CMA Part 2. Financial Decision Making
|
|
- Ralf Malone
- 6 years ago
- Views:
Transcription
1 CMA Part 2 Financial Decision Making
2 SU 7.1 Short-term Financing Basics Basis points = 1/100 th of a 1% 300 basis points = 3% Sources of short-term financing include: Market-based instruments Accounts Payable Commercial banks 2
3 SU 7.1 Short-term Financing Sources Spontaneous Forms of Financing Trade credit (A/P), 30, 60 or 90 day terms Example 2/10 net 30. 2% discount if paid within the first 10 days of invoice date or all if between days Accrued expenses Commercial banks, and Market-based instruments Continued 3
4 SU 7.1 Short-term Financing Sources (continued) Spontaneous Forms of Financing Trade credit (A/P), 30, 60 or 90 day terms Example 2/10 net 30. 2% discount if paid within the first 10 days of invoice date or all if between days Discount amount = Inv. Amt. X (1.0 Disc. %) Ø See example of discounted amount paid and also of the cost of not taking a discount 2% discount taken/forgone = approx % effective rate Continued 4
5 SU 7.1 Short-term Financing Short-term bank loans In addition to trade credit sources Increased risk May not renew Contractual restrictions Prime interest rate best customers only Effective Interest Rate on a Loan (see example) Net interest expense Usable funds 5
6 SU 7.1 Short-term Financing Simple interest loans Interest paid at the end of the term; stated rate is same as nominal is the same as the effective rate Total amount of interest is the loan amount times the stated rate 6
7 SU 7.1 Short-term Financing Discounted Loans require the interest to be paid at the beginning of the loan term and therefore increase the effective rate from the stated rate Amount needed (1.0 Stated rate) This is different from the total amount of interest in the loan, which is loan amount x stated rate 7
8 SU 7.1 Short-term Financing Loans with compensating balances increases effective interest rate Borrower have to maintain a balance of funds with the lender, therefore reducing the usable funds and therefore increasing the effective rate Lines of Credit with Commitment Fees Lender charges a (much smaller) fee on unused portion of line of credit 8
9 SU 7.1 Short-term Financing Market-based Instruments, include: Bankers acceptances Understand the who is the drawer Commercial paper Short-term, unsecured notes payable issued in large denominations by large corporations with high credit ratings Lower costs that bank loans Understand advantages and disadvantages 9
10 SU 7.1 Short-term Financing Secured Financing, by pledging: Receivables Inventory Chattel mortgage secured by personal property such as equipment Maturity Matching times the life of an asset with the debt instrument used to finance it 10
11 SU 7.2 Long-term Financing Leases long-term, contractual agreement The lessor (owner of property) allows the lessee (one using the property) the right to use the property for a stated time at a stated rate Can be a purchase-and-financing (capital lease) Long-term rental contract (operating lease) 11
12 SU 7.2 Long-term Financing Convertible Securities debt or pref. stock Contain provisions allowing the holder to convert to specified number of common stocks Stock Purchase Warrants call options on the corp. common stock. Allows holder to exchange the warrant plus specified cash for some number of common stock Retained Earnings cumulative accrual-basis income (net of prior dividends and amounts reclassified as additional paid-in capital from stock dividends) 12
13 SU 7.2 Long-term Financing Question 1 A major use of warrants in financing is to A. Lower the cost of debt. B. Avoid dilution of earnings per share. C. Maintain managerial control. D. Permit the buy-back of bonds before maturity 13
14 Correct Answer: A SU 7.2 Long-term Financing Question 1 Answer Warrants are long-term options that give holders the right to buy common stock in the future at a specific price. If the market price goes up, the holders of warrants will exercise their rights to buy stock at the special price. If the market price does not exceed the exercise price, the warrants will lapse. Issuers of debt sometimes attach stock purchase warrants to debt instruments as an inducement to investors. The investor then has the security of fixed-return debt plus the possibility for large gains if stock prices increase significantly. If warrants are attached, debt can sell at an interest rate slightly lower than the market rate. Incorrect Answers: B Outstanding warrants dilute earnings per share. They are included in the denominator of the EPS calculation even if they have not been exercised. C Warrants can, if exercised, result in a dilution of management s holdings. D A call provision in a bond indenture, not the use of warrants, permits the buyback of bonds. 14
15 SU 7.3 Activity Measures Another way to analyze liquidity is to focus on the management of key current assets, namely inventory and A/R. A manager successfully managing inventory and collecting A/R in a timely manner also will be improving liquidity. Operating activity analysis is done over a period of an operating cycle the time elapsed between when goods are acquired and when cash is received from the sale of the goods. Measures how quickly noncash assets are converted to cash. Over a period of time. Includes I/S data. The Balance Sheet data should always be an average
16 SU 7.3 Activity Measures A/R Turnover = Net credit sales Average accounts receivable Efficiency of A/R collections. High ratio : Customers pay promptly. Highly seasonal should use monthly A/R average.
