1、INVESTMENTS | BODIE, KANE, MARCUS Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 23 Financial Statement Analysis 1 INVESTMENTS | BODIE, KANE, MARCUS 23-2 Financial statement analysis can be used to discover mispriced securities. Financial accounting
2、data are widely available, but Accounting earnings and economic earnings are not always the same thing! Financial Statement Analysis 2 INVESTMENTS | BODIE, KANE, MARCUS 23-3 Income Statement: Profitability over time Balance Sheet: Financial condition at a point in time Statement of Cash Flows: Track
3、s the cash implications of transactions. Financial Statements 3 INVESTMENTS | BODIE, KANE, MARCUS 23-4 Table 23.1 Consolidated Statement of Income for Hewlett-Packard, 2009 4 INVESTMENTS | BODIE, KANE, MARCUS 23-5 Table 23.2 Consolidated Balance Sheet for Hewlett-Packard, 2009 5 INVESTMENTS | BODIE,
4、 KANE, MARCUS 23-6 Table 23.3 Statement of Cash Flows for Hewlett-Packard, 2009 6 INVESTMENTS | BODIE, KANE, MARCUS 23-7 Accounting Versus Economic Earnings Economic earnings Sustainable cash flow that can be paid to stockholders without impairing productive capacity of the firm Accounting earnings
5、Affected by conventions regarding the valuation of assets 7 INVESTMENTS | BODIE, KANE, MARCUS 23-8 Profitability Measures ROE measures profitability for contributors of equity capital. After-tax profit/book value of equity ROA measures profitability for all contributors of capital. EBIT/total assets
6、 8 INVESTMENTS | BODIE, KANE, MARCUS 23-9 Past vs. Future ROE ROE is a key determinant of earnings growth. Past profitability does not guarantee future profitability. Security values are based on future profits. Expectations of future dividends determine todays stock value. 9 INVESTMENTS | BODIE, KA
7、NE, MARCUS 23-10 Financial Leverage and ROE ROE can differ from ROA because of leverage. Leverage makes ROE more volatile. Let t=tax rate and r=interest rate, then: 10 Equity Debt ROAROA1ROErt INVESTMENTS | BODIE, KANE, MARCUS 23-11 Financial Leverage and ROE If there is no debt or ROA = r, ROE will
8、 simply equal ROA(1 - t). If ROA r, the firm earns more than it pays out to creditors and ROE increases. If ROA k, value is added to the firm. 25 INVESTMENTS | BODIE, KANE, MARCUS 23-26 Example 23.4 Wal-Mart In 2009, Wal-Marts cost of capital was 5.9%. Its ROA was 9.6% and its capital base was $115
9、billion. Wal-Marts EVA = (0.096-0.059) x $115 billion = $4.25 billion 26 INVESTMENTS | BODIE, KANE, MARCUS 23-27 Accounting Differences Inventory Valuation Depreciation Inflation and Interest Expense Fair Value Accounting Quality of Earnings International Accounting Conventions Comparability Problem
10、s 27 INVESTMENTS | BODIE, KANE, MARCUS 23-28 International Accounting Differences Reserves many other countries allow more flexibility in use of reserves Depreciation US allows separate tax and reporting presentations Intangibles treatment varies widely 28 INVESTMENTS | BODIE, KANE, MARCUS 23-29 Fig
11、ure 23.2 Adjusted Versus Reported Price-Earnings Ratios 29 INVESTMENTS | BODIE, KANE, MARCUS 23-30 The Graham Technique Rules for stock selection: Purchase common stocks at less than their working-capital value. Give no weight to plant or other fixed assets. Deduct all liabilities in full from assets. 30
