# Comprehensive exam Feb.11

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 Comprehensive exam Feb.11 1

2 Objectives of the examination Apply the financial management concept to evaluate the company s performance. Relate the results of the analysis to make financial decisions or make recommendations. 2

3 Guidance to comprehensive exam THREE questions, passing score 55% Calculation part: (50 points) Value-based performance analysis (Free Cash Flow to Firm, Return on Invested Capital, Weighted Average Cost of Capital) Other information such as financial ratios are provided. Analysis part: (50 points) Analysis of the company based on your calculation & available information. Recommendation based on the result of your calculation 3

4 Calculation parts Free Cash Flow Return on Invested Capital Weighted Average Cost of Capital Review the definitions of financial ratios 4

5 Free cash flow Total cash available for distribution to owners and creditors after funding all worthwhile investment activities 5

6 Free cash flow Free cash flow to firm (FCFF) is cash flow from operations after investments in working capital and capital expenditure It represents the amount of cash available to debt and equity holders of the company. It is used to assess the ability of the firm to meet its interest and principal repayment Free cash flow to equity (FCFE) is free cash flow to firm after interest and principal payment. It represents the amount of cash available for equity holders. It is used to assess the firms financial ability to sustain its dividend policy and to identify potential agency problems from excess free cash flow. 6

7 Calculating free cash flow to firm Using income statement EBIT x (1- Tax rate) + Depreciation/ Amortisation (Other non cash charges) - Change in working capital - Change in fixed capital = Free Cash Flow to Firm Using cash flow statement Cash flow from operations +/- Cash flow from investing activities + After tax interest (interest expense x (1-Tax rate) = Free Cash Flow to Firm 7

8 Practice exercise Cash 259, , ,794 67,861 Trade account receivables 334, , , ,415 Inventory 669, ,080 1,272,746 1,258,817 Other current assets 58,793 36, ,240 46,509 Trade account payables 109, , , ,571 Other current liabilities 76,081 92, , ,547 Property, plant and equipment 827,805 1,237,691 2,256,911 2,406,649 EBIT 255, , , ,280 Depreciation and amortisation 61,219 73, , ,256 Note: tax rate is 30% 8

9 Calculating free cash flow for 2005 Step 1: Calculate change in working capital requires you to calculate working capital for 2004 and 2005 Working capital = (CASH + A/R + Inventory + Other operating current assets) (A/P + Other operating current liabilities) 9

10 Other operating CA & CL are shown as a single line under other current assets and other current liabilities in SETSMART financial statements 10

11 Working capital 2004 and Cash 259, , = Trade account receivables 334, ,164 Inventory 669, ,080 Other current assets 58,793 36,492 Trade account payables 109, ,723 + Other current liabilities 76,081 92,834 Working capital 1,136,526 1,105,466 Change in working capital -31,060 11

12 Free cash flow Step 2: Calculate change in fixed capital 2005 = Property, Plant and Equipment 05 Property, Plant and Equipment 04 = 1,237, ,805 = 409,886 Step 3: Calculate Free cash flow to firm 2005 = EBIT * (1-.30) = 163,672 *.70 = 114,570 + Depreciation & Amortization = + 73,689 - Change in working capital = - (-31,060) - Change in fixed capital = - 409,886 = -190,567 Now, calculate free cash flow for 2006 and

13 Solution to 2006 & EBIT * (1-.30) Depreciation & Amortization Change in working capital Change in fixed capital Free cash flow to firm 144, , ,780 1,019,220-1,420, , ,256-30, , ,883 13

14 Exercise Calculate WACC for Bumrungrad international 1 month T-Bill 3.7% 3 year govt. bond 4% 23 year govt. bond 5.2% SET return 14% Cov (Bh, m) Var (market) Share price 35.5 No. of share outstanding (unit in 000) 728,269 Average cost of debt 7% Corporate Tax rate 30% 14

15 Value-based performance analysis Calculate ROIC, and Economic Profit for BH for the year

16 Value-based performance analysis Does the company create value or destroy value? What are the key drivers of the company s performance? 16