17 SU 7.3 Activity Measures One of the assumption of this ratio is that sales occur evenly throughout the year, therefore average A/R can be estimated using the average of beginning and ending A/R balances. When sales are seasonal or uneven, the beginning and ending balances may not be indicative of the average A/R balance. This is one of the reasons that most retailers have a fiscal year ending on January 31 and not December 31, because the sales in that industry are seasonal.
18 SU 7.3 Activity Measures Factoring of Accounts Receivables Some firms, in attempt to raise cash, borrow using A/R as collateral. This is called factoring of accounts receivable and is done to avoid recording a payable or a liability. Doing this enables the firm to borrow cash without showing the corresponding liability; hence such transaction is called offbalance sheet financing.
19 SU 7.3 Activity Measures A/R turnover also can be analyzed in days instead of times Days Sales Outstanding (DSO) = Days in year A/R turnover Average collection period in days. May use 365, 360 or 300 days Compared to credit terms to determine if customers pay within terms.
20 SU 7.3 Activity Measures Inventory turnover = Cost of goods sold Average Inventory Measures efficiency of inventory management. High ratio : Quicker inventory turns Inventory not obsolete, not carrying excess. Highly seasonal should use monthly Inv. average. LIFO valuation not comparable to other methods. Inventory turnover is industry specific. Grocery vs. Concrete
21 SU 7.3 Activity Measures Days Sales in Inventory = Days in year Inventory turnover How many days sales are tied up in inventory.
22 SU 7.3 Activity Measures Any judgment regarding payment of current liabilities should be made in light of the degree of urgency of payment. Several measurements can be made to assess the company s policy in paying off current liabilities. Such analysis could be used by new suppliers to assess the timeliness and creditworthiness of the company.
23 SU 7.3 Activity Measures Payables Accounts Payable Turnover = Purchases Average A/P Highly seasonal should use monthly Payables average.
24 SU 7.3 Activity Measures Payables Days Purchases in Accounts Payable (DPO) = Days in year A/P turnover Compared to credit terms to determine if the firm is paying within terms.
25 SU 7.3 Activity Measures Payables Measurement of days purchases in accounts payable usually indicates the payment terms that the company has with its suppliers, assuming that the company is not in default on its payments. Analysts may find it impossible to determine credit purchases. A reasonable approximation is to substitute total purchases instead of credit purchases. Total purchases can be determined by adjusting the cost of goods sold by the changes in inventory balance. A large ratio would indicate that the company either has good relationship with its suppliers and enjoys liberal payment plan or is delinquent in making payments.
26 SU 7.3 Activity Measures Operating Cycle = DSI + DSO The amount of time to convert inventory to cash. ØSee Figure 2-2, Page 67
27 SU 7.3 Activity Measures Cash Cycle = Operating Cycle DPO Is the days that cash is tied up as another asset.
28 SU 7.3 Activity Measures (not in text) Fixed Assets Turnover Ratio = Net Sales Average Net PP&E How efficiently the company deploys its investment in plant assets to generate revenues. Higher turnover is preferable. Affected by the capital intensiveness of the company and its industry, by the age of the assets, and by depreciation method used.
