金融学教学课件bodie2echapter03.ppt

Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,1,Chapter 3:Managing Financial Health and Performance,ObjectivesPurpose of Financial PlanningWorking Capital Management,付队抢鄂炊捎亥瓤稗验裹举境灿磐抡苫吝芹闸沸获够钟譬弧猖付艺杜痕拒金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,2,Chapter 3 Contents,3.1 Functions of Financial Statements3.2 Review of Financial Statement3.3 Market values v.Book Values3.4 Accounting v.Economic Measures of Income3.5 Return on Shareholders v.Return on Book Equity3.6 Analysis Using Financial Ratios,3.7 The Financial Planning Process3.8 Constructing a Financial Planning Model3.9 Growth&the Need for External Financing3.10 Working Capital Mgmt.,惟札鳃推填擎搜鲸寡炙诽棉车孝掠沃哆朝魁遮紧环捞评辅剁术两歉耘靛詹金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,3,3.1 Functions of Financial Statements,Financial Statements:Provide information to the owners&creditors of a firm about the current status and past performanceProvide a convenient way for owners&creditors to set performance targets&to impose restrictions of the managers of the firmProvide a convenient templates for financial planning,场洽来烁锹淳饭冠释心俊怨鸽骗苍纶摘肚佑轧亏都檄戳敖袜灾楔晨羡烧叮金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,4,3.2 Review of Financial Statements,Balance SheetsIncome StatementsCash-Flow Statements,列邢椭缮修瘪族溯筐绅魁谍惑孪港柬晋癌孽梭冲孕艇科填殃匿撬撅格喘覆金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,5,The Balance Sheet,Summarizes a firms assets,liabilities,and owners equity at a moment in timeAmounts measured at historical values and historical exchange ratesPrepared according to GAAP,Generally Accepted Accounting PrinciplesGAAP modified occasionally by the Financial Accounting Standards BoardExchange-listed companies must comply with Securities and Exchange Commission(SEC)rules,降膜乌迪惰无齿苟莽纹涎价菊锑填销匿堆帕色肆辱著惧屈兢卷李怎蚀犹狭金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,6,The Balance Sheet,Major Divisions:AssetsCurrent assets(less than a year)Long-term assets(longer than a year)DepreciationLiabilities and Stockholders EquityLiabilitiesCurrent LiabilitiesLong-term debtEquity,酉鲸愁同祁咨掩漏实撮鸯棠花颊图筋彤阑韦共瀑穿橇雇毅稚疗俯淆息陌抗金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,7,GPC Balance Sheet on December 31,掳提覆杰著傅僳喧扬踏谨柯湛瞄憾似格惹烧哼烤卵俘辣凤粪铝哉下腕嗽挎金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,8,Important Reminders,Retained earnings are not added to the cash balance in the balance sheet,but are added to shareholders equityAccounts show historical values,not market valuesThe shareholders equity may be much higher or lower than the market value of the firm The value of the firms land may have halved or doubled,but this would not be reported in the balance sheet,差冲汝拙惦盈友罚肘尝临饮薄鸟硕拔龙掘心记雄副秤韭振专炙烫汁素涵慎金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,9,The Income Statement,Summarizes the profitability of a company during a time periodMajor Divisions:Revenue&cost of goods sold Gross marginGeneral selling and administrative expenses(GS&A)Operating incomeDebt service Taxable incomeCorporate Taxes Net income,红邦芭蓟皮剩买尔钥乔猖阵咋群衅诸斟耗渍峨孽慈缩带冯置贮烁椰御韦掳金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,10,吻网毒缸距割库有莎燥葫狞辊余隋掂准类猩粉善碳辊澈翰肢胳暑予毯烙榆金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,11,The Cash-Flow Statement,Show the cash that flowed into and from a firm during a time periodFocuses on a firms cash situation A firm may be profitable and short of cashUnlike the balance sheet and income statement,cash flow statements are independent of accounting methods The IRS uses accounting income to compute tax,so accounting rules have a second order effect on cash flows through taxes,庞穴淮舜只葛苟涂熊料息卤芍夕网釜抹毋病驻苗儿软冗蹦码雌已尺龄淋陇金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,12,GPC Cash Flow Statement for 20*1,勃疆拢喉誓埃倚祁脂绷萌转阜扰乒锐韩蚁滤贰窜靛匡勺弛途痊妻炊辗荔蛊金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,13,委午扫狙眨桂还膛扦畸慕汞频糠批嵌挎址臭症憾控愉狂脑擅羌犹再非爽坐金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,14,Notes to Financial Statements,Some of the specific items commonly found in the notes:Explanation of accounting methods used,e.g.straight-line versus accelerated depreciation charges,restating prior year results using new accounting standards.Details of assets and liabilitiesDetails of equity structureDocumentation of changes in operations,e.g.acquisitions,divestitures.Documentation of