17 Solution to BH: 17

18 Solution: ROIC - Definition: NOPAT / Invested Capital bop - NOPAT = EBIT x (1 Tax rate) - NOPAT = 2,159,147 x (1-0.3) - NOPAT = 1,511,403 - Invested capital = Interest bearing debt Shareholders equity Interest bearing debt 2006 = Current portion of long-term borrowings from financial institutions (328,522) + Long-term liabilities-net of current portion (1,422,449) = 1,750,971 - Shareholders equity 2006 = 3,628,547 - Invested capital 2006 = 1,750, ,628,547 = 5,379, ROIC = 1,511,403/ 5,379,518 = 28% 18

19 Solution: ROIC - Breakdown - Definition: NOPAT / Invested Capital bop = NOPAT x Sales Sales Invested capital 06 NOPAT margin Capital Turnover - NOPAT margin = 1,511,403 = 16.06% 9,413,123 - Capital turnover = 9,413,123 = 1.74 times 5,379,518 - Check : 16.06% x 1.74 = 28% 19

20 Solution: WACC Cost of debt = 7% After tax cost of debt = rd x (1 Tax) = 7% x (1-.3) = 4.9% Cost of equity = [(22.87/35.24) x ( )] = 10.91% 20

21 Solution: WACC Total capital = Book value of Debt + Market value of equity Book value of debt = 1,335,301 Long-term liabilities-net of current portion Market value of equity = 35.5 x 728,269 = 25,853, Total capital = 1,335,301+25,853, = 27,188,850 - Weight of debt = 1,335,301/27,188,850 = Weight of equity = = WACC = [0.05 x 4.9%] + [0.95 x 10.91%] = 10.61% - ROIC = 28% > WACC 10.61% 21

### 1. Operating, Investment and Financial Cash Flows

1. Operating, Investment and Financial Cash Flows Solutions Problem 1 During 2005, Myears Oil Co. had gross sales of \$1 000,000, cost of goods sold of \$400,000, and general and selling expenses of \$300,000.

### 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

### Chapters 3-4 Financial Statements, Cash Flow, and Analysis of Financial Statements. Balance Sheet. Total Liabilities and Shareholder s Equity

Chapters 3-4 Financial Statements, Cash Flow, and Analysis of Financial Statements Balance Sheet Assets Cash Inventory Accounts Receivable Property Plant Equipment Liabilities and Shareholder s Equity

### 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

### 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

### 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

### The following information is available on Toy Inc. There are 100 shares outstanding, each selling for \$25

The following information is available on Toy Inc. There are 100 shares outstanding, each selling for \$25 Corporate tax 34.00% Interest rate 4.25% Retention ratio 65.00% Case A. Toy Inc. Zero growth in

### 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

### 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

### IFRS Financial Ratios.

100 IFRS Financial Ratios Author s preface Dear readers, in order to make solid investments, investors compare companies within their peer group. For this purpose, key ratios such as EBIT, working capital

### 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

### 14. Calculating Total Cash Flows.

14. Calculating Total Cash Flows. Greene Co. shows the following information on its 2008 income statement: Sales = \$138,000 Costs = \$71,500 Other expenses = \$4,100 Depreciation expense = \$10,100 Interest

### NIKE Case Study. Professor Corwin. An overview of the individual questions and their relation to the lecture topics is provided below.

NIKE Case Study Professor Corwin This case study includes several problems related to the valuation of Nike. We will work through these problems throughout the course to demonstrate some of the most important

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

Consolidated Statement of Profit or Loss (in million Euro) Q3 2013 Q3 2014 % change 9m 2013 9m 2014 % change Revenue 689 636-7.7% 2,126 1,909-10.2% Cost of sales (497) (440) -11.5% (1,520) (1,324) -12.9%

### 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

### 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

### CFAspace. CFA Level II. Provided by APF. Academy of Professional Finance 专 业 金 融 学 院

CFAspace Provided by APF CFA Level II Equity Investments Free Cash Flow Valuation Part I CFA Lecturer: Hillary Wang Content Free cash flow to the firm, free cash flow to equity Ownership perspective implicit

### Understanding Cash Flow Statements

Understanding Cash Flow Statements 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Components and Format of the Cash Flow Statement... 3 3. The