29 SU 7.3 Activity Measures (not in text) Total Assets Turnover Ratio = Net sales Average total assets Higher turnover is preferable. Exclude assets that do not relate to sales. Ex: investments
30 Sample Financial Data
31
32 Calculate: Current Year Net Working Capital
33 Calculate: Current Year Net Working Capital Current Assets Current Liabilities $ = $370,000
34 Calculate: Current Year Current Ratio
35 Calculate: Current Year Current Ratio Current Assets / Current Liabilities 760 / 390 = 1.949
36 Calculate: Current Year Quick (Acid Test) Ratio
37 Calculate: Current Year Quick (Acid Test) Ratio Cash + Mkt Securities + Net Rec / Current Liabilities ( ) / 390 = 1.705
38 Calculate: Current Year Cash Ratio
39 Calculate: Current Year Cash Ratio Cash + Mkt Securities / Current Liabilities ( ) / 390 = 1.256
40 Calculate: Current Year Net Working Capital Ratio
41 Calculate: Current Year Net Working Capital Ratio Current Assets - Current Liabilities / Total Assets ( ) / 1,800 =.206
42 Calculate: CY AR Turnover * All sales are 365 day credit sales
43 Calculate: CY AR Turnover Net Credit Sales / Ave. AR 1,800 / (( ) /2) = 15.3
44 Calculate: CY DSO * All sales are 365 day credit sales
45 Calculate: CY DSO Days in Year / AR Turnover 365 / 15.3 = 23.9 Days
46 Calculate: CY Inventory Turnover * All sales are 365 day credit sales
47 Calculate: CY Inventory Turnover COGS / Ave. Inventory 1650 / (85 +55)/2 = 23.6
48 Calculate: CY DSI Days in Year / Inventory Turnover 365 / 23.6 = 15.5 Days
49 Calculate: CY AP Turnover Purchases *CY = $1,760,000 PY = $1,440,000
50 Calculate: CY AP Turnover Purchases / Ave AP $1,760 / ( ) /2 = 15.6
51 Calculate: CY DPO
52 Calculate: CY DPO Days in Year / AP Turnover 365 / 15.6 = 23.4 Days
53 Calculate: CY Operating Cycle
54 Calculate: CY Operating Cycle DSO + DSI = 39.4 Days
55 Calculate: CY Cash Cycle
56 Calculate: CY Cash Cycle Operating Cycle - DPO = 16.0 Days
57 Calculate: CY Fixed Asset Turnover Ratio
58 Calculate: CY Fixed Asset Turnover Ratio Net Sales / Ave PP&E $1,800 / ( )/2 = 2.05
59 Calculate: CY Total Asset Turnover Ratio
60 Calculate: CY Total Asset Turnover Ratio Net Sales / Ave Total Assets $1,800 / (1, ,600)/2 = 1.06
CMA Part 2 Financial Decision Making
CMA Part 2 Financial Decision Making Introduction to Essays on the CMA exam Study Unit 2 - Ratio Analysis Study Unit 3 Profitability Analysis and Analytical Issues (3.1 - Profitability Ratios only) Study
STUDY UNIT TWO FINANCIAL PERFORMANCE METRICS FINANCIAL RATIOS
STUDY UNIT TWO FINANCIAL PERFORMANCE METRICS FINANCIAL RATIOS 1 2.1 Liquidity Ratios.......................................................... 2 2.2 Leverage and Solvency Ratios..............................................
An-Najah National University. Prepared by Instructor: E.Shatha Qamhieh Course Title: Managerial Finance
An-Najah National University Prepared by Instructor: E.Shatha Qamhieh Course Title: Managerial Finance Current Liabilities Management Spontaneous liabilities: Financing that arises from the normal course
Georgia Banking School Financial Statement Analysis. Dr. Christopher R Pope Terry College of Business University of Georgia
Georgia Banking School Financial Statement Analysis Dr. Christopher R Pope Terry College of Business University of Georgia Introduction Objective My objective is to introduce you to the analysis of financial
CHAPTER 3. Topics in Chapter. Analysis of Financial Statements
CHAPTER 3 Analysis of Financial Statements 1 Topics in Chapter Ratio analysis DuPont equation Effects of improving ratios Limitations of ratio analysis Qualitative factors 2 Determinants of Intrinsic Value:
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
Learning Goal 1: Review accounts payable, the key components of credit terms, and the procedures for analyzing those terms.
