Analysis財(cái)務(wù)報(bào)表分析課件

ProfitabilityAnalysis9CHAPTERMcGraw-Hill/Irwin?2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.AnalyzingProfitabilityFocusofProfitabilityAnalysis?Profitabilityanalysisisakeypartoffinancialstatementanalysis?Allfinancialstatementsarepertinenttoprofitabilityanalysis?EmphasisofprofitabilityanalysisisontheincomestatementAnalyzingProfitabilityFocusofProfitabilityAnalysisProfitabilityanalysishelpsaddressquestionssuchas:Whatisacompany'srelevantincomemeasure?Whatisthequalityofincome?Whatincomecomponentsareimportantforforecasting?Howpersistentareincomeanditscomponents?Whatisacompany'searningpower?AnalyzingProfitabilityMeasuringIncomeIncomeisdefinedasrevenueslessexpensesoverareportingperiodThisdefinitiondoesnotyieldauniqueamountbecauseof:?EstimationIssues?AccountingMethods?IncentivesforDisclosure?DiversityacrossUsersAnalyzingProfitabilityMeasuringIncome--EstimationIssuesIncomemeasurementdependsonestimatesoffutureeventsTheseestimatesrequire:?Useofjudgmentandprobabilities?Allocationsofrevenuesandexpensesacrossperiods?Predictionofthefutureusefulnessofmanyassets?ForecastsoffutureobligationsAnalyzingProfitabilityMeasuringIncome--EstimationIssuesManagementdiscretionispartofincomemeasurementEstimatesofskilledandexperiencedprofessionals?Someconsensus(lessvariability)AnalyzingProfitabilityMeasuringIncome--AccountingMethodsProfessionalexperienceRegulatoryagendasBusinesshappeningsAcademicresearchSocialInfluencesPoliticalpressuresAccountingstandardsgoverningincomemeasurementAnalyzingProfitabilityMeasuringIncome--AccountingMethodsMethodsreflecttheoutcomeofnumerousfactors,includingcompromisesDiscretionispermittedtoaccommodatedifferentbusinesscircumstancesMethodsgearedtoward“general-purpose”financialstatementsAnalyzingProfitabilityMeasuringIncome--IncentivesforDisclosureIdeally:?Financialstatementsfairlypresenttransactionsandevents?Accountingisneutral—notaffectinghowtransactionsandeventsareperceived?Methodschosenthataremostapplicabletothecircumstances?Relevantinformationisdisclosed—favorableandunfavorableAnalyzingProfitabilityMeasuringIncome--IncentivesforDisclosureReality:?Eachofuspossessopinions--weseetheworldfromdifferentperspectives?Managersbringstrongviewstothetable?Managersfeelpressuresofcompetitionandsociety?Directorsexpectresults?Shareholdersconcentrateonthebottomline?Creditorswantsafeguards?Financialanalystsdislikesurprises?AccountingpreparersandauditorsdemandacceptablepracticesAnalyzingProfitabilityMeasuringIncome--IncentivesforDisclosureResult:“Acceptable”methods,notnecessarily“appropriate”methodsAnalyzingProfitabilityMeasuringIncome--DiversityAcrossUsers?Financialstatementsaregeneral-purposereportsservingdiverseneedsofmanyusers?Diversityofviewsimpliesananalysisusesincomeasaninitialmeasureofprofitability?Useavailableinformationadjustincomemeasurementconsistentwithone'sobjectivesAnalyzingRevenuesTwo-PhaseAnalysisofIncomeAnalysisofincomeanditscomponentsinvolvestwophases1.AnalysisofaccountinganditsmeasurementsPurpose:Toapplyknowledgeofaccountingtoyieldameasureofincome,anditscomponents,consistentwiththeanalysisobjectives2.Applyinganalysistoolstoincome(anditscomponents)andinterpretingtheanalyticalresultsPurpose:Toapplyanalysistoolstoaidachievetheanalysisobjectives—suchasincomeforecastingandestimatingearningpowerAnalyzingRevenuesRevenueSourcesAnalysisofrevenues(sales)helpsaddressquestionssuchas:?Whatarethemajorsourcesofrevenue??Howpersistentarerevenuesources??Howarerevenues,receivables,andinventoriesrelated??Whenisrevenuerecorded??Howisrevenuemeasured?AnalyzingRevenuesRevenueSources?Knowledgeofmajorsourcesofrevenuesisimportanttoprofitabilityanalysis?Eachmarketandproductlineoftenhasitsowngrowthpattern,profitability,andfuturepotential?Common-sizeanalysisofrevenuesshowsthepercentofeachmajorclassofrevenuetoitstotal?GraphicalanalysisisausefultooltointerpretthesourcesofrevenuesAnalyzingRevenuesRevenueSourcesDiversifiedCompaniespresentspecialchallenges?Differentsegmentsusuallyexperiencevaryingratesofprofitability,risk,andgrowth?Assetcompositionandfinancingrequirementsofsegmentsoftenvary?Evaluation,projection,andvaluationofincomeisaidedbysegmentanalysis?Segmentssharecharacteristicsofvariability,growth,andrisk?Incomeforecastingbenefitsfromforecastsbysegments?MustseparateandinterprettheimpactofindividualsegmentsAnalyzingRevenuesRevenueSourcesFulldisclosurebysegmentsisrarebecauseof:?Difficultiesinseparatingsegments?Management'sreluctancetoreleaseinformationthatcanharmitscompetitivepositionAnalyzingRevenuesRevenueSourcesReportingrequirementsexistfor:?Industrysegments?Internationalactivities?Exportsales?MajorcustomersGAAPAnalyzingRevenuesRevenueSourcesReportingrequirementsconsiderasegmentsignificantifitssales,operatingincome,oridentifiableassetscomprise10percentormoreoftheirrelevanttotalsNotes:Combinedsalesofallsegmentsreportedmustbeatleast75percentofthecompany'stotalsalesTensegmentsisviewedasapracticallimitonthenumberofsegmentsreportedGAAPAnalyzingRevenuesRevenueSourcesInformationdisclosedforeachsegment:(1)sales—bothintersegmentandtounaffiliatedcustomers(2)operatingincome—revenueslessoperatingexpenses(3)identifiableassets(4)capitalexpenditures(5)depreciation,depletion,andamortizationSimilardisclosuresarerequiredforinternationaloperationsandexportsales(exceptcapitalexpendituresanddepreciation)Revenuesfromasinglecustomeraredisclosediftheycomprise10percentormoreoftotalrevenuesAnalyzingRevenuesRevenueSourcesLimitationsofsegmentdata:?Difficulttodefinesegments?ArbitraryallocationsofcostsacrosssegmentsAnalyzingRevenuesRevenueSourcesUsefulapplicationsofsegmentdatainclude:?Analysisofsalesgrowth?Analysisofassetgrowth?AnalysisofprofitabilityPersistence(stabilityandtrend)ofrevenuesisimportanttoprofitabilityanalysisAnalysistoolsforassessingpersistenceinrevenuesinclude:(1)trendpercentanalysis(2)evaluationofManagement'sDiscussionandAnalysisAnalyzingRevenuesPersistenceofRevenuesRevenuesforapriorperiodaresetequalto100percentRevenuesforotherperiodsarecomparedtoitRevenuetrendsbysegmentsareoften:CorrelatedComparedtoindustrynormsComparedtocompetitorsAnalyzingRevenuesPersistenceofRevenues--TrendPercentAnalysisOtherrelatedmeasures:(Auto)correlationsofrevenuesacrossperiodsAssesssensitivityofrevenuestobusinessconditionsCustomeranalysis—concentration,dependence,andstabilityRevenues'concentrationordependenceononesegmentRevenues'relianceonsalesstaffGeographicaldiversificationofmarketsAnalyzingRevenuesPersistenceofRevenues--TrendPercentAnalysisManagement'sDiscussionandAnalysis(MD&A)isoftenusefulinanalysisofpersistenceinrevenues?Aidsinunderstandingandevaluatingperiod-to-periodchanges?Reportonchangesinrevenuecomponents?Disclosesuncertaintiesaffectingorlikelytoaffectrevenues?Explainsgrowthinrevenuestoprices,volume,inflation,ornewproductintroduction?Reportssomeforward-lookinginformation?DiscussestrendsandforcesnotevidentfromfinancialstatementsAnalyzingRevenuesPersistenceofRevenues--MD&ARevenuesandAccountsReceivableRelationBearson:EarningsqualityCollectibilityofreceivablesAnalyzingRevenuesKeyRevenueRelationsRevenuesandInventoriesRelationBearson:FuturerevenuesAnalysisofoperationsAnalyzingRevenuesKeyRevenueRelationsProfitabilityanalysismustadjustfordifferentrevenuerecognitionmethodsin:?Comparativeanalysis—bothtemporalandcross-sectional?ForecastingrevenuesChapter6discussesrevenuerecognitioncriteriaandmeasurementAnalyzingRevenuesRevenuesRecognitionAnalyzingCostsofRevenuesMeasuringGrossProfitGrossprofit,orgrossmargin,ismeasuredasrevenueslesscostofsalesAllothercostsmustberecoveredfromgrossprofitAnyincomeearnedisthebalanceremainingafterthesecostsGrossprofitmustfinanceessentialfuture-directeddiscretionaryexpendituresMeasuringGrossProfitGrossprofitsvaryacrossindustriesdependingonfactorssuchas:?Competition?Capitalinvestment?LevelofcoststhatmustberecoveredfromgrossprofitAnalyzingCostsofRevenuesAnalyzingGrossProfitAnalysisofgrossprofitdirectsattentionatthefactorsexplainingvariationsin:?Sales?CostsofsalesAnalyzingCostsofRevenuesAnalyzingGrossProfitAnalysisStatementofChangesinGrossProfitStep1.Focusonyear-to-yearchangeinvolumeassumingunitsellingpriceisunchanged—VolumechangeismultipliedbytheconstantunitsellingpricetoyieldchangeinsalesStep2.Focusonyear-to-yearchangeinsellingpriceassumingvolumeisconstant--ChangeinsellingpriceismultipliedbytheconstantvolumetoyieldchangeinsalesStep3.Focusonjointchangesinvolumeandunitprice—VolumechangeismultipliedbythechangeinunitsellingpricetoyieldnetchangeinsalesStep4.Steps1to3explainthenetchangeinsales.AnalyzingCostsofRevenuesAnalyzingGrossProfitAnalysisStatementofChangesinGrossProfit—IllustrationYearEndedDecember31Year-to-YearChangeItemYear1Year2IncreaseDecrease1.Sales($millions)$657.6$687.5$29.92.Costofsales($millions)237.3245.38.03.Grossprofit($millions)$420.3$442.2$21.94.Unitssold(inmillions)215.6231.515.95.Salespriceperunit(1÷4)$3.05$2.97$0.086.Costperunit(2÷4)1.101.060.04AnalyzingCostsofRevenuesAnalyzingGrossProfitAnalysisStatementofChangesinGrossProfitYear2versusYear1AnalysisofVariationinSales1.Changeinvolumeofproductssold:Changeinvolume(15.9)?Year1unitsellingprice($3.05)$48.52..Changeinsellingprice:Changeinsellingprice($0.08)?Year1salesvolume(215.6)17.2$31.33.Combinedchangeinsalesvolume(15.9)andunitprice($0.08)1.3Increaseinnetsales$30.0*AnalysisofVariationinCostofSales1.Changeinvolumeofproductssold:Changeinvolume(15.9)?Year1costperunit($1.10)$17.52.Changeincostperunitsold:Changeincostperunit($0.04)?Year1salesvolume(215.6)8.6$8.93.Combinedchangeinvolume(15.9)andcostperunit($0.04)0.6Increseincostofsales$8.3*Netvariationingrossprofit$21.7**Differencesareduetorounding.AnalyzingCostsofRevenuesInterpretingChangesinGrossProfitAnalyzingCostsofRevenuesChangesingrossprofitareoftendrivenbyoneormoreofthefollowingfactors:IncreaseinsalesvolumeDecreaseinsalesvolumeIncreaseinunitsellingpriceDecreaseinunitsellingpriceIncreaseincostperunitDecreaseincostperunitInterpretingChangesinGrossProfitAnalyzingCostsofRevenues?Identificationoffactorsdrivinggrossprofityields?Improvedbusinessstrategies?BetterassessmentoffutureperformanceToolsforAnalysisofExpensesAnalyzingExpensesCommon-sizeanalysisCommon-sizeincomestatementsexpressexpensesintermsoftheirpercentrelationwithrevenuesTracedoverseveralperiodsorcomparedwithcompetitorsIndexnumberanalysisIndexnumberanalysisofincomestatementsexpressesincomeanditscomponentsinanindexnumberrelatedtoabaseperiodHighlightsrelativechangesacrosstimeChangesinexpensesarereadilycomparedwithchangesinbothrevenuesandrelatedexpensesOperatingratioanalysisOperatingratiomeasurestherelationbetweenoperatingexpenses(oritscomponents)andrevenuesEqualscostofgoodssoldplusotheroperatingexpensesdividedbynetrevenuesInterestandtaxesarenormallyexcludedfromthismeasureduetoitsfocusonoperatingefficiency(expensecontrol)andnotfinancingandtaxmanagementUsefulforanalysisofexpenseswithinandacrosscompaniesSellingExpensesAnalyzingExpensesAnalysisofsellingexpensesfocusesonthreeareas:EvaluatingtherelationbetweenkeysellingexpensesandrevenuesAssessingbaddebtsexpenseEvaluatingthetrendandproductivityoffuture-directedmarketingexpensesDepreciationExpenseAnalyzingExpensesRelationofdepreciationtogrossplantandequipmenthelpsrevealchangesinthecompositerateofdepreciation—thisisusefulinevaluatingdepreciationlevelsandindetectingadjustments(smoothing)toincome:Itisoftenusefultocomputethisratiobyassetcategoriesassets

eDepreciablexpense

onDepreciatiMaintenanceandRepairsExpenseAnalyzingExpensesMaintenanceandrepairsexpense:?Varieswithinvestmentinplantandequipmentandwiththelevelofproductiveactivity?Affectcostsofsalesandotherexpenses?Comprisebothvariableandfixedcosts?DonotvarydirectlywithsalesMaintenanceandRepairsExpenseAnalyzingExpensesRelationofsalestomaintenanceandrepairsexpense,bothacrosscompaniesandtime,mustbeinterpretedwithcare?Analysisandinterpretationusingthisratio?Isenhancedifwecandistinguishbetweenvariableandfixedportionsoftheseexpenses?Mustrecognizethediscretionarynatureoftheseexpenses?Bearonproductivityandearningsqualityassessments?ImpactsassetvaluationsAmortizationofSpecialCostsAnalyzingExpensesExpenditureforspecialcostscanberelatedtoandexpressedasapercentof:(1)revenues(2)netpropertyandequipmentAmortizationofspecialcostscanberelatedtoandexpressedasapercentof:(1)revenues(2)unamortizedspecialcosts(3)netpropertyandequipmentAmortizationofSpecialCostsAnalyzingExpensesRatiosinvolvingspecialcostsareusefulin:?Comparisonofannualtrendsintheserelations?Analysisofconsistencyinincomereporting?EvaluationofincomefortwoormorecompetitorsGeneralandAdministrativeExpensesAnalyzingExpensesMostarefixed—suchasrentandsalaryTendencyforincreases,especiallyinprosperoustimesGeneralandAdministrativeExpensesAnalyzingExpensesAnalysisofG&Ashouldfocuson: