Part 2 Section A.2. Financial ratios 財務比率

Part2 – Section A.2. Financial ratios 財務比率Section A 財務諸表分析

Financial Ratio Analysis 財務比率分析

Liquidity 流動性

\( \displaystyle \bf Current~ratio = \frac{current~assets}{current~liabilies} \)

\( \displaystyle \bf Quick~ratio = \frac{cash + marketable~securities + accounts~receivable}{current~liabilies} \)

*Quick ratio = acid test ratio

\( \displaystyle \bf Cash~ratio = \frac{cash + marketable~securities}{current~liabilies} \)

\( \displaystyle \bf Cash~flow~ratio = \frac{operating~cash~flow}{current~liabilies} \)

\( \displaystyle \bf Net~working~capital~ratio = \frac{net~working~capital}{total~assets} \)

Leverage 健全性

\( \displaystyle \bf Degree~of~financial~leverage = \frac{\%~ change~in~net~income}{\%~change~in~EBIT} \)

\( \displaystyle \bf or = \frac{EBIT}{EBT} \)

\( \displaystyle \bf Degree~of~operating~leverage = \frac{\%~ change~in~EBIT}{\%~change~in~sales} \)

\( \displaystyle \bf or = \frac{contribution~margin}{EBIT} \)

Operating leverage is the extent to which a firm’s operations employ fixed operating expenses. The greater the proportion of fixed expenses used to produce a product, the greater the degree of operating leverage.

The greater the degree of operating leverage, the greater the change in operating income (loss) relative to a small fluctuation in sales volume.

Thus, there is a higher degree of variability in operating income if operating leverage is high. The greater the operating leverage and the resultant variability in operating income, the greater the degree of business risk.

\( \displaystyle \bf Financial~leverage~ratio = \frac{assets}{equity} \)

\( \displaystyle \bf Debt~to~equity~ratio = \frac{total~debt}{equity} \)

\( \displaystyle \bf Long-term~debt~to~equity~ratio = \frac{total~debt – current~liabilities}{equity} \)

\( \displaystyle \bf Debt~to~total~assets~ratio = \frac{total~debt}{total~assets} \)

\( \displaystyle \bf Fixed~charge~coverage = \frac{earnings~before~fixed~charges~and~taxes}{FIRL} \)

*FIRL: fixed charges fixed charges include interest, required principal repayment, and leases

\( \displaystyle \bf Interest~coverage~(times~interest~earned) = \frac{EBIT}{interest~expense} \)

\( \displaystyle \bf CF~to~fixed~charges = \frac{cash~from~operations + fixed~charges + tax}{fixed~charges} \)

*Note: cash from operations is after-tax.

Activity 効率性

\( \displaystyle \bf Accounts~receivable~turnover = \frac{credit~sales}{average~gross~accounts~receivable} \)

\( \displaystyle \bf Inventory~turnover = \frac{cost~of~goods~sold}{average~inventory} \)

\( \displaystyle \bf Accounts~payable~turnover = \frac{credit~purchases}{average~accounts~payable} \)

\( \displaystyle \bf Days~sales~in~receivables = \frac{average~accounts~receivable}{(credit~sales \div 365)} \)

\( \displaystyle \bf or = \frac{365}{accounts~receivable~turnover} \)

\( \displaystyle \bf Days~sales~in~inventory = \frac{average~inventory}{(cost~of~sales \div 365)} \)

\( \displaystyle \bf or = \frac{365}{inventory~turnover} \)

\( \displaystyle \bf Days~purchases~in~payables = \frac{average~payables}{(purchase \div 365)} \)

\( \displaystyle \bf or = \frac{365}{payables~turnover} \)

\( \displaystyle \bf Operating~cycle = days~sales~in~receivables + days~sales~in~inventory \)

\( \displaystyle \bf Cash~cycle = Operating~cycle – days~purchase~in~payables \)

