Shipping Companies Financial Performance Measurement using Industry Key Performance Indicators Case Study: The highly volatile period
|
|
- Grant Booker
- 8 years ago
- Views:
Transcription
1 Shipping Companies Financial Performance Measurement using Industry Key Performance Indicators Case Study: The highly volatile period Maro Varvate Managing Director, OceanFinance Ltd
2 Scope of the project and cognitive fields The Scope of the project is to Develop a Financial Performance Measurement tool based on Corporate Valuation of shipping companies using Shipping-related Key Performance Indicators Research method Industry Benchmarking to assess a company s risk and its ability to generate free cash flows in comparison with its universe Evaluate trends in the firm s position over time in terms of Liquidity, Fleet Management, Debt Management, Profitability and its Market Value Added - Value is created for Key executives Shipping analysts (incl. bank officers and private equities) Stock analysts and Investors
3 Objective Function THE VALUE OF A SHIPPING COMPANY IS DETERMINED BY THE SIZE, TIMING AND RISK OF ITS EXPECTED FUTURE FREE CASH FLOWS Operational Risks Fluctuation in Revenues Fluctuation in Bunker Prices Ownership Risks Fluctuation in Vessels Market Values Fluctuation in Vessels Scrap Values Financial Risks Fluctuation in Interest Rates (Debt finance) Fluctuation in ForEx (Revenues vs Obligations) Fleet Profit&Loss Associated Risk Voyage Hire (Revenue) Freight Market Volatility - Voyage Costs Bunker price volatility -OpEx ForEx fluctuation = Operating Profit - Interest Expense Interest rate fluctuation + Profit (Loss) of S&Ps Vessels Price Volatility = Net Profit - Loan Repayment Net Cash Flow Counterparty (credit) Risks Charterers financial capacity
4 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Shipping Market and Macroeconomic Environment Macroeconomic 300 Indices BDI Euribor 3m Euro/USD BRENT
5 Corporate Fundamentals BALANCE SHEET INCOME STATEMENT CASH FLOW STATEMENT Assets Liabilities & Equity Revenues Cash at the beginning of the period Cash and Cash Equivalents Accounts Payable - Voyage Costs +/- Cash Flow form Operating Activities Short-term investments Accruals - Operating Expenses +/- Cash Flow from Investing Activities Accounts receivable Short term debt = Operating Profit (EBIT) +/- Cash Flow from Financing Activities Inventories Other current assets Total Current Liabilities Long term Debt - Interest Expense Free Cash Flow + Profit (Loss) of S&Ps Total Current Assets Total Non-Current Liabilities = Net Profit Vessels Common Stock - Capital Payments - Dividends =Net Cash Flow Other fixed assets Retained Earnings OPERATING AND SHARE DATA Total Fixed Assets Total Equity Time Charter Equivalent Rate (TCE) Income days Available days Fleet Utilization Common stock price
6 Liquidity Ratios Current _ Ratio Current _ Assets Current _ Liabilitie s BALANCE SHEET Assets Liabilities & Equity Cash and Cash Equivalents Accounts Payable Acid _ Test _ Ratio Current _ Assets Inventories Current _ Liabilitie s Short-term investments Accounts receivable Inventories Accruals Short term debt Total Current Liabilities Other current assets Long term Debt Cash _ Ratio Cash & Cash _ Equivalents Current _ Liabilitie s Total Current Assets Vessels Total Non-Current Liabilities Common Stock Other fixed assets Retained Earnings Total Fixed Assets Total Equity The ability of the company to pay off its debts as they come due over the short term period
7 Liquidity Ratios Trend Analysis 6 DRY WET 3.0 DVRS 5 4 Acid-test Ratio Cash Ratio
8 Asset Management Ratios (Fleet) INCOME STATEMENT BALANCE SHEET Fixed _ Assets _ Turnover REVENUES Net _ Fixed _ Assets Revenues - Voyage Costs Assets Cash and Cash Equivalents Liabilities & Equity Accounts Payable - Operating Expenses Short-term investments Accruals Total _ Assets _ Turnover REVENUES Total _ Assets = Operating Profit (EBIT) - Interest Expense Accounts receivable Inventories Short term debt Total Current Liabilities + Profit (Loss) of S&Ps Other current assets Long term Debt = Net Profit Total Current Assets Total Non-Current Liabilities - Capital Payments Vessels Common Stock - Dividends Other fixed assets Retained Earnings =Net Cash Flow Total Fixed Assets Total Equity The ability of the company to effectively manage its vessels
