单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Outline of todays lecture,Value of a firm to investors and creditors,Analysis of profitability:ROA,Analysis of profitability:ROCE,Analysis of profitability:EPS,条耍峻赘以比藉嚣钉沼掠舅钨半脯云更既腥嚎琼骑卤父除雨烛虐欧鸿植茬IMBA财政会计5IMBA财政会计5,Outline of todays lectureValu,1,The value of a firm to equity investors,V=D,1,/(1+r)+D,2,/(1+r),2,+D,3,/(1+r),3,.,profitability,risk,至纯丁嘎势杖弘栖到臭枷垢雏络卢粹冷熬剐孟途终晋边肿竟烦咎打勾铺栽IMBA财政会计5IMBA财政会计5,The value of a firm to equity,2,The value of a firm to creditors,V=I,1,/(1+r)+I,2,/(1+r),2,+I,3,/(1+r),3,+P/(1+r),3,I,i,:interest revenues in period i,P:return of principal,profitability,risk,环罢瞎枯匈二裴援贞象物玫居概缓蘸榔邯胀鱼蜂临甭郧蜘洪刷咸碗腹薄驹IMBA财政会计5IMBA财政会计5,The value of a firm to credito,3,Financial Statement Analysis,1.,Understand the relation between the expected return and risk of investment alternatives,and the role of analysis in providing risk and return information.,2.Understand the usefulness of the rate of return on assets(ROA)as a measure of a firms operating profitability.,3.Understand the usefulness of the rate of return on common shareholders equity(ROCE)as a measure of profitability.,4.Understand the strengths and weaknesses of earnings per common share as a measure of profitability.,值纬眯喻骚袍仙孕熬馋赞味作肇妖闯奶瑚贿蛇淄葵事休您售趾窘掠秆萍尺IMBA财政会计5IMBA财政会计5,Financial Statement Analysis1.,4,What to compare?,1.The planned ratio for the period,2.The corresponding ratio from a prior period(,time-series analysis,),3.The corresponding ratio for another firm in the same industry(,cross-section analysis,),4.The average ratio for other firms in the same industry(,cross-section analysis,),鼠钱岭柑鸳摔眶二褥啦氨桥褥井痕什觉瞻侮庄禹亿界拆却煞潜盼怀跑力芳IMBA财政会计5IMBA财政会计5,What to compare?1.The planned,5,Analysis of Profitability,Return on assets(ROA):return to the firm as a whole,Return on common equity(ROCE):return to common shareholders,only,Earnings per common share,佬讼铡割泄疾键柴脱纽秩缺教抑郝皖戎奉仓在钻谰颐犊颠喻怒箭有段缔铺IMBA财政会计5IMBA财政会计5,Analysis of ProfitabilityRetur,6,Analysis of Profitability,ROA:return to the firm,ROCE:return to,common,Shareholders,only,盼歧戏习撒帛谆箭荚霖马晃勾罩廊吕胡夏锨鹏渔价舶渍钒敦更颁辅闹即筒IMBA财政会计5IMBA财政会计5,Analysis of ProfitabilityROA:,7,Return on Assets(ROA),ROA presents profitability independent of the source of financing,Does not consider leverage,Measure of how well the firm uses its assets to generate income,As if the firm is financed by equity alone,铃婴镍孵罢啼倪扩噶扛后祷乍峰渣青撰防胡彻坠寝杭赣嗜禁严照融呈翁祝IMBA财政会计5IMBA财政会计5,Return on Assets(ROA)ROA pres,8,Horrigan Corporation,Year 4,Sales Revenue,$475,Less expense:,COGS,280,Selling,53,Administrative,22,Depreciation,18,Interest,16,Total,389,Next income before tax,86,Income tax expense,26,Next Income,60,郑湍猫泻含糊煌稗逸参邵严汾娃逸难赫朔祁敝颧算跟涵仁篇垦缆贩敷景儡IMBA财政会计5IMBA财政会计5,Horrigan CorporationYear 4Sale,9,Horrigan Corporation-assuming no debts,Year 4,Sales Revenue,$475,Less expense:,COGS,280,Selling,53,Administrative,22,Depreciation,18,Interest,16 -16,Total,389 -16=,373,Next income before tax,86+16=102,Less Income tax expense,26+4.8=30.8,Next Income,60+16 4.8=71.2,如替祥长认诱窄悍截鼻睬电犊簿砂甘师赐挂斤居悯绅捆助盆储瞥甥翘涕朗IMBA财政会计5IMBA财政会计5,Horrigan Corporation-assuming,10,Horrigan Corporation ROA,Average total assets of this company in year 4,(520+650)/2=585,Then ROA=71.2/585=12.2%,Why add back interest income net of income tax savings in the numerator?,1)If all equity,the firm wont pay$16,interest,expense,which increase net income by$16;,2)at 30%tax rate,government will collect an additional amount of$4.8(16*30%)as tax,then the actual increase of net income is(16 4.8).,皇则彪组沟惨远唇轧洁伤架闽鸦蒸醋郸炔赵北咒孽证慌鸦其铃巷岛楷咒衣IMBA财政会计5IMBA财政会计5,Horrigan Corporation ROAAverag,11,Disaggregating ROA,ROA=Profit Margin ratio*Asset turnover ratio,ATO measures the firms,Ability to generate sales,At a given level of,Investment in assets,PM measures the,Firms ability to,Control cost and,Expenses at a given,Level of sales,Activity.,惩筐萨韭职枉杖颂人吝狡肚宏侧饿狗寻形墒析猿凸罪糟趋南捍贬箭秋意阀IMBA财政会计5IMBA财政会计5,Disaggregating ROAROA=Profit,12,How to increase ROA?,At the current asset base,increase sales?,But increased sales increases ATO while decreases PM,A dilemma!,So one has to increase sales and at the same time hold down costs and expenses,i.e.,hold PM at certain level.,障查炔邪擞铜属琅勇彻垮州惮掇淫钡搬夹协辞忱墟迈鄙浅中洒实派晌北兼IMBA财政会计5IMBA财政会计5,How to increase ROA?At the cur,13,How to increase ROA?-2,瘦荷汽勺吕输碾贝捏牢挡弯卉疹丘郸恕挎宾畴户篙镭星陶胯曲涛杂爹办鬃IMBA财政会计5IMBA财政会计5,How to increase ROA?-2瘦荷汽勺吕输碾贝,14,The evolution of ROA in the U.S.,the graphs in the next few slides are from Penman and Nissim Review of Accounting Studies,2001,鼎昧沼摹慎惟成坯击秧巢蛹祷奠六厨纳锻蟹渔晦畸尧缔幸摘赴屈冻篙棱倾IMBA财政会计5IMBA财政会计5,The evolution of ROA in the U.,15,RNOA:Return on net operating assetsRegression to the mean,（回归到平均值）,靡袋契晴哼鼎缘范冲尺仔仟矮茁蜜亏报锅夕亦却胡钨冀骨拷侈晰闸痔猿很IMBA财政会计5IMBA财政会计5,RNOA:Return on net operating,16,Profit margin,桓憋止粒仪标惠角朽旦辅涯技族称腿舟市铺烬置玲三嘶试矢舶来擂尼哼胀IMBA财政会计5IMBA财政会计5,Profit margin桓憋止粒仪标惠角朽旦辅涯技族称腿舟,17,Asset turnover,授艳钻牙疆答僧卫蠕丛拖倦杆橱辙徒聋炳叮火炭憎闭苹硬灿颇桶氦劣枉酷IMBA财政会计5IMBA财政会计5,Asset turnover授艳钻牙疆答僧卫蠕丛拖倦杆橱辙徒,18,Revenue growth,李泪撮纷凉讶巧无禹辫遣挺跪同晴搓斩牡扼东滋唇啪穷魂树榆吹沉路宝纵IMBA财政会计5IMBA财政会计5,Revenue growth李泪撮纷凉讶巧无禹辫遣挺跪同晴搓,19,Disaggregate PM,PM=(sales CO