onInvestedCapital(财务报表分析,台湾中兴大学).pptx

8;? Joint analysis is where one measure is assessed relative to another ? Return on invested capital (ROI) is an important joint analysis;Return on Invested Capital ;Return on Invested Capital;Return on Invested Capital;Return on Invested Capital;Return on Invested Capital;Return on Invested Capital;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Components of ROI;Analyzing Return on Assets--ROA;Analyzing Return on Assets--ROA;Analyzing Return on Assets--ROA;Analyzing Return on Assets--ROA;Sales to Cash: Reflects trade-off between liquidity and accumulation of low-return funds Sales to Receivables: Reflects trade-off between increased sales and accumulation of funds in receivables Sales to Inventories: Reflects trade-off between funds accumulated in inventory and the potential loss of current and future sales Sales to Fixed Assets: Reflects trade-off between fixed asset investments having high break-even points and investments in more efficient, productive assets with high sales potential Sales to Other Assets: Reflects trade-off between assets held for current and future sales and accumulation of funds in higher risk assets Sales to Current Liabilities: Reflects a relation between sales and current trade liabilities ;;;Adjusted profit margin = Pre-tax adjusted profit margin x Retention rate; ROCE = [(EBIT profit margin × Asset turnover) – Interest burden] × Leverage × Retention rate ? EBIT is earnings (income) before interest and taxes (and before any preferred dividends) ? EBIT profit margin is EBIT divided by sales ? Interest burden is interest expense divided by average assets This disaggregation highlights effects of both interest and taxes on ROCE;Analyzing Return on Common Equity--ROCE