Principles of Managerial Finance, 12e (Gitman) Chapter 15 Current Liabilities Management Learning Goal 1: Review accounts payable, the key components of credit terms, and the procedures for analyzing those
Top 8. Capstone Financial Ratios
Financial Ratio Review Top 8 Plus Capstone Financial Ratios Kenneth EA Wendeln 2012 KEAW v5 Top 8 Key Financial Ratios Profitability Liquidity Return on Owners Equity % Current Ratio # n.nn EPS Earnings
Week 14, Chap14 Accounting 1A, Financial Accounting
Week 14, Chap14 Accounting 1A, Financial Accounting Analyzing Financial Statements Instructor: Michael Booth Understanding The Business Return on an equity security investment Dividends Increase in share
Session 2, Sunday, April 2nd (1:30-5:00) v Association for Financial Professionals. All rights reserved. Session 3-1
Session 2, Sunday, April 2nd (1:30-5:00) v2.0 2014 Association for Financial Professionals. All rights reserved. Session 3-1 Chapters Covered Financial Accounting and Reporting: Part I, Domain B Chapter
How Well Am I Doing? Financial Statement Analysis
How Well Am I Doing? Financial Statement Analysis Chapter 16 McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Limitations of Financial Statement Analysis Differences
CHAPTER 3. Analysis of Financial Statements
CHAPTER 3 Analysis of Financial Statements 1 Topics in Chapter Ratio analysis Du Pont system Effects of improving ratios Limitations of ratio analysis Qualitative factors 2 Determinants of Intrinsic Value:
Financials. Lecture 7
Financials Lecture 7 1 Financial statements Income statement (P/L) Balance sheet Beginning Cash Flow statement Balance sheet Ending Changes in Shareholder Equities 2 Business Financial Flow Collection
AFP Financial Planning & Analysis Learning System Session 2, Sunday, April 2nd (1:30-5:00)
AFP Financial Planning & Analysis Learning System Session 2, Sunday, April 2nd (1:30-5:00) Chapters Covered Financial Accounting and Reporting: Part I, Domain B Chapter 7 Ratio Analysis: Part I, Domain
Chapter 3 Working with Financial Statements
Chapter 3 Working with Financial Statements This chapter is a continuation of Chapter 2. We use accounting numbers because of the unavailability of market numbers. We prefer to use market numbers. Common-Size
Analysis and Interpretation of Financial Statements
Chapter 23 Analysis and Interpretation of Financial Statements o Prepare comparative financial statements using horizontal analysis o Prepare comparative financial statements using vertical analysis o
BBPW3203 FINANCIAL MANAGEMENT II. Topic 1 Short-term Financing
BBPW3203 FINANCIAL MANAGEMENT II Topic 1 Short-term Financing January 2018 Content 1.1 Short-term financing 1.2 Current assets financing policy 1.3 Advantages and disadvantages of short-term financing
n Financial Statement Analysis n Dollar and Percentage Changes n Common Sized Statements n Ratio Analysis McGraw-Hill /Irwin McGraw-Hill /Irwin
14-1 Today s Agenda Management Accounting Lecture 3 (Chapter 14) Financial Statement Analysis Bangor University Transfer Abroad Programme n Financial Statement Analysis n Dollar and Percentage Changes
Excellence in. Management
Excellence in Financial Management Course 1: Evaluating Financial Performance Prepared by: Matt H. Evans, CPA, CMA, CFM Chapter 1: Return on Equity Why use ratios? It has been said that you must measure
Understanding Where You Stand
SMALL BUSINESS Access to Opportunity Understanding Where You Stand A Simple Guide to Your Company s Financial Statements Reading Your Statements Balance Sheets Income Statements Ratios Cash Flow Statements
FALCON ENERGY GROUP LIMITED Registration No G
FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE NINE MONTHS ENDED 31 MARCH 2018 PART 1 INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS 1(a)(i) A
The Directors of Plastoform Holdings Limited wish to announce the following unaudited results of the Group for full year ended 31 December 2017.
(Incorporated in Bermuda) (Co. Reg. No: 34171) UNAUDITED RESULTS FOR FULL YEAR ENDED 31 DECEMBER 2017 The Directors of Plastoform Holdings Limited wish to announce the following unaudited results of the
EXAM #2 SAMPLE PROBLEMS
EXAM #2 SAMPLE PROBLEMS (Lessons 5-10) Use the following information to respond to problems 1-6 assuming Zee Corp. maintains their inventory records on a perpetual basis: 1/12 Zee Corp., a wholesaler of
A/P Turnover (Activity)
A/P Turnover (Activity) 1a COGS Avg A/P 1b A/R Turnover (Activity) 2a Net Credit Sales Avg Net Receivables [A/R quality & success in collecting outstanding A/R] 2b A/R Turnover in Days (Activity) 3a Avg
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding
Disciplined thinking focuses inspiration rather than constricts it. ~ Anonymous