9 Asset Management Ratios (Fleet) Trend Analysis 0.30 DRY WET Non Current Assets Turnover Total Assets Turnover DVRS
10 Debt Management Ratios BALANCE SHEET Debt _ Ratio Total _ Liabilitie s Total _ Assets Assets Cash and Cash Equivalents Liabilities & Equity Accounts Payable Longterm _ Debt _ to_ Equity Longterm _ Debt Equity Short-term investments Accounts receivable Accruals Short term debt Equity _ to_ TotalDebt Equity Total _ Debt Inventories Other current assets Total Current Liabilities Long term Debt Total Current Assets Total Non-Current Liabilities Vessels Common Stock Other fixed assets Retained Earnings Total Fixed Assets Total Equity It measures the percentage of funds provided by sources other than equity
11 Debt Management Ratios Trend Analysis 2.50 DRY WET Equity to Total Debt Total Debt Ratio DVRS Long Term Debt to Equity
12 Profitability Ratios INCOME STATEMENT BALANCE SHEET PROFIT _ MARGIN Net _ profit REVENUES Revenues - Voyage Costs Assets Cash and Cash Equivalents Liabilities & Equity Accounts Payable - Operating Expenses Short-term investments Accruals ROA ( return _ on _ assets) Net Total profit Assets = Operating Profit (EBIT) - Interest Expense + Profit (Loss) of S&Ps Accounts receivable Inventories Other current assets Short term debt Total Current Liabilities Long term Debt = Net Profit Total Current Assets Total Non-Current Liabilities ROE ( return _ on _ equity) Net Total profit Equity - Capital Payments - Dividends Vessels Other fixed assets Common Stock Retained Earnings =Net Cash Flow Total Fixed Assets Total Equity The combined effects of liquidity, asset management and debt on operating results
13 Profitability Ratios Trend Analysis 40% 30% DRY Return on Assets (ROA) After Tax Return on Equity (ROE) After Tax Profit Margin Diversified Wet 20% Dry 10% 0.2 0% -10% % WET 14% DVRS 8% 6% 4% 2% 0% -2% -4% 12% 10% 8% 6% 4% 2% 0% -2%
14 The DuPont System ROE Net _ profit Equity Net _ profit revenues revenues Assets Assets Equity Pr ofit _ marg in Assets _ Turnover Leverage _ ratio asset turnover profit margin ROE Leverage A meaningful link between profitability and efficiency ratios
15 Market Value Ratios P / E SHARE _ PRICE NET _ PROFIT INCOME STATEMENT CASH FLOW STATEMENT Revenues Cash at the beginning of the period - Voyage Costs +/- Cash Flow form Operating Activities - Operating Expenses +/- Cash Flow from Investing Activities P / Cash _ Flow SHARE _ PRICE Cash _ Flow = Operating Profit (EBIT) +/- Cash Flow from Financing Activities - Interest Expense Free Cash Flow + Profit (Loss) of S&Ps = Net Profit - Capital Payments - Dividends =Net Cash Flow An indication of what investors think of company s past performance and future prospects OPERATING AND SHARE DATA Time Charter Equivalent Rate (TCE) Income days Available days Common stock price Fleet Utilization
16 Market Value Ratios Trend Analysis DRY P/E Basic - Average of VALUE P/E Basic - StdDev of VALUE WET DVRS
17 Fleet Utilization & TCE Fleet _ Utilization Income _ Days Available _ Days INCOME STATEMENT CASH FLOW STATEMENT Revenues Cash at the beginning of the period - Voyage Costs +/- Cash Flow form Operating Activities Time _ Charter _ Equivalent REVENUES Income _ Days - Operating Expenses +/- Cash Flow from Investing Activities = Operating Profit (EBIT) +/- Cash Flow from Financing Activities - Interest Expense Free Cash Flow + Profit (Loss) of S&Ps = Net Profit - Capital Payments - Dividends Boom and Bust cycles are caused due to disequilibrium of supply/demand equation =Net Cash Flow OPERATING AND SHARE DATA Time Charter Equivalent Rate (TCE) Income days Available days Common stock price Fleet Utilization
18 Fleet Utilization & TCE Trend Analysis 200 DRY 100% Fleet Utilization 150 TCE AverageBDI 95% % Diversified Wet 50 85% Dry 0 H % 200 WET 200 DVRS TCE AverageBCTI (clean tanker) 50 0 AverageBDTI (dirty tanker) H TCE AverageBDI AverageBDTI H2 2006
19 Values x 10^-7 Risk Assessment & Risk Management Industry Benchmarking measures Value Risk Assessment and Risk Management increases Value Financial Simulation of the company Assessment of Risk Factors and development of path generation stochastic models Measure Company s Cashflow-at-Risk Define risk-averting strategy 1.0 LogLogistic( , , ) 0.9 Financial Simulation Scheme Values in Millions < 14.8% 85.2% >
20 Risk Assessment & Risk Management Industry Benchmarking facilitates a shipping company to: Efficiently monitor and assess its exposure to commercial and operating risks Quantify its hedging needs using as objective function its cash flow position, where all external and internal volatile parameters are calculated and use FFAs, Interest rate swaps, FoEx futures, Bunker options to stabilize its expected cash flows Create a fleet portfolio based on its perception for shipping market prospects Define the optimum hedging ratio in between an excessive risk hedging which leads to poor financial performance and a moderate risk hedging which leads to bearing extreme risks
21 Looking beyond the numbers Industry Benchmarking can only be constructive, by taking into account Company s charterers base Company s fleet portfolio both in terms of market segment and size diversification Employment strategy Average age of fleet and investments in modern tonnage Growth and external financing Industry s fundamentals (supply, demand, orderbook, international trade dynamics) THE COMBINED EFFECT OF INDUSTRY BENCHMARKING AND RISK MANAGEMENT IN COMPANY S PERFORMANCE IS EFFICIENCY, EFFECTIVENESS AND HIGH GROWTH PROSPECTS
22 Thank you for your attention
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
More informationFinancial 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
More informationHow 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
More informationChapter 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
More informationRatio Analysis CBDC, NB. Presented by ACSBE. February, 2008. Copyright 2007 ACSBE. All Rights Reserved.
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
More informationComputing 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
More informationFNCE 3010 (Durham). HW2 (Financial ratios)
FNCE 3010 (Durham). HW2 (Financial ratios) 1. What effect would the following actions have on a firms net working capital and current ratio (assume NWC is positive and current ratio is initially greater
More informationReturn 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
More informationLiquidity 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
More informationFRONTLINE LTD. INTERIM REPORT JULY - SEPTEMBER 2005. Highlights
FRONTLINE LTD. INTERIM REPORT JULY - SEPTEMBER Highlights Frontline reports net income of $73.8 million and earnings per share of $0.99 for the third quarter of. Frontline reports nine month results of
More informationTYPES 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
More information2013 Third Quarter Review October 25, 2013 1
October 25, 213 1 Panalpina Group October 25, 213 213 Third Quarter Review October 25, 213 2 Highlights and key figures Operating and financial review Outlook Growth in profitability and margins in the
More informationICAP 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
More informationChapter. 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
More information2013 Second Quarter Review July 26, 2013 1
213 Second Quarter Review July 26, 213 1 Panalpina Group Basel, July 26, 213 213 Second Quarter Review 213 Second Quarter Review July 26, 213 2 Highlights and key figures Operating and financial review
More informationFINANCIAL 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
More informationFinancial 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%
More informationUnderstanding 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
More information* * * Chapter 15 Accounting & Financial Statements. Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 15 Accounting & Financial Statements Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall Bookkeeping vs. Accounting Bookkeeping Accounting The recording of business transactions.
