研究生商务英语课件.ppt

Financial Statement Analysis October 2000 C.J. Brown, M.M. Dutton and T.A. Rietz * Dell’s Balance Sheet: Assets the firm owns total more that $11 billion** , more short-term assets than long-term assets like plant and equipment. Those assets were purchased with money that came mainly from equity and short-term borrowing. Relatively little long-term debt. Financial Statement Analysis October 2000 C.J. Brown, M.M. Dutton and T.A. Rietz * Dell had more than $25 billion sales during the period. A large part of revenues went to pay for the raw materials that went into production. Depreciation reflects expenditure on a long-term asset which firm must expense over several years for tax purposes. It does not reflect an actual expenditure during this particular accounting period. Financial Statement Analysis October 2000 C.J. Brown, M.M. Dutton and T.A. Rietz * Used to study ability to cover current obligations Can firm raise cash to pay its current and upcoming bills on time? Basic Formulation: Liquid asset measures include: Current Assets Current Assets minus Inventories If industry average is 3.5, then Dell has fewer current assets per dollar of current liabilities than the norm If acid test ratio 1, then Dell can meet all current liabilities even if sales cease Financial Statement Analysis October 2000 C.J. Brown, M.M. Dutton and T.A. Rietz * Used to study operating profitability. How do profits compare to sales or assets? Basic Formulation: Profit measures include: Sales less costs Net Income Income Available to Common Stock Holders Sales/Asset measures include: Sales Total Assets Common Equity NOTE: Some books use: If yours does, use theseequations AND adjust theDuPont Method accordinglyby adding the the debt burden. * Unit 7 Accounting * A business executive was interviewing candidates for a managerial position. In the course of the interview, he asked each applicant: “How much is two plus two?” The first applicant, trained as an enginee