Ratio Analysis Disciplined thinking focuses inspiration rather than constricts it. ~ Anonymous Ratio Analysis compares significant numbers from your financial statements. Rather than focusing on specific
Is the company able to meet its current debt obligations? Are the company s assets being managed efficiently? Are working capital accounts at
Is the company able to meet its current debt obligations? Are the company s assets being managed efficiently? Are working capital accounts at suitable levels? Is the company profitable? How does the company
CFIN4 Chapter 2 Analysis of Financial Statements
1. The income statement measures the flow of funds into (i.e. revenue) and out of (i.e. expenses) the firm over a certain time period. It is always based on accounting data. Income statement 2. The balance
Chapter 4. Principles Used in this Chapter 1.Why Do We Analyze Financial Statements 2.Common Size Statements Standardizing Financial Information
Chapter 4 Financial Analysis: Sizing up Firm Performance Learning Objectives Principles Used in this Chapter 1.Why Do We Analyze Financial Statements 2.Common Size Statements Standardizing Financial Information
Financial & Managerial Accounting Practice with Ratios and Analysis
Financial & Managerial Accounting Practice with Ratios and Analysis A company had the following income statement for the year and the balance sheet accounts at the end of the year. Use the information
The Siburg Company, LLC
The Siburg Company, LLC Cash Preservation How A Business Survives! by Daniel R. Siburg, CPA, CVA and Howard W. Fisher Mergers and Acquisitions Business Development Finance and Operations Cash Management
Week-2 FINC Analysis of Financial Statements. Balance Sheets
Dr. Ahmed FINC 5000 Week-2 Name Analysis of Financial Statements Balance Sheets Assets 2003 2004 2005e Cash $ 9,000 $ 7,282 $ 14,000 Short-Term Investments. 48,600 20,000 71,632 Accounts Receivable 351,200
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
Chapter 8 Working Capital Management
Chapter 8 Working Capital Management Long & Short Term Assets & Liabilities Current Assets: Cash Marketable Securities Prepayments Accounts Receivable Inventory Fixed Assets: Investments Plant & Machinery
Singapore Myanmar Investco Limited (Company Registration No Z)
Unaudited Full Year Financial Statements and Dividend Announcement for the Year Ended 31 March 2017 PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF- YEAR AND FULL RESULTS
Basic Financial Analysis and Valuation
30 Sep 2017 Basic Financial Analysis and Valuation By Puah Soon Lim, CFA 2 Disclaimer The information in this workshop is for general information purposes only and is provided on an as is basis without
DUCA FINANCIAL SERVICES CREDIT UNION LTD.
Consolidated Financial Statements (In Canadian dollars) DUCA FINANCIAL SERVICES CREDIT UNION LTD. KPMG LLP Bay Adelaide Centre 333 Bay Street, Suite 4600 Toronto ON M5H 2S5 Canada Tel 416-777-8500 Fax
CHAPTER 2 ANALYSIS OF FINANCIAL STATEMENTS
TRUE/FALSE CHAPTER 2 ANALYSIS OF FINANCIAL STATEMENTS 1. The income statement measures the flow of funds into (i.e. revenue) and out of (i.e. expenses) the firm over a certain time period. It is always
FALCON ENERGY GROUP LIMITED Registration No G
FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 PART 1 INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS 1(a)(i)
where you stand A Simple Guide to Your Company s
UNDERSTANDING where you stand A Simple Guide to Your Company s Financial Statements SMALL BUSINESS DEVELOPMENT CENTER OF HAMPTON ROADS, INC. Where business comes to talk business. HAMPTON ROADS CHAMBER
CFA-Level-I. Financial. Chartered Financial Analyst Level I (CFA Level I)
Financial CFA-Level-I Chartered Financial Analyst Level I (CFA Level I) Download Full Version : http://killexams.com/pass4sure/exam-detail/cfa-level-i QUESTION: 566 For which of the following ways of manipulating
ACCOUNTING FOR NON- ACCOUNTANTS UNDERSTANDING THE BASICS OF ACCOUNTING
ACCOUNTING FOR NON- ACCOUNTANTS UNDERSTANDING THE BASICS OF ACCOUNTING LEARNING OBJECTIVE To guide and assist you in your decision making processes, To allow you to participate actively in the financial
Accounting Functions. The various financial statements are- Income Statement Balance Sheet
Accounting Functions The accounting system provides a structure of maintaining details of business transactions that represent the finances of the organization. The various financial statements are- Income
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period
Short Term Loans and Lines of Credit
Short Term Loans and Lines of Credit Disadvantaged Business Enterprise (DBE) Supportive Services Program The contents of this training course reflect the views of the author who is responsible for the
