1、精品精品pptppt模板模板公司理财管理及财务管公司理财管理及财务管理知识分析理知识分析(ppt 37页页)精品精品pptppt模板模板oUnderstand the information provided by financial statementsoDifferentiate between book and market valuesoKnow the difference between average and marginal tax ratesoKnow the difference between accounting income and cash flowoCalcula
2、te a firms cash flow精品精品pptppt模板模板2.1 The Balance Sheet2.2 The Income Statement2.3 Taxes2.4 Net Working Capital2.5 Financial Cash Flow2.6 The Accounting Statement of Cash Flows2.7 Cash Flow Management精品精品pptppt模板模板oAnnual reportsoWall Street JournaloInternetnNYSE()nNASDAQ()nTextbook()oSECnEDGARn10K&
3、10Q reports精品精品pptppt模板模板qAn accountants snapshot of the firms accounting value at a specific point in timeqThe Balance Sheet Identity is:Assets Liabilities+Stockholders Equity精品精品pptppt模板模板2010200920102009Current assets:Current Liabilities:Cash and equivalents$140$107 Accounts payable$213$197 Accou
4、nts receivable294270 Notes payable5053 Inventories269280 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabilities:Fixed assets:Deferred taxes$117$104 Property,plant,and equipment$1,423$1,274 Long-term debt471458 Less accumulated depreciatio
5、n(550)(460)Total long-term liabilities$588$562 Net property,plant,and equipment873814 Intangible assets and other245221Stockholders equity:Total fixed assets$1,118$1,035 Preferred stock$39$39 Common stock($1 par value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury stock
6、(26)(20)Total equity$805$725Total assets$1,879$1,742Total liabilities and stockholders equity$1,879$1,742The assets are listed in order by the length of time it would normally take a firm with ongoing operations to convert them into cash.Clearly,cash is much more liquid than property,plant,and equip
7、ment.精品精品pptppt模板模板oWhen analyzing a balance sheet,the Finance Manager should be aware of three concerns:LiquidityDebt versus equityValue versus cost精品精品pptppt模板模板oRefers to the ease and quickness with which assets can be converted to cashwithout a significant loss in valueoCurrent assets are the mo
8、st liquid.oSome fixed assets are intangible.oThe more liquid a firms assets,the less likely the firm is to experience problems meeting short-term obligations.oLiquid assets frequently have lower rates of return than fixed assets.精品精品pptppt模板模板oCreditors generally receive the first claim on the firms
9、 cash flow.oShareholders equity is the residual difference between assets and liabilities.精品精品pptppt模板模板oUnder Generally Accepted Accounting Principles(GAAP),audited financial statements of firms in the U.S.carry assets at cost.oMarket value is the price at which the assets,liabilities,and equity co
10、uld actually be bought or sold,which is a completely different concept from historical cost.精品精品pptppt模板模板oMeasures financial performance over a specific period of timeoThe accounting definition of income is:Revenue Expenses Income精品精品pptppt模板模板Total operating revenuesCost of goods soldSelling,gener
11、al,and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:$71 Deferred:$13Net income Addition to retained earnings$43 Dividends:$43The operations section of the income statement reports the firms revenues and ex
12、penses from principal operations.$2,262 1,655 327 90$190 29$219 49$170 84$86精品精品pptppt模板模板Total operating revenues$2,262Cost of goods sold 1,655Selling,general,and administrative expenses 327Depreciation 90Operating income$190Other income29Earnings before interest and taxes$219Interest expense 49Pre
13、tax income$170Taxes 84 Current:$71 Deferred:$13Net income$86 Addition to retained earnings:$43 Dividends:$43The non-operating section of the income statement includes all financing costs,such as interest expense.精品精品pptppt模板模板Total operating revenuesCost of goods soldSelling,general,and administrati
14、ve expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:$71 Deferred:$13Net income Addition to retained earnings:$43 Dividends:$43Usually a separate section reports the amount of taxes levied on income.$2,262 1,655 327 90$19029$
