Corporate finance analysis (horizontal, vertical, ratios)

Descripción

APS APS Finance Mapa Mental sobre Corporate finance analysis (horizontal, vertical, ratios), creado por Ngan Ha Nguyen el 10/09/2017.
Ngan Ha Nguyen
Mapa Mental por Ngan Ha Nguyen, actualizado hace más de 1 año
Ngan Ha Nguyen
Creado por Ngan Ha Nguyen hace más de 7 años
4
0

Resumen del Recurso

Corporate finance analysis (horizontal, vertical, ratios)
  1. Profitability
    1. Gross margin = gross profit / net sales
      1. Net margin = net profit / net sales
        1. ROCE (Return on capital employed: the relationship between the profit and amount of funds that were employed in making the profits) ---> = profit bf interest & tax/(total assets - current liabilities)
          1. ROE = (profit after tax & preference dividend)/equity shareholders' funds
            1. Asset turnover = revenue / capital employed (the ability of asset to generate revenue)
              1. Profit margin
              2. Liquidity
                1. Current ratio = current assets / current liabilites ---> shows how much money to come to pay off current liabilities ---> if low, may have liquidity risk, if too high, use asset for short term purposes too much, should consider long term goals
                  1. Quick ratio = (current asset - inventory)/ current liabilties)
                    1. DI = avr inventory / COGS x 365 -> if high, not good at trading; if low, might have shortage if demands rise or insufficient inventory for manufacturing
                      1. DAP = avr trade payables / purchase x 365 ---> if high, good at manage temporary capital, if too high -> credit ranking may fall
                        1. DSO = avr trade receivables /sales x 365 -> if high, poor credit control; if too low, may lose customers as they cannot pay off their debt in short run
                        2. Solvency: the ability of a company to manage its debt burden in the long run
                          1. Gearing = interest bearing debt / (shareholders' equity + interest bearing debt) ---> if it is to high and continue to rise, there will be a risk that interest paid exceeds profit
                            1. Interest cover = profit bf interest & tax / interest charges ---> if low, the profits of shareholders are likely vulnerable
                            2. Inverstor's ratios
                              1. EPS (earnings per share) = profit attributable to ordinary shareholders / no of ord. shares in issue ---> the return on each ordinary share in the year
                                1. P/E = current share price / EPS ---> if high, strong shareholder confidence in the company and its future
                                  1. Dividend cover = earnings per share / dividend per share ---> shows the proportion of profit for the year that is available for distribution to shareholders (if = 2, retain 50% earnings for business operation, the rest pay the shareholders)
                                  Mostrar resumen completo Ocultar resumen completo

                                  Similar

                                  Issues with WACC and capital structure policy
                                  viangca
                                  Lintner's Stylized Facts on Dividend Payouts
                                  Tanishq Chauhan
                                  MM Dividend Irrelevance Introduction
                                  Tanishq Chauhan
                                  Corporate Finance
                                  jed
                                  Taxation and Clientele Theory
                                  Tanishq Chauhan
                                  Asymmetric Information and Dividends (signalling)
                                  Tanishq Chauhan
                                  Dividend Policy Summary
                                  Tanishq Chauhan
                                  MM dividend policy intro slide
                                  Tanishq Chauhan
                                  Mid-Term Corporate Finance
                                  siggahernes
                                  Agency Theory
                                  Tanishq Chauhan
                                  Chapter 1: An Overview of Financial Mgmt and the Financial Environment
                                  L F