毕业论文外文翻译企业并购财务报表分析.doc

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1、CHANGCHUN INSTITUTE OF TECHNOLOGY 毕业设计(论文)外文资料翻译原文题目：Enterprise merger and acquisition analysis of financial statements中文题目： 企业并购财务报表分析 文献出处：The modern enterprise financial management美James C.Van Horne.学生姓名： 崔忠楠 学院名称： 管理学院 专业名称： 财务管理 班级名称： 财务1041 学 号： 1009426139 指导教师： 洪筠 教师职称: 教授 学 历： 本科 2014 年 6月 6

2、 日外文原文Enterprise merger and acquisition analysis of financial statements Corporate mergers and acquisitions have become a major form of capital operation. Enterprise use of this mode of operation to achieve the capital cost of the external expansion of production and capital concentration to obtain

3、synergies, enhancing competitiveness, spread business plays a very important role. M & A process involves a lot of financial problems and solve financial problems is the key to successful mergers and acquisitions. Therefore, it appears in merger analysis of the financial problems to improve the effi

4、ciency of M & Finance has an important practical significance.We need to use financial ratios in analyzing financial statements. The analysis of comparative financial statements cannot be made really effective unless it takes the form of a study of relationships between items in the statements. It i

5、s of little value, for example, to know that, on a given date, the Smith Company has a cash balance of $1oooo. But suppose we know that this balance is only -IV per cent of all current liabilities whereas a year ago cash was 25 per cent of all current liabilities. Since the bankers for the company u

6、sually require a cash balance against bank lines, used or unused, of 20 per cent, we can see at once that the firms cash condition is exhibiting a questionable tendency. Saving transaction costs. M & A market is essentially an alternative organization to realize the internalization of external trans

7、actions, as appropriate under the terms of trade, business organizations, the cost may be lower than in the market for the same transaction costs, thereby reducing production and operation the transaction costs.To reduce agency costs. When the business separation of ownership and management, because

8、 the interests of corporate management and business owners which resulted in inconsistencies in agency costs, including all contract costs with the agent, the agent monitoring and control costs. Through acquisitions or agency competition, the incumbent managers of target companies will be replaced,

9、which can effectively reduce the agency costs. Lower financing costs. Through mergers and acquisitions, can expand the size of the business, resulting in a common security role. In general, large companies easier access to capital markets, large quantities they can issue shares or bonds. As the issu

10、e of quantity, relatively speaking, stocks or bonds cost will be reduced to enable enterprises to lower capital cost, refinancing. To obtain tax benefits. M & A business process can make use of deferred tax in terms of a reasonable tax avoidance, but the current loss of business as a profit potentia

11、l acquisition target, especially when the acquiring company is highly profitable, can give full play to complementary acquisitions both tax advantage. Since dividend income, interest income, operating income and capital gains tax rate difference between the large mergers and acquisitions take approp

12、riate ways to achieve a reasonable financial deal with the effect of tax avoidance. To increase business value. M & A movement through effective control of profitable enterprises and increase business value. The desire to control access to the right of the main business by trading access to the othe

13、r rights owned by the control subjects to re-distribution of social resources. Effective control over enterprises in the operation of the market conditions, for most over who are in competition for control of its motives is to seek the companys market value and the effective management of the condit

14、ion should be the difference between the market value. The company liquidity and solvency position is to maintain the basic conditions for good financial flexibility. Companys financial flexibility is important, it mainly refers to the enterprises to maintain a good liquidity for timely repayment of

15、 debt. Good cash flow performance in a good income-generating capacity and funding from the capital market capacity, but also the companys overall Profitability, Profitability is the size of which can be companys overall business conditions and competition prospects come to embody. Specific assessme

16、nt, the fixed costs to predict the total expenditures and cash flow trends, the fixed costs and discretionary spending is divided into some parts of constraints, in order to accurately estimate the companys working capital demand in the near future, on the accounts receivable turnover and inventory