CHAPTER 12 Financial Planning and Forecasting Financial Statements
12-1 CHAPTER 12 Financial Planning and Forecasting Financial Statements Financial planning Additional Funds Needed (AFN) formula Pro forma financial statements Sales forecasts Percent of sales method Financial
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF- YEAR AND FULL YEAR RESULTS
Unaudited Third Quarter 2018 Financial Statements PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF- YEAR AND FULL YEAR RESULTS 1(a) An income statement and statement of
Financing Technology: Trends in debt & equity termsheets
Financing Technology: Trends in debt & equity termsheets Dan Allred Silicon Valley Bank (617) 796-6904 dallred@svb.com Twitter: @dgallred http://danallred.tumblr.com Technology Risk vs. Market Risk Funding
FAQ: Financial Ratio Analysis
Question 1: What is horizontal analysis of financial statement data? Answer 1: Horizontal analysis is a method of financial ratio analysis. Horizontal analysis is comparing each item on the financial statements
Rocco Sabino MBA, CPA
Rocco Sabino MBA, CPA Rocco.Sabino@Stonybrook.edu Agenda: I. Understanding Financial Information Ø Financial Statements q Income Statement It s all about earning income How does Human Resource (HR) affect
WEEK 10 Analysis of Financial Statements
WEEK 10 Analysis of Financial Statements Learning Objectives 1. Organize a systematic financial statements analysis using common-size financial statements and ratio analysis. 2. Recognize the potential
Pennsylvania Small Business Development Centers. Understanding Financial Statements
Understanding Financial Statements The SBDC Program is a partnership funded by the Commonwealth of, Department of Community and Economic, the U. S. Small Business Administration and participating colleges
Professional Designation Ratios: Formulas & Definitions Used in Credit Risk Assessment
Professional Designation Ratios: Formulas & Definitions Used in Credit Risk Assessment Profitability Ratios Measure management's ability to control expenses and to earn a return on the resources committed
UNAUDITED HALF-YEAR FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 MARCH 2018
1(a)(i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately
ANALYSIS OF COMPANY FINANCIAL STATEMENTS 09 MAY 2013
ANALYSIS OF COMPANY FINANCIAL STATEMENTS 09 MAY 2013 Lesson Description In this lesson we: Focus on ratios affection liquidity, solvency, risk & returns Discuss ratio calculations & relevant comments Key
Presented by SCOTT TRANSUE
Presented by SCOTT TRANSUE Cash vs. accrual Key definitions Balance sheets Income statements Cash flow statements Break-even analysis Today s Agenda Ratios Recognizes transactions when they occur Recognizes
Note 1: Basis of Presentation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1: Basis of Presentation Bank of Montreal ( the bank ) is a chartered bank under the Bank Act (Canada) and is a public company incorporated in Canada. We
ANSWER SHEET EXAMINATION #2
ANSWER SHEET EXAMINATION #2 1) D 2) B 26) D 3) C 27) B 4) A 28) B 5) D 29) C 6) D 30) A 7) D 31) B 8) C 32) D 9) D 33) D 10) B 34) D 11) A 12) A 13) D 14) C 15) A 16) C 17) B 18) B 19) C 20) B 21) B 22)
SENAO NETWORKS, INC. AND SUBSIDIARIES
SENAO NETWORKS, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2015 AND 2014 ------------------------------------------------------------------------------------------------------------------------------------
ANALYSIS OF FINANCIAL STATEMENTS
ANALYSIS OF FINANCIAL STATEMENTS 1. Basic concept of financial statement analysis 2. Liquidity ratios 3. Asset management ratios 4. Debt management ratios 5. Profitability ratios 6. Market value ratios
Presented to the BCCA/MFM Nov 15, 2011 Linda J Powell Cablevision Media Sales
Presented to the BCCA/MFM Nov 15, 2011 Linda J Powell Cablevision Media Sales Improve policies and procedures Improve financial performance Focus employee training and support Increase cash flow Reduce
Badger Daylighting Ltd. Interim Condensed Consolidated Financial Statements (Unaudited) For the three months ended March 31, 2018 and 2017
Badger Daylighting Ltd. Interim Condensed Consolidated Financial Statements (Unaudited) For the three months ended March 31, 2018 and 2017 Interim Condensed Consolidated Statement of Financial Position
Consolidated Financial Statements. Element Financial Corporation December 31, 2013
Consolidated Financial Statements Element Financial Corporation INDEPENDENT AUDITORS' REPORT To the Shareholders of Element Financial Corporation We have audited the accompanying consolidated financial
MANAGEMENT S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Purpose. Values. Character.
