2. Current assets: assets which can be converted to cash