15、219 49$170 84$86精品精品pptppt模板模板Total operating revenuesCost of goods soldSelling,general,and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:$71 Deferred:$13Net income Retained earnings:$43 Dividends:$43Net in
16、come is the“bottom line.”$2,262 1,655 327 90$19029$219 49$170 84$86精品精品pptppt模板模板oThere are three things to keep in mind when analyzing an income statement:Generally Accepted Accounting Principles(GAAP)Non-Cash ItemsTime and Costs精品精品pptppt模板模板qThe matching principle of GAAP dictates that revenues b
17、e matched with expenses.qThus,income is reported when it is earned,even though no cash flow may have occurred.精品精品pptppt模板模板qDepreciation is the most apparent.No firm ever writes a check for“depreciation.”qAnother non-cash item is deferred taxes,which does not represent a cash flow.qThus,net income
18、is not cash.精品精品pptppt模板模板qIn the short-run,certain equipment,resources,and commitments of the firm are fixed,but the firm can vary such inputs as labor and raw materials.qIn the long-run,all inputs of production(and hence costs)are variable.qFinancial accountants do not distinguish between variable
19、 costs and fixed costs.Instead,accounting costs usually fit into a classification that distinguishes product costs from period costs.精品精品pptppt模板模板 The one thing we can rely on with taxes is that they are always changing Marginal vs.average tax ratesMarginal the percentage paid on the next dollar ea
20、rnedAverage the tax bill/taxable income Other taxes精品精品pptppt模板模板oSuppose your firm earns$4 million in taxable income.nWhat is the firms tax liability?nWhat is the average tax rate?nWhat is the marginal tax rate?oIf you are considering a project that will increase the firms taxable income by$1 milli
21、on,what tax rate should you use in your analysis?精品精品pptppt模板模板qNet Working Capital Current Assets Current LiabilitiesoNWC usually grows with the firm 精品精品pptppt模板模板2010200920102009Current assets:Current Liabilities:Cash and equivalents$140$107 Accounts payable$213$197 Accounts receivable294270 Note
22、s payable5053 Inventories269280 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabilities:Fixed assets:Deferred taxes$117$104 Property,plant,and equipment$1,423$1,274 Long-term debt471458 Less accumulated depreciation(550)(460 Total long-ter
23、m liabilities$588$562 Net property,plant,and equipment873814 Intangible assets and other245221Stockholders equity:Total fixed assets$1,118$1,035 Preferred stock$39$39 Common stock($1 par value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury stock(26)(20)Total equity$805$
24、725Total assets$1,879$1,742Total liabilities and stockholders equity$1,879$1,742Here we see NWC grow to$275 million in 2010 from$252 million in 2009.This increase of$23 million is an investment of the firm.$23 million$275m=$761m-$486m$252m=$707-$455精品精品pptppt模板模板oIn finance,the most important item t
25、hat can be extracted from financial statements is the actual cash flow of the firm.oSince there is no magic in finance,it must be the case that the cash flow received from the firms assets must equal the cash flows to the firms creditors and stockholders.CF(A)CF(B)+CF(S)精品精品pptppt模板模板Cash Flow of th
26、e FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus
27、 long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)Total$42Operating Cash Flow:EBIT$219Depreciation$90Current Taxes-$71OCF$238精品精品pptppt模板模板Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Ca
28、pital spending (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital TotalCash Flow of Investors in the FirmDebt (Interest plus retirement of debt minus long-term debt financing)Equity (Dividends plus repurchase of equity minus new equity financing)TotalCapital S
29、pendingPurchase of fixed assets$198Sales of fixed assets-$25Capital Spending$173-173-23$42$366$42精品精品pptppt模板模板Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending (Acquisitions of fixed assets minus sales of fixed assets)Add
30、itions to net working capital TotalCash Flow of Investors in the FirmDebt (Interest plus retirement of debt minus long-term debt financing)Equity (Dividends plus repurchase of equity minus new equity financing)TotalNWC grew from$275 million in 2010 from$252 million in 2009.This increase of$23 millio