### 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

### 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

### RATIO ANALYSIS FORMULAS + THEORIES

A) Cash Position Ratio : - 1) Absolute Cash Ratio = Cash Reservoir Current Liabilities 2) Cash Position to Total asset Ratio = Cash Reservoir * 100 (Measure liquid layer of assets) Total Assets 3) Interval

### 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

### NWC = current assets - current liabilities = 2,100

Questions and Problems Chapters 2,3 pp45-47 1. Building a balance sheet. Penguin Pucks, Inc., has current assets of \$3,000, net fixed assets \$6,000, current liabilities of \$900, and long-term debt of \$5,000.

### Ratio Analysis 0.75. Fixed Assets Fixed Assets + Net Working Capital =0.75 Fixed Assets

Ratio Analysis CA Past Years Exam Answer Answer to Q.1: (Nov, 009) Fixed assets ` 18,00,000 Proprietor s funds ` 4,00,000 Note: 1 Ratio of fixed assets to proprietor s funds 0.75 Properietors Fund 0.75

### Key Concepts and Skills. Standardized Financial. Chapter Outline. Ratio Analysis. Categories of Financial Ratios 1-1. Chapter 3

Key Concepts and Skills Chapter 3 Working With Financial Statements Know how to standardize financial statements for comparison purposes Know how to compute and interpret important financial ratios Know

### Chapter 13, ROIC and WACC

Chapter 13, ROIC and WACC Lakehead University Winter 2005 Role of the CFO The Chief Financial Officer (CFO) is involved in the following decisions: Management Decisions Financing Decisions Investment Decisions

### 2-8. Identify whether each of the following items increases or decreases cash flow:

Problems 2-8. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease

### CONSOLIDATED STATEMENT OF INCOME

CONSOLIDATED STATEMENT OF INCOME 4 th quarter (a) 3 rd quarter 4 th quarter 2009 Sales 40,157 40,180 36,228 Excise taxes (4,397) (4,952) (4,933) Revenues from sales 35,760 35,228 31,295 Purchases, net

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

Consolidated Statement of Profit or Loss (in million Euro) FY 2013 FY 2014 % change Q4 2013 Q4 2014 % change un Revenue 2,865 2,620-8.6% 739 711-3.8% Cost of sales (2,031) (1,813) -10.7% (511) (489) -4.3%

### Chapter 1 Financial Statement and Cash Flow Analysis

Chapter 1 Financial Statement and Cash Flow Analysis MULTIPLE CHOICE 1. Which of the following items can be found on an income statement? a. Accounts receivable b. Long-term debt c. Sales d. Inventory

### 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

### CHAPTER 6. P.6.17 The following are the ratios relating to the activities of National Traders Ltd:

CHAPTER 6 Solved Problems P.6.17 The following are the ratios relating to the activities of National Traders Ltd: Debtors velocity (months) 3 Stock velocity (months) 8 Creditors velocity (months) 2 Gross

### Chapter 2 Financial Statement and Cash Flow Analysis

Chapter 2 Financial Statement and Cash Flow Analysis MULTIPLE CHOICE 1. Which of the following items can be found on an income statement? a. Accounts receivable b. Long-term debt c. Sales d. Inventory

### 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

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

Consolidated Statement of Profit or Loss (in million Euro) FY 2014 FY 2015 % change Q4 2014 Q4 2015 % change un Revenue 2,620 2,646 1.0% 711 672-5.5% Cost of sales (1,813) (1,804) -0.5% (489) (464) -5.1%

### Economic Value Added (EVA) Valuation Tutorial

Economic Value Added (EVA) Valuation Tutorial Index 1. Introduction to valuation: valuation of bond 2. Company valuation Determing the cost of capital Calculating EVA 3. Detailed examples of EVA-valuation

### 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

### Company Share Price Valuation using Free Cash Flow To Equity

Financial Modeling Templates Company Share Price Valuation using Free Cash Flow To Equity http://spreadsheetml.com/finance/valuation_freecashflowtoequity.shtml Copyright (c) 2009-2014, ConnectCode All