MANAGEMENT S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION 2016 Purpose. Values. Character. Management s Discussion and Analysis of Results of Operations and Financial Condition
Enercare Solutions Inc. Condensed Interim Consolidated Financial Statements. For the three and nine months ended September 30, 2018 and 2017
Enercare Solutions Inc. Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2018 and 2017 Dated November 19, 2018 Enercare Solutions Inc. Condensed Interim
Nike, Inc. Financial Statement Analysis CHAPTER 17
CHAPTER 17 AP Photo/Matt York Financial Statement Analysis Nike, Inc. J ust do it. These three words identify one of the most recognizable brands in the world, Nike. While this phrase inspires athletes
Neo Solar Power Corp. and Subsidiaries
Neo Solar Power Corp. and Subsidiaries Consolidated Financial Statements for the Three Months Ended and and Independent Auditors Review Report NEO SOLAR POWER CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE
Consolidated Financial Statements. Element Financial Corporation December 31, 2015
Consolidated Financial Statements Element Financial Corporation INDEPENDENT AUDITORS' REPORT To the Shareholders of Element Financial Corporation We have audited the accompanying consolidated financial
John A. Jaeger, CCE, MBA
John A. Jaeger, CCE, MBA Session Outline General Info Review Company Introduction & Industry Review Company Financials Ratio Analysis Discussion Strengths & Weaknesses Decision Extend Credit Management
a [state of organization/incorporation] [non-profit 501(c)(_) corporation / C-/Scorporation / limited liability company]
Term Sheet Revolving Line of Credit (ARIF) [This is a form; please delete all brackets and replace/delete all text within the brackets. FOR ROLLOVERS, PLEASE TRY TO DISTINGUISH TERMS THAT ARE CHANGING
FEEDBACK TUTORIAL LETTER 1ST SEMESTER 2017 ASSIGNMENT 1 FINANCIAL ACCOUNTING 310 [GFA711S]
FEEDBACK TUTORIAL LETTER 1ST SEMESTER 2017 ASSIGNMENT 1 FINANCIAL ACCOUNTING 310 [GFA711S] 1 ASSIGNMENT ONE QUESTION 1 (IAS8: Changes in Accounting Estimates) 32 marks Assumption 1: Residual value reduced
An-Najah National University. Prepared by Instructor: E.Shatha Qamhieh Course Title: Managerial Finance
An-Najah National University Prepared by Instructor: E.Shatha Qamhieh Course Title: Managerial Finance Working Capital Fundamentals Short-term financial management: Management of current assets and current
Session 4, Module Three:
Chapter 8: Introduction to Working Capital Management Session 4, Module Three: Working Capital Management v4.0 2013 Association for Financial Professionals. All rights reserved. Session 4: Module 3, Chapter
Statement of Management s Responsibility for Financial Information
Statement of Management s Responsibility for Financial Information Management of Bank of Montreal (the bank ) is responsible for the preparation and presentation of the annual consolidated financial statements,
Statement of Management s Responsibility for Financial Information
Statement of Management s Responsibility for Financial Information Management of Bank of Montreal (the bank ) is responsible for the preparation and presentation of the annual consolidated financial statements,
Lesson 9 Debt and Equity Financing
Lesson 9 Balance Sheet Lesson 9 Debt and Equity Financing Assets: Current Assets: Accounts receivable Less: Allowance for Uncollectible A/R Inventories Prepaid Expenses Long-Term Assets: Property and Equipment
MIDTERM REVIEW
15.515 MIDTERM REVIEW Review of Key Concepts Revenue Recognition Accounts Receivable Inventory (LIFO vs. FIFO) PP&E Statement of Cash Flows Problems E4-5 P6-4 P7-9 P9-8 P14-14 Checklist Famous Last Words
Notes to Consolidated Financial Statements Hitachi Chemical Co., Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2005, 2004 and 2003
Notes to Consolidated Financial Statements Hitachi Chemical Co., Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2005, 2004 and 2003 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT
EFI Q Earnings Call. January 25, 2017
EFI Q4 2016 Earnings Call January 25, 2017 Safe Harbor For Forward-Looking Statements Certain statements in this presentation are forward-looking statements within the meaning of Section 27A of the Securities
TOTAL TRAINING SOLUTIONS
TOTAL TRAINING SOLUTIONS Global Cash Flow Analysis Get Global by Understanding Global Cash Flow Jeffery W. Johnson Bankers Insight Group jeffery.johnson@bankers-insight.com 770-846-4511 September 2015
Looking for the right business finance? We re here to help.