More informationChapters 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
More informationMAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE
MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE Revised -December 13, 2011 1 FINANCIAL ANALYSIS USING STRATEGIC PROFIT MODEL RATIOS Introduction Your policy course integrates
More informationCourse 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
More informationThird Quarter 2012 Results Oslo 14 November 2012
Third Quarter 212 Results Oslo 14 November 212 1 Agenda Highlights Financials Operational review Market update and prospects Summary Q&A Session 2 Highlights Highlights EBITDA of USD 8 million reflects
More informationIncome 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
More informationNORDIC SHIPHOLDING. Interim Report H1 2015. 26 August 2015 CVR-no. 76 35 17 16
NORDIC SHIPHOLDING Interim Report H1 2015 26 August 2015 CVR-no. 76 35 17 16 Summary The comparison figures for period ended 30 June 2014 are stated in parenthesis. The Group generated a profit before
More informationIntegrated 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
More informationRegistration no. 33 36 97 94
Registration no. 33 36 97 94 Viking Supply Ships A/S Financial Report Contents Page Summary of events 3 Operational highlights 3 Financial highlights 3 Financing and capital structure 4 Subsequent events
More informationAs 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
More informationChapter 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
More informationContribution 787 1,368 1,813 983. Taxable cash flow 682 1,253 1,688 858 Tax liabilities (205) (376) (506) (257)
Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2012 Answers 1 (a) Calculation of net present value (NPV) As nominal after-tax cash flows are to be discounted, the nominal
More informationFINANCIAL ANALYSIS GUIDE
MAN 4720 POLICY ANALYSIS AND FORMULATION FINANCIAL ANALYSIS GUIDE Revised -August 22, 2010 FINANCIAL ANALYSIS USING STRATEGIC PROFIT MODEL RATIOS Introduction Your policy course integrates information
More informationSolutions 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.
More informationEarnings Conference Call Second Quarter & 6 Months Ended June 30, 2015
Earnings Conference Call Second Quarter & 6 Months Ended June 30, 2015 Forward Looking Statements This presentation contains certain statements that may be deemed to be forward-looking statements within
More informationUnderstanding 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
More informationRatio Analysis: Liquidity, Activity & Coverage
Ratio Analysis: Liquidity, Activity & Coverage Quality of Earnings Fraudulent actions Above-average financial risk One-time transactions Borrow from the future/reach into the past Ride the depreciation
More informationACCOUNTING FOR NON-ACCOUNTANTS
Deutsch and Chikarovski's ACCOUNTING FOR NON-ACCOUNTANTS A Question and Answer Handbook Robert Deutsch and Kris Chikarovski THE FEDERATION PRESS 2012 Preface - x Who is this book for? x What is in this
More informationEARNINGS CONFERENCE CALL Second Quarter Ended June 30, 2015
EARNINGS CONFERENCE CALL Second Quarter Ended June 30, 2015 Disclosures and Forward Looking Statements This presentation contains certain statements that may be deemed to be forward-looking statements
More informationCHAPTER 3 LONG-TERM FINANCIAL PLANNING AND GROWTH
CHAPTER 3 LONG-TERM FINANCIAL PLANNING AND GROWTH Answers to Concepts Review and Critical Thinking Questions 5. The sustainable growth rate is greater than 20 percent, because at a 20 percent growth rate
More informationPreparing 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
More informationRATIO ANALYSIS AND BUSINESS VIABILITY
RATIO ANALYSIS AND BUSINESS VIABILITY Timeframe: Learning Outcome: Recommended reading: Section overview 18 hours Apply ratio analysis in determining the viability of a business. Marx, J., de Swardt, C.,
More informationKey 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
More informationRatio 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
More informationTeacher 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
More informationChapter 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
More informationFinancial 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
More informationReports Results for First Quarter 2007 and Declares Quarterly Dividend
Ship Finance International Limited (NYSE: SFL) Reports Results for First Quarter and Declares Quarterly Dividend Ship Finance International Limited ( Ship Finance or the Company ) announces today the financial
More informationChapter 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.,
More informationChapter 8 Financial Statement Analysis
Chapter 8 Financial Statement Analysis rue/false Questions F 1. Balance sheet items are carried at original cost or market value at the discretion of the individual firm. F 2. A primary use of the sources
More informationFI3300 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,
More informationNomura Securities Co., Ltd. Non-consolidated Balance Sheets
ASSETS Non-consolidated Balance Sheets Nomura Securities Co., Ltd. (Millions of yen) March 31, 2014 March 31, 2015 Increase/(Decrease) Current Assets 12,488,887 13,949,399 1,460,512 Cash and time deposits
More informationInterim financial report for the period 1 January to 30 September 2011
Company announcement no. 11/ 18 November Page 1 of 9 Interim financial report for the period 1 January to 30 September Highlights Results improved in the third quarter with a gross profit of USD 8 million
More informationJohn 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
More informationChapter-3 Solutions to Problems
Chapter-3 Solutions to Problems P3-1. P3-2. Reviewing basic financial statements LG 1; Basic Income statement: In this one-year summary of the firm s operations, Technica, Inc. showed a net profit for
More informationIs Apple overvalued? An Introduction to Financial Analysis
Is overvalued? An Introduction to Financial Analysis The fact that the stock price almost doubled during the last year, was evidence enough for many people to say that investors had gone crazy. Other people
More informationConsolidated 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%
More informationFor our curriculum in Grade 12 we are going to use ratios to analyse the information available in the Income statement and the Balance sheet.
