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FINANCIAL STATEMENT ANALYSIS - Coggle Diagram
FINANCIAL STATEMENT ANALYSIS
1.1Types of financial statement
1.1.2 Cashflow Statement
shows how much cash the firm began the year with, how much cash it ended up with and what it did to increase or decrease its cash.
1.1.3 Balance Sheet
shows what assets the company owns and who has claims on those assets as of a given date
1.1.3.1 ASSETS
Current assets: converted to cash <1 year
Cash and cash equivalents
Account receivable
Inventory
Long-term assets: used > 1 year
Net plant and equipment
Other long-term assets
1.1.3.2 Liabilitites & Equity
Liabilitiy: Current liabilities (Accrued wages and taxes, Accounts Payable, Notes Payable) and Long-term Debt
Stockholders' Equity: Common stock + RE = Total Assets - Total Liabilities
1.1.1 Income statement
shows the firm's sales and costs, during some past period
1.2. Factor affecting ratio analysis
Debt management
Profitability
Asset management
Market value
Liquidity
1.3. Qualitative analysis
Qualitative analysis uses subjective judgment based on "soft" or non-quantifiable data.
Understanding people and company cultures are central to qualitative analysis.
Qualitative analysis deals with intangible and inexact information that can be difficult to collect and measure
1.4 Ratio
1.4.1 Liquidity ratios
1.4.1.1 Current ratio
Current Assets/ Current Liabilities
1.4.1.2 Quick ratio
(Current Assets - Inventory) / Current Liabilities
1.4.2 Assets Management ratio
1.4.2.2 Day sales outstanding ratio
(Accounts Receivables / Net credit sales) x 365
1.4.2.3 Fixed asset Turnover
Net sales / Average Fixed assets
1.4.2.1 Inventory Turnover
Net Sales/ Average Inventory at Selling price
1.4.2.4 Total asset Turnover
Net sales/ Average Total Assets
1.4.3 Debt Managements ratio
1.4.3.1 Debt ratio
Total liabilities / Total Assets
1.4.3.2 Times interest earned ratio
Earnings Before Interest&Taxes / Interest Expense
1.4.4 Profitability ratios
1.4.4.2 Profit margin
(Net income/Net sales) x 100
1.4.4.3 Basic earning power
EBIT (Operating income) / Total assets
1.4.4.1 Operating margin
(Operating profit/Net sales) x 100
1.4.4.4 Return on asset (ROA)
Net income available to common stockholders/ Total assets
1.4.4.5 Return on equity (ROE)
Net income available to common stockholders / Common equity
1.4.5 Valuations ratio
1.4.5.2 P/CF
Share price / Cashflow per Share
1.4.5.3 M/B
Market capitalization / Total book value
1.4.5.1 P/E
Share price / Earnings per Share
1.5 Dupon Equations
1.5.1 Formula of Dupont Equation
ROE = Profit margin ×Total assets turnover ×Equity multiplie