\( \displaystyle \bf Total~assets~turnover = \frac{sales}{average~total~assets} \)

\( \displaystyle \bf Fixed~assets~turnover = \frac{sales}{average~net~plant,~property~and~equipment} \)

Profitability 収益性

\( \displaystyle \bf Gross~profit~margin~percentage = \frac{gross~profit}{sales} \)

\( \displaystyle \bf Operating~profit~margin~percentage = \frac{operating~income}{sales} \)

\( \displaystyle \bf Net~profit~margin~percentage = \frac{net~income}{sales} \)

\( \displaystyle \bf EBITDA~margin = \frac{EBITDA}{sales} \)

\( \displaystyle \bf ROA = \frac{net~income}{average~total~assets} \)

\( \displaystyle \bf ROE = \frac{net~income}{average~equity} \)

Market 株式業績評価

\( \displaystyle \bf Market~to~book~ratio= \frac{current~stock~price}{book~value~per~share} \)

*\( \displaystyle Book~value~per~share = \frac{total~stockholder’s~equity – preferred~equity}{number~of~common~shares~outstanding} \)

\( \displaystyle \bf Price~earnings~ratio = \frac{market~price~per~share}{EPS} \)

\( \displaystyle \bf Price~to~EBITDA~ratio = \frac{market~price~per~share}{EBITDA~per~share} \)

\( \displaystyle \bf Basic~EPS = \frac{net~income – preferred dividends}{weighted~average~common~shares~outstanding} \)

(Number of shares outstanding is weighted by the number of months shares are outstanding)

\( \displaystyle \bf Diluted~EPS = \frac{net~income – preferred dividends}{diluted~weighted~average~common~shares~outstanding} \)

(Diluted EPS adjusts common shares by adding shares that may be issued for convertible securities and options)

\( \displaystyle \bf Earnings~yield = \frac{EPS}{current~market~price~per~common~share} \)

\( \displaystyle \bf Dividend~yield = \frac{annual~dividends~per~share}{market~price~per~share} \)

\( \displaystyle \bf Dividend~payout~ratio = \frac{common~dividends}{earnings~available~to~common~stockholders} \)

\( \displaystyle \bf TSR = \frac{(ending~stock~price – beginning~stock~price) + annual~dividends~per~share}{beginning~stock~price} \)

*TSR: Total shareholders return

計算問題

Days Purchases in Payables

In order to calculate Days Purchases in Payables, it is first necessary to calculate credit purchases. Credit Purchases can be approximated using the following calculation if all inventory purchases are made on credit.

Ending inventory balance$30,000
+ Cost of Goods Sold$250,000
– Beginning Inventory balance$20,000
= Purchases$260,000

Dividends per share

● 今年の配当額を先に求めさせる問題

Total cash dividends paid in 2014 were $12,500.
Retained earnings in 2014 were $15,000
Retained earnings in 2015 were $34,000
Net income in 2015 was $40,000
Retained earnings, Dec 31, 2014$15,000
Plus: Net income, 2015$40,000
Less: Retained earnings, Dec 31 2015$34,000
Equals: Dividends paid, 2015$21,000
※ 2014の配当額はダミー情報

論点

Advantages to management of financial ratios マネジメントへの利点

Among the management accountants’ responsibilities is the measurement of economic events and transactions and the communication of information about them to interested parties including management.

Financial ratios are a part of this communication process that includes analysis, interpretation, and evaluation of the financial statements.

Ratios display a relationship between various elements of financial data and are used to assist management in interpreting and explaining financial statements and can be effective tools in evaluating a company’s liquidity, debt position and profitability.

Financial ratios are an important part of evaluating a company’s past performance and are useful in projecting its financial future.

レバレッジ以外に新製品立ち上げ時に留意すべき点

  • Variability of uncertainty with respect to demand, both quantity and selling price.
  • The ability to produce and market the new product quickly.
  • The ability to discontinue the production and marketing of the new product while incurring the least amount of loss.

コメント