SUBJECT: ACCOUNTING GRADE 12 CHAPTER: COMPANIES LESSON: ANALYSIS AND INTERPRETATION-RATIOS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON 1. Introduction 2. Analysing of financial statements and its purpose
More informationNotes to the consolidated financial statements continued
144 www.ocadogroup.com Stock Code: OCDO to the consolidated financial statements continued 4.5 instruments Accounting policies assets and financial liabilities are recognised on the balance sheet when
More informationRegulation G Reconciliations
Regulation G Reconciliations Reconciliation of Global Rolled Products Adjusted EBITDA to ATOI ($ in millions, except per metric ton amounts) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
More informationReview for Exam 3. Instructions: Please read carefully
Review for Exam 3 Instructions: Please read carefully The exam will have 25 multiple choice questions and 5 work problems. You are not responsible for any topics that are not covered in the lecture note
More informationTotal 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 $2 a share (a 5% dividend yield) and signs up for the
More informationACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements. Fall 2015 Comp Week 5
ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements Fall 2015 Comp Week 5 CODE: CA$H Administrative Stuff Send an email to trentnelson@college.harvard.edu if you have not been added
More informationTeacher Resource Bank
Teacher Resource Bank GCE Accounting Other Guidance: Layouts and Formulae ACCN1: Layouts ACCN2: Layouts and Formulae ACCN4: Layouts and Formulae (Updated July 2012) The Assessment and Qualifications Alliance
More informationMBA 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
More informationFinancial Planning for East Coast Yachts
Financial Planning for East Coast Yachts Prepared for East Coast Yachts Prepared by Dan Ervin, Mary-Ann Lawrence, Kevin Klepacki, Katie Wilson, Andrew Wright January 1, 2010 Table of Contents iii Table
More informationCMAC meeting Agenda paper 2 Debt vs Equity
17 October 2013 International Financial Reporting Standards CMAC meeting Agenda paper 2 Debt vs Equity Conceptual Framework The views expressed in this presentation are those of the presenter, not necessarily
More informationFinance 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
More informationInterest rate risk and how to manage it. University of Economics, 16/10/2014 Vladimir Sosovicka
Interest rate risk and how to manage it University of Economics, 16/10/2014 Vladimir Sosovicka 2 Content 1. Interest rate risk what is it? 2. Management of interest rate risk: Basic tools (bonds, BPV,
More informationShip Finance International Limited (NYSE: SFL) - Earnings Release. Reports second quarter results and quarterly dividend of $0.
Ship Finance International Limited (NYSE: SFL) - Earnings Release Reports second quarter results and quarterly dividend of $0.55 per share Ship Finance International Limited ( Ship Finance or the Company
More informationUsing 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
More informationUsing Financial Ratios: Interested Parties
Using Financial Ratios: Interested Parties Ratio analysis involves methods of calculating and interpreting financial ratios to assess a firm s financial condition and performance. It is of interest to
More informationTrade Date The date of the previous trading day. Recent Price is the closing price taken from this day.
Definition of Terms Price & Volume Share Related Institutional Holding Ratios Definitions for items in the Price & Volume section Recent Price The closing price on the previous trading day. Trade Date
More information3 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
More informationFinancial 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
More informationConsolidated 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
More informationCreating a Successful Financial Plan
Creating a Successful Financial Plan Basic Financial Reports Balance Sheet - Estimates the firm s worth on a given date; built on the accounting equation: Assets = Liabilities + Owner s Equity Income Statement
More informationRatio 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
More informationWorking Capital and the Financing Decision C H A P T E R S I X
Working Capital and the Financing Decision C H A P T E R S I X Limited 2000 Figure 6-1a The nature of asset growth A. Stage I: Limited or no Growth PPT 6-1 Dollars Temporary current assets Capital assets
More informationProspective Analysis REVIEW
Prospective Analysis REVIEW Prospective analysis is the final step in the financial statement analysis process. It includes forecasting of the balance sheet, income statement and statement of cash flows.