### MBA Financial Management and Markets Exam 1 Spring 2009

MBA Financial Management and Markets Exam 1 Spring 2009 The following questions are designed to test your knowledge of the fundamental concepts of financial management structure [chapter 1], financial

### Calculating financial position and cash flow indicators

Calculating financial position and cash flow indicators Introduction When a business is deciding whether to grant credit to a potential customer, or whether to continue to grant credit terms to an existing

### Analyzing the Statement of Cash Flows

NACM Central Region Credit Conference 2012 Analyzing the Statement of Cash Flows John A. Jaeger, CCE Manager Credit & Accounts Receivable Follett Higher Education Group 1 1 Analyzing the Statement of Cash

### A Simple Model. Introduction to Financial Statements

Introduction to Financial Statements NOTES TO ACCOMPANY VIDEOS These notes are intended to supplement the videos on ASimpleModel.com. They are not to be used as stand alone study aids, and are not written

### Liquidity analysis: Length of cash cycle

2. Liquidity analysis: Length of cash cycle Operating cycle of a merchandising firm: number of days it takes to sell inventory + number of days until the resulting receivables are converted to cash Acquisition

### Midterm exam financiering/finance. <Front page>

Midterm exam financiering/finance Question 1 An agency problem can be alleviated by: A) requiring all organizations to be sole proprietorships. B) compensating managers in such a way that

### Financial Modeling & Corporate Valuations

Financial Modeling & Corporate Valuations Presented by Affan Sajjad ACA Cell # 03219400788 Presenter Profile Passed CA exams in December 2004 Became Associate Member of ICAP in November 2005 Completed

### EBITDA, EBITDA margin, EBIT and EBIT margin

Interim Group Report 0106/2016 Key financial performance indicators for the Lenzing Group will be described here in detail. For the most part, they are derived from the Lenzing Group s condensed consolidated

### CASH FLOW STATEMENT. On the statement, cash flows are segregated based on source:

CASH FLOW STATEMENT On the statement, cash flows are segregated based on source: Operating activities: involve the cash effects of transactions that enter into the determination of net income. Investing

### Ten-year review, ratios, share

Ten-year review, ratios, share statistics and definitions Ten-year Review Period Number of weeks Statements of comprehensive income 10-year compound growth % Sale of merchandise 14 11 290 10 458 Cost of

### 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

### Chapter. How Well Am I Doing? Financial Statement Analysis

Chapter 17 How Well Am I Doing? Financial Statement Analysis 17-2 LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Explain the need for and limitations of financial statement

### Managerial Accounting Prof. Dr. Varadraj Bapat Department of School of Management Indian Institute of Technology, Bombay

Managerial Accounting Prof. Dr. Varadraj Bapat Department of School of Management Indian Institute of Technology, Bombay Lecture - 18 Financial Statements Analysis Dabur India Case Dear students, in last

### Brain J. Dunn, CEO Richfield, Minnesota U.S Latest fiscal year: 2010 Best Buy is an American retailer that sells a wide variety of electronic

Current Shareholders in Best Buy should hold their stock until price increases, and new investors should not invest if looking for fast money, Best Buy s stock may not more until more economic growth occurs.

### 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

### A Simple Model. Cash Flow Statement

An introduction to the cash flow statement in the context of building a financial model. This series introduces the financial statements in the context of a financial model. Cash Flow Statement NOTES TO

### Chapter 3. Learning Objectives Principles Used in This Chapter 1. An Overview of the Firm s Financial Statements

Chapter 3 Understanding Financial Statements, Taxes, and Cash Flows Agenda Learning Objectives Principles Used in This Chapter 1. An Overview of the Firm s Financial Statements 2. The Income Statement

### 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

### Chapter 3 Financial Statements, Cash Flow, and Taxes

Chapter 3 Financial Statements, Cash Flow, and Taxes ANSWERS TO END-OF-CHAPTER QUESTIONS 3-1 a. The annual report is a report issued annually by a corporation to its stockholders. It contains basic financial