17、turnover rate of the data to be reviewed, should include other factors that affect financial flexibility, such as short-term corporate debt levels, capital structure, the higher the interest rate of Zhaiwu relatively specific weight. M & M price is the cost of an important part of the target company

18、s value is determined based on M & A prices, so enterprises in M & Juece Oclock on targeted business Jinxing scientific, objective value of Ping Gu, carefully Xuanze acquisition Duixiang to Shi Zai market competition itself tide in an invincible position. Measure of the value of the target company,

19、generally adjusted book value method, market value of comparative law, price-earnings ratio method, discounted cash flow method, income approach and other methods. We may make comparisons between items in the comparative financial statements as follows: 1. Between items in the comparative balance sh

20、eet a) Between items in the balance sheet for one date, e.g., cash may be compared with current liabilities b) Between an item in the balance sheet for one date and the same item in the balance sheet for another date, e.g., cash today may be compared with cash a year ago c) Of ratios, or mathematica

21、l proportions, between two items in the balance sheet for one date and a like ratio in the balance sheet for another date, e.g., the ratio of cash to current liabilities today may be compared with a like ratio a year ago and the trend of cash condition noted 2. Between items in the comparative state

22、ment of income and expense a) Between items in the statement for a given period b) Between one item in this periods statement and the same item in last periods statement c) Of ratios between items in this periods statement and similar ratios in last periods statement 3. Between items in the comparat

23、ive balance sheet and items in the comparative statement of income and expense a) Between items in these statements for a given period, e.g., net profit for this year may be calculated as a percentage of net worth for this year b) Of ratios between items in the two statements for a period of years,

24、e.g., the ratio of net profit to net worth this year may-be compared with like ratios for last year, and for the years preceding that Our comparative analysis will gain in significance if we take the foregoing comparisons or ratios and; in turn, compare them with: I. Such data as are absent from the

25、 comparative statements but are of importance in judging a concerns financial history and condition, for example, the stage of the business cycle 2. Similar ratios derived from analysis of the comparative statements of competing concerns or of concerns in similar lines of business What financial rat

26、ios are used in analyzing financial statements.- Comparative analysis of comparative financial statements may be expressed by mathematical ratios between the items compared, for example, a concerns cash position may be tested by dividing the item of cash by the total of current liability items and u

27、sing the quotient to express the result of the test. Each ratio may be expressed in two ways, for example, the ratio of sales to fixed assets may be expressed as the ratio of fixed assets to sales. We shall express each ratio in such a way that increases from period to period will be favorable and d

28、ecreases unfavorable to financial condition. We shall use the following financial ratios in analyzing comparative financial statements: I. Working-capital ratios 1. The ratio of current assets to current liabilities 2. The ratio of cash to total current liabilities 3. The ratio of cash, salable secu

29、rities, notes and accounts receivable to total current liabilities 4. The ratio of sales to receivables, i.e., the turnover of receivables 5. The ratio of cost of goods sold to merchandise inventory, i.e., the turnover of inventory 6. The ratio of accounts receivable to notes receivable 7. The ratio

30、 of receivables to inventory 8. The ratio of net working capital to inventory 9. The ratio of notes payable to accounts payable IO. The ratio of inventory to accounts payable II. Fixed and intangible capital ratios 1. The ratio of sales to fixed assets, i.e., the turnover of fixed capital 2. The rat

31、io of sales to intangible assets, i.e., the turnover of intangibles 3. The ratio of annual depreciation and obsolescence charges to the assets against which depreciation is written off 4. The ratio of net worth to fixed assets III. Capitalization ratios 1. The ratio of net worth to debt. 2. The rati

32、o of capital stock to total capitalization .3. The ratio of fixed assets to funded debt IV. Income and expense ratios 1. The ratio of net operating profit to sales 2. The ratio of net operating profit to total capital 3. The ratio of sales to operating costs and expenses 4. The ratio of net profit t

33、o sales 5. The ratio of net profit to net worth 6. The ratio of sales to financial expenses 7. The ratio of borrowed capital to capital costs 8. The ratio of income on investments to investments 9. The ratio of non-operating income to net operating profit 10. The ratio of net operating profit to non

34、-operating expense 11. The ratio of net profit to capital stock 12. The ratio of net profit reinvested to total net profit available for dividends on common stock 13. The ratio of profit available for interest to interest expenses This classification of financial ratios is permanent not exhaustive.

