暨南大学管理学院成本与管理会计课件 Chapter16.ppt

“How Well Am I Doing?” Financial Statement Analysis Chapter Sixteen Limitations of Financial Statement Analysis Differences in accounting methods between companies sometimes make comparisons difficult. Limitations of Financial Statement Analysis Learning Objective 1 Statements in Comparative and Common-Size Form Dollar and Percentage Changes on Statements Horizontal analysis (or trend analysis) shows the changes between years in the financial data in both dollar and percentage form. Horizontal Analysis Example The following slides illustrate a horizontal analysis of Clover Corporation’s December 31, 2007 and 2006, comparative balance sheets and comparative income statements. Horizontal Analysis Horizontal Analysis Calculating Change in Dollar Amounts Horizontal Analysis Calculating Change as a Percentage Horizontal Analysis Horizontal Analysis Horizontal Analysis Horizontal Analysis Horizontal Analysis Horizontal Analysis Horizontal Analysis Trend Percentages Trend Analysis Trend Analysis Example Look at the income information for Berry Products for the years 2003 through 2007. We will do a trend analysis on these amounts to see what we can learn about the company. Trend Analysis Berry Products Income Information For the Years Ended December 31 Trend Analysis Berry Products Income Information For the Years Ended December 31 Trend Analysis Berry Products Income Information For the Years Ended December 31 Trend Analysis Common-Size Statements Common-Size Statements Gross Margin Percentage Common-Size Statements Common-Size Statements Common-Size Statements Example Let’s take another look at the information from the comparative income statements of Clover Corporation for 2007 and 2006. This time, let’s prepare common-size statements. Common-Size Statements Common-Size Statements Common-Size Statements Quick Check ? Quick Check ? Learning Objective 2 Ratio Analysis – The Common Stockholder The ratios that are of the most interest to s