### Essential Learning for CTP Candidates TEXPO Conference 2016 Session #03

TEXPO Conference 2016: Essential Learning for CTP Candidates Session #3 (Mon.1:45 3:00 pm) Overview of Basic CTP Math from ETM4 Chap 07: Earnings Credits Chap 09: Working Capital Chap 18: Fin. Statements

### Chapter Financial Forecasting

Chapter Financial Forecasting PPT 4-2 Chapter 4 - Outline What is Financial Forecasting? 3 Financial Statements for Forecasting Constructing Pro Forma Statements Basis for Sales Projections Steps in a

### 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

### Smithfield Motors: A case in lending, strategy, and value

ABSTRACT Smithfield Motors: A case in lending, strategy, and value Steve A. Nenninger Sam Houston State University The primary subject matter of this case is financial statement analysis. Issues examined

### 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

### 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

### ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)

Page 1 ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL) Complete these sample exam problems/objective questions and check your answers with the solutions at the end of the review file and identify where

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

Consolidated Statement of Profit or Loss (in million Euro) Q2 2012 Q2 2013 % H1 2012 H1 2013 % Restated * change Restated * change Revenue 779 732-6.0% 1,513 1,437-5.0% Cost of sales (553) (521) -5.8%

### Today s Agenda. DFR1 and Quiz 3 recap. Net Capital Expenditures. Working Capital. Dividends. Estimating Cash Flows

Today s Agenda DFR1 and Quiz 3 recap Net Capital Expenditures Working Capital Dividends Estimating Cash Flows Net Capital expenditures Net capital expenditures = capital expenditures - depreciation Depreciation

### Vertical and Horizontal Analysis. Financial Analysis. Lecturer: Dr. Constantinos Adamides

Vertical and Horizontal Analysis Financial Analysis Lecturer: Dr. Constantinos Adamides Horizontal Analysis Comparison of financial information of a single company for two more years Examination of absolute

### Chapter 13 Corporate Valuation, Value-Based Management, and Corporate Governance ANSWERS TO END-OF-CHAPTER QUESTIONS

Chapter 13 Corporate Valuation, Value-Based Management, and Corporate Governance ANSWERS TO END-OF-CHAPTER QUESTIONS 13-1 a. Assets-in-place, also known as operating assets, include the land, buildings,

### Corporate Finance: Final Exam

Corporate Finance: Final Exam Answer all questions and show necessary work. Please be brief. This is an open books, open notes exam. For partial credit, when discounting, please show the discount rate

### MBA Finance Part-Time Financial Statement Analysis and Cash Flows

MBA Finance Part-Time Financial Statement Analysis and Cash Flows Professor Hugues Pirotte Spéder 1 1 Levers of Performance Return on Equity Return on Invested Capital Leverage Profit Margin Asset Turnover

### Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:

Financial Ratios Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios

### 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

### 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

### ONESTEEL LIMITED PRO-FORMA FINANCIAL INFORMATION FOR THE MERGED GROUP IN RESPECT OF THE MERGER ONESTEEL LIMITED AND SMORGON STEEL GROUP LIMITED

ONESTEEL LIMITED PRO-FORMA FINANCIAL INFORMATION FOR THE MERGED GROUP IN RESPECT OF THE MERGER OF ONESTEEL LIMITED AND SMORGON STEEL GROUP LIMITED For further information: Mark Gell General Manager, Corporate

### Financial Statements

Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare

### 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

### Advanced Corporate Finance. 2. Financial Planning, from Accounting to Free Cash Flows

Advanced Corporate Finance 2. Financial Planning, from Accounting to Free Cash Flows Objectives of the session 1. Show how to use accounting information to compute cash flows 2. Understand and compute

### Strides Pharma Botswana (Pty) Ltd BALANCE SHEET AS AT Mar 31, 2016

BALANCE SHEET AS AT Mar 31, 2016 Schedule A. EQUITY AND LIABILITIES 1. Shareholders' funds a) Share capital 1 1,597,444 1,597,444 b) Reserves and Surplus 2 1,737,474-3,334,918 1,597,444 2. Share application

### CHAPTER 21. Working Capital Management

CHAPTER 21 Working Capital Management 1 Topics in Chapter Alternative working capital policies Cash, inventory, and A/R management Accounts payable management Short-term financing policies Bank debt and

