FRA : Reading 26. Financial Analysis Techniques

Reading: 26. Financial Analysis Techniques

a. describe tools and techniques used in financial analysis, including their uses and limitations. (page 121)

- Horizontal Common-Size : 특정 년도 기준 1로 하고 분석

 

b. classify, calculate, and interpret activity, liquidity, solvency, profitability, and valuation ratios. (page 127)

1. Activity : how efficiently manage

turnover ratio 와 days of something으로 구성

- receivables turnover

- inventory turnover

- payables turnover

- total asset turnover

- fixed asset turnover

- working capital turnover

 

- days of sales outstanding = avg collection period

- days of inventory on hand = avg inventory processing period

- number of days of payables = payable payment period

 

2. Liquidity : pay short-term liabilities

- current ratio

- quick ratio : Inv 차감

- cash ratio : Inv, A/R 차감

- defensive interval : 추가적인 수입없이 기업이 얼마나 버틸 수 있나

= (cash + m/s + receivables) / avg daily expenditures

- *cash conversion cycle : 판매cycle에서 cash가 다시 회수되는데 걸리는 기간

 

3. Solvency : long-term obligations

- debt-to-equity

- debt-to-capital

- debt-to-asset

- financial leverage

- interest coverage

- fixed charge coverage

= (EBIT + lease payment) / (interest + lease payment)

 

4. Profitability

- net profit margin

- pretax margin

- ROA

- ROTC(return on total capital)

- ROE

 

c. describe relationships among ratios and evaluate a company using ratio analysis. (page 137)

d. demonstrate the application of DuPont analysis of return on equity and calculate and interpret effects of changes in its components. (page 140)

DuPont system

1. net profit margin x asset T.O x leverage ratio

2. tax burden x int burden x EBIT margin x asset T.O x leverage ratio

tax burden = NI / EBT = EBT(1-t)/EBT = 1-t = tax retention ratio

int burden = EBT / EBIT

e. calculate and interpret ratios used in equity analysis and credit analysis. (page 144)  

sustainable growth rate

- g = rr x ROE

- rr(retention rate, 유보율) = 1 - div payout ratio

- div payout ratio = div declared / (net income

 

Coefficient of varation

- CV= S.D(??) / E(??)

- size-adjusted measure of varation

- CV가 높을수록 단위당 risk가 큰 것임

- CV sales = S.D(sales) / E(sales)

- CV net income = S.D(net income) / E(net income)

 

Z-score

- credit risk(predict firm bankruptcies) 분석 지표

- 5가지 재무비율에 각 가중치를 줘서 구함

- WC, retained earnings, revenue, EBIT to assets, M/B

f. explain the requirements for segment reporting and calculate and interpret segment ratios. (page 148) 

business segment

- 회사의 매출, 자산에 대한 비중이 10% 이상인 business 별로 재무제표 만들어야함

- 주석에 공시함

 

g. describe how ratio analysis and other techniques can be used to model and forecast earnings. (page 149) 

- key financial ratios는 안변한다고 가정하고 분석

- sensitivity analysis : Sales 1% 변화 -> NI 몇% ?

- scenario analysis

- simulation