off-balance-sheet items,which can profoundly affect its financial condition,such as derivative contracts.,立掠晃尖郴毯者猴岩听级嫂倚轿擞江蛊厄吼皮郭唤勤欧矫瓢俊蚀柯穗殿霸金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,15,3.3 Market Values v.Book Values,Book value:the official accounting value of assets and shareholders equity.Market value:the price in stock market,which investors are willing to pay for.Two reasons why the two values differ:The book value does not include all of a firms assets and liabilities,namely intangible assets and contingent liabilities.The assets and liabilities included on a firms balance sheet are valued at original acquisition cost less depreciation,rather than at current market values.,茧泰采蝎汤邵霞跌媒尤剔氛硫筋蛊靠拇炸烯睁碟锹简诱绽宽旱沁券沙待揖金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,16,Intangible assets and contingent liabilities,Not all assets and liabilities are included in the balance sheet,and others are understated and/or overstatedIntangible assets such as patents may have some value included,but brand loyalty,technological know-how,or a highly trained loyal workforce will not be valued.Goodwill(acquisition price that exceeds its book value)may be included,but soon loses its connection to market value because of accounting depreciation and market fluctuationsSome contingent liabilities such as law-suits are not routinely disclosed,or only disclosed in the notesAccountants are beginning to mark-to-market(revaluing and reporting a firms assets and liabilities at their current market prices)the assets of pension funds,种庇钠啤轴兔绽母蜘悼职头铁悯堕忧真劲掐网现枫航氦胰啸肃顷徐性赃殉金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,17,3.4 Accounting v.Economic Measures of Income,Economists Measure of Net IncomeNet cash flow to shareholders plus change in market value of existing shareholders equityAccountants Measure of Net IncomeRevenue Less Expenses Less TaxesThe above two measures would be equal if accountants marked all relevant assets and liabilities to market(they dont!),侠脸滋它镜牌证秩怂叉逐凸吨烽凡艾汀曾咬猜宛颂当嘘雅姨醛国缺鼻货习金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,18,Accounting v.Economic Measures of Income:Example,GPCs accounting net income was plus$23,400,000 in 2001Assume the total market value of the stock fell from$200,000,000 to$187,200,000 from year 2xx0 to 2xx1.We saw earlier that the cash dividend to shareholders was$10,000,000.The economic income in year 2xx1 was minus$2,800,000The Accounting and Economic measures of Income may differ substantially,非他丹袍库转倒逮颓侦荚能晰解鞭拆惨哄抿孰迅橱串欣播属铸演预凡甜清金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,19,3.5 Returns to Shareholders v.Return on Book Equity,Recall our definition in Chapter 2 of the holding period return,and compare this with the economic measure of income,This is the Total Shareholder Return.,莎臂酌皿委吱伦袍谍升装莹僳兴释楚柿机床竭抨惦遍犊闹变焚退蝴漳皮富金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,20,Returns to Shareholders v.Return on Book Equity(Continued),Traditionally,corporate performance has been measured by Return on Equity,ROE,雏垃蛔柠升链暴谗料摘谅笑瑞水裹承起抬渐兵抱炒队腊裕鸳倡义堵氖幽锑金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,21,Returns to Shareholders v.Return on Book Equity(Conclusion),Thus,we see that there is no correspondence between a firms ROE in any year&the total rate of return earned by shareholders on their investment in the companys stock,阻得娩睡吝趟栽噬俘冲骆氢伎禽嗜傅藕萎稀贵淮茹锄漳狗蚌咖痈杆卑搐谩金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,22,3.6 Analysis using Financial Ratios,Despite the differences in accounting and financial principles,the published accounts of a firm yield clues about its financial conditionFive aspects of a firms performance:ProfitabilityAsset turnover:ability to use its assets productively in generating revenueFinancial leverage:the extent to which it is burdened with debtLiquidity:ability to meet its short-term obligationsMarket value:relation between the accounting representation and its mkt value,峪沙傀破垄裁回鸳烈沟雹捞坐札刨边狡级源霄乱权参轮滤琢敌审谋钙匙因金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,23,Note,Whenever a financial ratio contains one item from the income/cashflow statement,which covers a period of time,and another from the balance sheet,which is a snapshot at a point of time,the practice is to take the average of the beginning and end-of-year balance sheet figures,and use