More informationEquity per share (NOK) 147 123 131 Equity ratio 39 % 38 % 36 % Non-current net asset value per share (NOK) (EPRA NNNAV) 2) 184 152 165
REPORT FOR Q2 AND THE FIRST 6 MONTHS OF 2015 KEY FIGURES Amounts in NOK million Q2 2015 Q2 2014 30.06.15 30.06.14 2014 Net rental income 501 450 1 005 904 1 883 Fair value adjustments in investment properties
More informationRatios 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
More informationTD Mutual Funds Fund Profiles
TD Mutual Funds Fund Profiles U.S. Equity Funds TD North American Dividend Fund TD U.S. Blue Chip Equity Fund TD U. S. Quantitative Equity Fund TD U.S. Large-Cap Value Fund TD U.S. Large-Cap Value Currency
More informationNon-GAAP Financial Measures. Second Quarter and First Half of Fiscal 2014. siemens.com. Energy efficiency. Intelligent infrastructure solutions
Energy efficiency Next-generation healthcare Industrial productivity Intelligent infrastructure solutions Non-GAAP Financial Measures Second Quarter and First Half of Fiscal 2014 siemens.com second QUARTER
More informationCredit 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
More informationFundamental 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
More informationConsolidated 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,
More informationFUNDAMENTALS OF HEALTHCARE FINANCE. Online Appendix B Financial Analysis Ratios
3/27/09 FUNDAMENTALS OF HEALTHCARE FINANCE Online Appendix B Financial Analysis Ratios Introduction In Chapter 13 of Fundamentals of Healthcare Finance, we indicated that financial ratio analysis is a
More informationAn Introduction to Institutions, Management, & Investments
An Introduction to Institutions, Management, & Investments TEMTH EBITIQM HERBERT B. MAYO The College of New Jersey *\ SOUTH-WESTERN t% CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain
More informationFinancial 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
More informationConsolidated financial summary
1-8-1 Marunouchi Chiyoda-ku Tokyo 100-8289, Japan (URL http://www.daiwasmbc.co.jp/) Consolidated financial summary (For fiscal year ended March 31, 2005) April 27, 2005 (1)Consolidated Operating results
More informationFinancial 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,
More informationBUSINESS TOOLS. Understanding Financial Ratios and Benchmarks. Quick Definitions:
Understanding Financial Ratios and Benchmarks Historically, great production drove success in agricultural businesses. To maintain long-term success in today s volatile and highly competitive marketplace,
More informationThe SAVR Checklist for Analyzing Financials (Banks)
The SAVR Checklist for Analyzing Financials (Banks) LET S REMOVE THE BLACK BOX POPE@BRARIFUNDS.COM It s a black box. Too much risk. I don t understand banks. These are the common statements one hears with
More informationConstruction Economics & Finance. Module 6. Lecture-1
Construction Economics & Finance Module 6 Lecture-1 Financial management: Financial management involves planning, allocation and control of financial resources of a company. Financial management is essential
More informationCOMPANIES INTERPRETATION OF FINANCIAL STATEMENTS 13 MARCH 2014
COMPANIES INTERPRETATION OF FINANCIAL STATEMENTS 13 MARCH 2014 In this lesson we: Introduction Lesson Description Look at analysing financial statements and its purpose Consider users of financial statements
More informationEarnings Conference Call First Quarter Ended March 31, 2015
Earnings Conference Call First Quarter Ended March 31, 2015 Forward Looking Statements This presentation contains certain statements that may be deemed to be forward-looking statements within the meaning
More informationHEALTHCARE FINANCE: AN INTRODUCTION TO ACCOUNTING AND FINANCIAL MANAGEMENT. Online Appendix A Financial Ratios
HEALTHCARE FINANCE: AN INTRODUCTION TO ACCOUNTING AND FINANCIAL MANAGEMENT Online Appendix A Financial Ratios INTRODUCTION In Chapter 17, we indicated that ratio analysis is a technique commonly used to
More informationKuehne + Nagel International AG Analyst Conference Call Q1 Results 2014
Kuehne + Nagel International AG Analyst Conference Call Q1 Results 2014 April 14, 2014 Schindellegi, Switzerland Forward-Looking Statements This presentation contains forward-looking statements. Such statements
More informationPEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
BUY CMP 196.40 Target Price 225.00 STYLAM INDUSTRIES LIMITED Result Update (PARENT BASIS): Q2 FY16 DECEMBER 16 th. 2015 ISIN: INE239C01012 12 th h, 2013 Index Details Stock Data Sector Plastic Products
More information