### Using Accounts to Interpret Performance

Using s to Interpret Performance ing information is used by stakeholders to judge the performance and efficiency of a business Different stakeholders will look for different things: STAKEHOLDER Shareholders

### Chapter 6 Statement of Cash Flows

Chapter 6 Statement of Cash Flows The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions

### Preliminary Consolidated Financial Statements 2015 >

Preliminary Consolidated Financial Statements 2015 > The following results and amounts are preliminary statements that have not yet been approved or adopted by the Supervisory Board. Preliminary Consolidated

### Chapter 3 Financial Statements Analysis and Long-Term Planning

University of Science and Technology Beijing Dongling School of Economics and management Chapter 3 Financial Statements Analysis and Long-Term Planning Sep. 2012 Dr. Xiao Ming USTB 1 Key Concepts and Skills

### CFO s presentation. CFO Jari Karlson

CFO s presentation CFO Jari Karlson Orion s financial objectives Increasing net sales. Achievement of this objective requires continuous investment in development of the product portfolio. Maintaining

### 2015 FIRST HALF RESULTS CONFERENCE CALL. August 31st, 2015

2015 FIRST HALF RESULTS CONFERENCE CALL August 31st, 2015 DISCLAIMER This presentation has been prepared by Eurotech S.p.A.(or Eurotech ) and has to be read in conjunction with its oral presentation. The

### 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

### Brief Report on Closing of Accounts (connection) for the Term Ended March 31, 2007

MARUHAN Co., Ltd. Brief Report on Closing of (connection) for the Term Ended March 31, 2007 (Amounts less than 1 million yen omitted) 1.Business Results for the term ended on March, 2007 (From April 1,

### Cash Flow Analysis Venture Business Perspective

Cash Flow Analysis Venture Business Perspective Cash Flow (CF) Analysis What is CF and how is determined? CF Operating CF Free CF Managing CF Cash Conversion Cyclical CF Break-even Valuing venture businesses

### TOPIC LEARNING OBJECTIVE

Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation

### Consolidated Statements of Profit or Loss Ricoh Company, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2014 and 2015

Consolidated Statements of Profit or Loss Sales: Products 1,041,794 1,071,446 8,928,717 Post sales and rentals 1,064,555 1,068,678 8,905,650 Other revenue 89,347 91,818 765,150 Total sales 2,195,696 2,231,942

### 5. Statement of Cash Flows Analysis

5. Statement of Cash Flows Analysis Table 9. Consolidated Statements of Cash Flows THE COCA-COLA COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, OPERATING ACTIVITIES CONSOLIDATED

### Module 4: Free Cash Flow (FCF) Which cash flows do we discount?

70391 - Finance Module 4: Free Cash Flow (FCF) Which cash flows do we discount? 70391 Finance Fall 2016 Tepper School of Business Carnegie Mellon University c 2016 Chris Telmer. Some content from slides

### CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS

C H 2 3, P a g e 1 CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS (note from Dr. N: I have deleted questions for you to omit, but did not renumber the remaining questions) 1. The primary purpose of

### Solution. Term: Fall Year: Time Period Start time: 9:00 am End time: 11:30 am

Solution Term: Fall Year: 2011 Student Name Student ID Number Date of Exam Thursday, December 15, 2011 Time Period Start time: 9:00 am End time: 11:30 am Duration of Exam 2.5 hours Number of Exam Pages

### 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

### Chapter 9 Solutions to Problems

Chapter 9 Solutions to Problems 1. a. Cash and cash equivalents are cash in hand and in banks, plus money market securities with maturities of 90 days or less. Accounts receivable are claims on customers

### Teacher Resource Bank

Teacher Resource Bank GCE Accounting Other Guidance: ACCN2 Update on IAS ACCN3 Updates on IAS (July 2012). The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registered

### Lecture 13 Working Capital Management and Credit Issues

Lecture 13 - Working Capital Management Gross working capital: Net working capital: BASIC DEFINITIONS Total current assets. Net operating working capital (NOWC): Operating CA Operating CL = Current assets