Looking for the right business finance? We re here to help. Good finance is good for business. Financing your business with one of the many different products available across Australia s commercial lending
Accounting & Understanding Financial Statements Disadvantaged Business Enterprise (DBE) Supportive Services Program
Accounting & Understanding Financial Statements Disadvantaged Business Enterprise (DBE) Supportive Services Program The contents of this training course reflect the views of the author who is responsible
EFI Q Earnings Call. April 23, 2015
EFI Q1 2015 Earnings Call April 23, 2015 Safe Harbor For Forward-Looking Statements Certain statements in this presentation are forward-looking statements within the meaning of Section 27A of the Securities
Financial Instruments
IFRS 9 Financial Instruments In April 2001 the International Accounting Standards Board (the Board) adopted IAS 39 Financial Instruments: Recognition and Measurement, which had originally been issued by
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS
Listed companies must provide the information required by Appendix 7.2 of the Listing Manual. Adequate disclosure should be given to explain any material extraordinary item either as a footnote of the
PRINT Name: Brief Answer Key.
Financial & Managerial Accounting Fall 2009 Exam 2 General Instructions. Make sure you write answers clearly. Make sure to show your work when appropriate partial credit can be given for work shown. Finally,
Full Year Financial Statement Announcement for the Year Ended 30 June 2018
LUXKING GROUP HOLDINGS LIMITED (Incorporated in Bermuda) Full Year Financial Statement Announcement for the Year Ended 30 June 2018 PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 &
CHAPTER 10 The Financial Plan: Projecting Financial Requirements
Part 3 Developing the New Venture Business Plan CHAPTER 10 The Financial Plan: Projecting Financial Requirements Longenecker Moore Petty Palich 2008 Cengage Learning. All rights reserved. PowerPoint Presentation
CHART 4.1 THE SEVEN BASIC FUNCTIONS FOR EXTENDING CREDIT
CHART 4.1 THE SEVEN BASIC FUNCTIONS FOR EXTENDING CREDIT What are the seven essential functions in the extension of credit that all lenders must perform or cause to have performed? The configuration of
GENWORTH MI CANADA INC.
Condensed Consolidated Interim Financial Statements (In Canadian dollars) GENWORTH MI CANADA INC. Condensed Consolidated Interim Statements of Financial Position (In thousands of Canadian dollars) Assets
EFI Q Earnings Call. July 20, 2015
EFI Q2 2015 Earnings Call July 20, 2015 Safe Harbor For Forward-Looking Statements Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities
Module 4. Analyzing and Interpreting Financial Statements
Module 4 Analyzing and Interpreting Financial Statements Analysis Structure Return on Equity Return on equity (ROE) is computed as: Operating Return (RNOA) The income statement reflects operating activities
1 Significant Accounting and Reporting Policies
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ORIX Corporation and Subsidiaries 1 Significant Accounting and Reporting Policies In preparing the accompanying consolidated financial statements, ORIX Corporation
PACCAR Inc (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended
Badger Daylighting Ltd. Interim Condensed Consolidated Financial Statements (Unaudited) For the three and six months ended June 30, 2018 and 2017
Badger Daylighting Ltd. Interim Condensed Consolidated Financial Statements (Unaudited) For the three and six months ended June 30, 2018 and 2017 Interim Condensed Consolidated Statement of Financial Position
CATERPILLAR FINANCIAL SERVICES CORPORATION (Exact name of Registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year
Corporate Accounting Recitation 3. June 18, 2004
15.511 Corporate Accounting Recitation 3 June 18, 2004 Why do we need CF/S? Accrual accounting is often based upon subjective judgments that can introduce measurement error and uncertainty into the reported
FINANCIAL STATEMENT ANALYSIS-INTERPRETING THE NUMBERS CORRECTLY! Presented by: Osburn & Associates, LLC
FINANCIAL STATEMENT ANALYSIS-INTERPRETING THE NUMBERS CORRECTLY! Presented by: Osburn & Associates, LLC Author/ Instructor DAVID L. OSBURN, MBA, CCRA David Osburn is the founder of Osburn & Associates,
Learning Objectives. Chapter 5. Balance Sheet. Learning Objective 1, 2, 3. Liquidity. Chapter Overview. Balance Sheet and Statement of Cash Flows
Chapter 5 Balance Sheet and Statement of Cash Flows Campbell, Coca-Cola, American Airlines, Borders Learning Objectives 1. Explain uses, limitations of a balance sheet 2. Identify major classifications
Financial Report. Translation adjustments 7,666 34,450 (1,631) 3,240 3,860
Ch. 8 Financial Status Condensed Financial Statements for the Past Five Years 1. Balance sheet The Company s condensed balance sheet for the past five years and explanation of significant changes are as