35、-Other ratios may be used for purposes later indicated. Furthermore, some of the ratios reflect the efficiency with which a business has used its capital while others reflect efficiency in financing capital needs. The ratios of sales to receivables, inventory, fixed and intangible capital; the ratio

36、s of net operating profit to total capital and to sales; and the ratios of sales to operating costs and expenses reflect efficiency in the use of capital. Most of the other ratios reflect financial efficiency. Are the statements adequate in general?-Before attempting comparative analysis of given fi

37、nancial statements we wish to be sure that the statements are reasonably adequate for the purpose. They should, of course, be as complete as possible. They should also be of recent date. If not, their use must be limited to the period which they cover. Conclusions concerning 1923 conditions cannot s

38、afely be based upon 1921 statements. Does the comparative balance sheet reflect a seasonable situation? If so, it is important to know financial conditions at both the high and low points of the season. We must avoid unduly favorable judgment of the business at the low point when assets are very liq

39、uid and debt is low, and unduly unfavorable judgment at the high point when assets are less liquid and debt likely to be relatively high. Does the balance sheet for any date reflect the estimated financial condition after the sale of a proposed new issue of securities? If so, in order to ascertain t

40、he actual financial condition at that date it is necessary to subtract the amount of the security issue from net worth, if the. issue is of stock, or from liabilities, if bonds are to be sold. A like amount must also be subtracted from assets or liabilities depending upon how the estimated proceeds

41、of the issue are reflected in the statement. Are the statements audited or unaudited? It is often said that audited statements, that is, complete audits rather than statements rubber stamped by certified public accountants, are desirable when they can be obtained. This is true, but the statement ana

42、lyst should be certain that the given auditing films reputation is beyond reproach. Is working-capital situation favorable ?-If the comparative statements to be analyzed are reasonably adequate for the purpose, the next step is to analyze the concerns working-capital trend and position. We may begin

43、 by ascertaining the ratio of current assets to current liabilities. This ratio affords-a test of the concerns probable ability to pay current obligations without impairing its net working capital. It is, in part, a measure of ability to borrow additional working capital or to renew short-term loans

44、 without difficulty. The larger the excess of current assets over current liabilities the smaller the risk of loss to short-term creditors and the better the credit of the business, other things being equal. A ratio of two dollars of current assets to one dollar of current liabilities is the rule-of

45、-thumb ratio generally considered satisfactory, assuming all current assets are conservatively valued and all current liabilities revealed. The rule-of-thumb current ratio is not a satisfactory test of working-capital position and trend. A current ratio of less than two dollars for one dollar may be

46、 adequate, or a current ratio of more than two dollars for one dollar may be inadequate. It depends, for one thing, upon the liquidity of the current assets. The liquidity of current assets varies with cash position.-The larger the proportion of current assets in the form of cash the more liquid are

47、 the current assets as a whole. Generally speaking, cash should equal at least 20 per cent of total current liabilities (divide cash by total current liabilities). Bankers typically require a concern to maintain bank balances equal to 20 per cent of credit lines whether used or unused. Open-credit l

48、ines are not shown on the balance sheet, hence the total of current liabilities (instead of notes payable to banks) is used in testing cash position. Like the two-for-one current ratio, the 20 per cent cash ratio is more or less a rule-of-thumb standard. The cash balance that will be satisfactory depends upon terms of sale, terms of purchase, and u