it as the denominator.,站醋茎的奎昏差棺株吁白布珊萝铃邪澈馈尉孵贰粱枕顷鸳箍袋济诡炸菩蛰金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,24,Profitability,酌绑秽抖涂我览佬牧抹沁硼紊体澳洋淑赤伦浑婚身酮卤吴渔搽壕冶答质姑金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,25,Asset Turnover,敏疫瑰冰叉巷变尺钟志末旭瞄薪率佯殴捡鬼栅戍丝笆划彩尤明仪并吠枣论金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,26,Financial Leverage,扎魂糠廉撒手老窑眠梗湃聚丽系忍戴搂昆迪惋版凶杭白懂指氖参青课麓寞金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,27,Liquidity,襄忱察誉掌办乳惊缘参皿溃佐峦垂快皋显高牧裹极篮翌己欠单树姬江救舆金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,28,Market Value,暗躯阻苑啼寡啪儒曹恶水时最弓矫钻侈炒琐蜒玖派挟峻纶插海最魄知崎岳金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,29,Ratio Comparisons,Establish Your PerspectiveShareholderEmployee,Management,or UnionCreditorOther stakeholders,such as Predator,Customer,Supplier,Competitor,Trade AssociationBenchmarksOther companies ratiosThe firms historical ratiosData extracted from financial marketsSourcesDun&Bradstreet,Robert Morris,Commerce Departments Quarterly Financial Report,Trade Associations,推栗钙帛陷美榷攫姆输己僻实屎真召脸糖屯惜砌折呸豪爆抢床碧蚜哈完弗金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,30,Relationships Amongst Ratios,It is sometimes valuable to decompose ratios into sums,differences,products and quotients of other ratios.Many such schemes start with:,挑匀柠搐仑镀靳拧志疙蒂梅陡婆龟介唆赞物些罢友臂吊卸比破垣窟汉垮相金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,31,Difference between ROS and ATO across industries,A“low”ROS or ATO ratio need not be a sign of a troubled firm.Each of these ratios must be interpreted in light of industry norms.Even in the same industry systematic differences may exist,for example,a Roll Royce dealership will almost certainly have a higher margin and lower turnover than a Honda dealership,even though both may have the same ROA.,东遂蓝休驱獭惦巾梳棠孟搏证矽粳坚碴达惦踞关同航杆铆吏显多仓雅卖惶金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,32,Effect of Financial Leverage,Financial leverage simply means the use of borrowed moneyShareholders of a firm use financial leverage to boost their ROEThis increases the sensitivity of ROE to fluctuations in the firms underlying profitability as measured by its ROAIn other words,by making use of financial leverage,the firms shareholders are subjected to financial risk as well as to the operating risk of the firm.,列榆窝杀痛凉刁锹康郎拷盐垦岳吱喂藤嘿布蠕瑞恫邵盗裔熙丧拳嗜垢墙高金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,33,Intuitive sense,An increase in a firms financial leverage will increase its ROE if and only if its ROA exceeds the interest rate on the borrowed funds.If ROA exceeds the borrowing rate,the firm earns more on the capital it employs than it pays to its creditors,If not,the shareholders would have been better off not borrowing at all.,嘘俏泌机畔媳爷茨霓殃困蘸拇代翟噶榷哲适色盂洒棺葵悸泰寒甄芽只昧旋金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,34,Illustration,(Table 3.7&3.8 of textbook)Consider two firms that are identical except that Nodebt is financed using$1,000,000 of equity and Halfdebt is financed using$500,000 of equity and$500,000 of debtfurther assume that the EBIT of both firms is$120,000 and tax is 40%,卤乓叁吉柔言缔议孔煤捡揉撰蛰猜到上退迟恬窟机功注仆尧轩举乞畔策惫金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,35,Case:Borrow at 10%,埔赞云穗臆虞七流钓池毛冕惮拥驳箱龋库道嘲夕冻蹭濒累景撬嗡卜烹奶蛙金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,36,Case:Borrow at 15%,寻霸虹想婿猩栈惹场猩役蛋胡肾薪士家紧宋冗阎距世瞄全滔式系瘪豢大孜金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,37,Case:Borrow at 10%:Effect of Business Cycle on ROE,和慈真腾凯腔核镊馏烩劝省铜佯芳汽丘辣辅洋咯匆滔重矫叶羌冤蝎遂域扩金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,38,Exact relationship between ROA,ROE and leverage,皇栖竿台板娱立冰携申循程徊侠昧扔休伸拌惋邵灿拱碱虎吕摔诞惊饯逝揉金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,39,Conclusion:,From the perspective ofCreditors:increasing debt is unambiguously harmful,and bond rating agencies will downgrade the firms securitiesShareholders:may benefit,depending on the sign of(ROA-interest rate)and ROA,欺巳崩棠鼻谎伯桓饭念览考湛惊溃紫刷蜘弦啤市繁酌编腥邵矩识蛊勉仲帧金融学教学课件bodie2e_chapter03金融学教学课件bodie2e_chapter03,Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall,40,Ratio Analysis Limitations,Ratio analysis indicates where you might profitably focus your attention,but it can also mislead youLook for collaborating evidence for the hypotheses you form from the ratiosSound long-term goals of a firm may cause ratios to look awfu