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AC12 Financial Statement Analysis - Coggle Diagram
AC12 Financial Statement Analysis
Purpose
Users
External
Bankers
Analysts
Investors
Competitors
Customers
Shareholders
Internal
Management
Efficient Management
Employees
Decision
Solvency
Debt-to-Equity Ratio
Total Liabilities / Total Equity
Interest Coverage Ratio
Profit before Interest and Tax / Interest Expense
Debt Ratio
Total Liabilities / Total Assets
Market Prospect
Dividend per Share
Total Dividend Paid / No of Ordinary Shares Outstanding
Earnings per Share
Net Profit after Tax / No of Ordinary Shares Outstanding
Profitability
Net Profit Margin
Net Profit After Tax / Sales
Return on Asset
Net Profit After Tax / Average Total Assets
Gross Profit Margin
Gross Profit / Sales
Return on Equity
Net Profit After Tax / Average Equity
Efficiency
Debtor Collection Period
365 x Average Accounts Receivable / Net Credit Sales
365 / Accounts Receivable Turnover Ratio
Accounts Payable Turnover Ratio
Cost of Goods Sold / Average Accounts Payable
Accounts Receivable Turnover Ratio
Net Credit Sales / Average Accounts Receivable
Creditor Payment Period
365 x Average Accounts Payable / Cost of Goods Sold
365 / Accounts Payable Turnover Ratio
Inventory holding period
365 x Average Inventory / Cost of Goods Sold
365 / Inventory Turnover Ratio
Inventory Turnover Ratio
Cost of Goods Sold / Average Inventory
Liquidity
Quick Ratio
( Current Assets - Inventory ) / Current Liabilities
Current Ratio
Current Assets / Current Liabilities
Limitations
Large Firms
Accounting Practice
Qualitative considerations