31、n is the addition to NWC.-173-23$42$366$42精品精品pptppt模板模板Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital TotalCash Flow of Investo
32、rs in the FirmDebt (Interest plus retirement of debt minus long-term debt financing)Equity (Dividends plus repurchase of equity minus new equity financing)Total-173-23$42$366$42精品精品pptppt模板模板Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxe
33、s)Capital spending (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital TotalCash Flow of Investors in the FirmDebt (Interest plus retirement of debt minus long-term debt financing)Equity (Dividends plus repurchase of equity minus new equity financing)TotalCash
34、Flow to CreditorsInterest$49Retirement of debt 73Debt service122Proceeds from new debt sales -86Total$36-173-23$42$366$42精品精品pptppt模板模板Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending (Acquisitions of fixed assets minus s
35、ales of fixed assets)Additions to net working capital TotalCash Flow of Investors in the FirmDebt (Interest plus retirement of debt minus long-term debt financing)Equity (Dividends plus repurchase of equity minus new equity financing)TotalCash Flow to StockholdersDividends$43Repurchase of stock 6Cas
36、h to Stockholders 49Proceeds from new stock issue -43Total$6-173-23$42$366$42精品精品pptppt模板模板Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending (Acquisitions of fixed assets minus sales of fixed assets)Additions to net workin
37、g capital TotalCash Flow of Investors in the FirmDebt (Interest plus retirement of debt minus long-term debt financing)Equity (Dividends plus repurchase of equity minus new equity financing)TotalThe cash flow received from the firms assets must equal the cash flows to the firms creditors and stockho
38、lders:-173-23$42$366$42精品精品pptppt模板模板oThere is an official accounting statement called the statement of cash flows.oThis helps explain the change in accounting cash,which for U.S.Composite is$33 million in 2010.oThe three components of the statement of cash flows are:nCash flow from operating activi
39、tiesnCash flow from investing activitiesnCash flow from financing activities精品精品pptppt模板模板To calculate cash flow from operations,start with net income,add back non-cash items like depreciation and adjust for changes in current assets and liabilities(other than cash).OperationsNet IncomeDepreciationD
40、eferred TaxesChanges in Assets and LiabilitiesAccounts ReceivableInventoriesAccounts PayableAccrued ExpensesOtherTotal Cash Flow from Operations$869013-24111618$202-8精品精品pptppt模板模板Cash flow from investing activities involves changes in capital assets:acquisition of fixed assets and sales of fixed as
41、sets(i.e.,net capital expenditures).Acquisition of fixed assetsSales of fixed assetsTotal Cash Flow from Investing Activities-$19825-$173精品精品pptppt模板模板Cash flows to and from creditors and owners include changes in equity and debt.Retirement of debt(includes notes)Proceeds from long-term debt sales-$
42、73 86Total Cash Flow from Financing$4DividendsRepurchase of stock-43Proceeds from new stock issue 43-6 Change in notes payable-3精品精品pptppt模板模板The statement of cash flows is the addition of cash flows from operations,investing,and financing.OperationsNet IncomeDepreciationDeferred TaxesChanges in Ass
43、ets and LiabilitiesAccounts ReceivableInventoriesAccounts PayableAccrued Expenses$869013-24111618OtherTotal Cash Flow from Operations$202-8Acquisition of fixed assetsSales of fixed assetsTotal Cash Flow from Investing Activities-$19825-$173Investing ActivitiesFinancing ActivitiesRetirement of debt(i
44、ncludes notes)Proceeds from long-term debt sales-$7386DividendsRepurchase of stockProceeds from new stock issueTotal Cash Flow from Financing-4343$4-6Change in Cash(on the balance sheet)$33Notes Payable -3精品精品pptppt模板模板oEarnings can be manipulated using subjective decisions required under GAAPoTotal cash flow is more objective,but the underlying components may also be“managed”nMoving cash flow from the investing section to the operating section may make the firms business appear more stable
