TABLA RESUMEN TODAS LAS RATIOS (2012)

Resumen Inglés
Universidad Universidad Pompeu Fabra (UPF)
Grado International Business Economics - 2º curso
Asignatura Financial Statements Analysis
Año del apunte 2012
Páginas 3
Fecha de subida 22/06/2014
Descargas 4
Subido por

Descripción

Tabla resumen con la información de todas las ratios del curso y sus características.

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Name   Formula   Ideal  Value   Observations   Current  Ratio   Quick  Ratio   Cash  Ratio   WC  over  Assets   WC  over  CL   Gearing  ratio   Self  financing   debt   Distance  from   insolvence   Quality  of  debt   Interest  over   sales   Average  cost  of   debt   Average  cost  of   capital   Fixed  asset   turnover   Average  age  of   fixed  assets   Current  Assets   turnover   Stock  turnover   Debtors   turnover   Debtor   collection  per.   Creditor   Payment  Ratio   Debtor/Creditor   Current  Assets/S.T.  Liabilities   Cash+Debtors/S.T.  Liabilities   Cash  and  banks/S.T.  Liabilities   Working  capital/Assets   Working  capital/Current  Liabilities   Debt  capital/Equity+Debt  capital   Equity/Debt   1,5-­‐2   1   0,3     0,5-­‐1   0,4-­‐0,6   0,7-­‐1,5   Short  term  solvency  and  finding  liquidity  problems   Acid  test  (to  see  how  much  of  the  CR  are  inventories)   Taking  the  average  for  the  year.     Working  Capital:  Current  Assets-­‐Current  Liabilities   Business’  ability  to  meet  its  CL  using  working  capital.  If  <0,  ST  solvency  problems.   >0,6,  loosing  financial  flexibility/<0,4  not  taking  advantage  of  debt.     How  much  is  financed  by  firms’  resources   Total  Assets/Debt  Capital   1   Current  liabilities/Total  debt   Interest  costs/Sales   Low   0,04-­‐0,05   As  it  decreases  to  1,  business  moves  towards  insolvency.  If  <1,  business  is   technically  insolvent     <0,04:  they  could  be  higher.    >0,05  interest  costs  are  too  high   Interest  costs/Debt     Should  be  compared  with  average  cost  of  capital   Interest  costs+dividends/total   debt+equity   Sales/Fixed  Assets   Low     High   Acummulated  depreciation/Annual   depreciation  charge   Sales/Current  Assets     The  larger  the  ratio,  the  greater  the  quantity  of  sales  were  generated  by  the   utilization  of  fixed  assets   Management  of  fixed  assets   Sales/Stock   Sales/Debtors     High   High   The  larger  the  ratio,  the  greater  the  quantity  of  sales  were  generated  by  the   utilization  of  current  assets   Better  if  used:  Cost  of  sales/Stock   The  higher  the  ratio,  the  more  efficiently  debts  are  being  collected.     (Sales/Debtors)*365   Low   Include  VAT.  The  lower  the  days,  the  quicker  amounts  are  being  collected   (Creditors/Purchases)*365   High   Trade  creditors/Trade  debtors     VAT  included.  The  larger  this  ratio  is,  the  longer  the  business  is  taking  to  pays  .  If   Creditors’  day  >  debtors’  day  it  means  some  free  of  interest  way  of  financing.     WC  is  tied  up  in  debtors  is  financed  by  trade  creditors   High   Sales  Growth   Sales  per  empl.   Break-­‐even   point   Break-­‐even   cover   Effectiveness   Productivity   ROA   ROA  II   Sales  in  year  N/Sales  in  year  N-­‐1   Sales/Number  of  employees   Fixed  Costs/Contribution  per  unit   (selling  price-­‐variable  cost)   Sales/Break-­‐even   High   High   Low   Forecast  (profits)/Actual  (profits)   (Results)/Expenses   EBIT/Total  Assets   (Sales/Total  Assets)*(EBIT/Sales)   <=1   High   High     Profits,  sales,  production,  customers….   Results,  sales,  customers…   EBIT  to  know  prof  without  taking  into  account  interest  costs.  (ROA  >  Cost  finan)   First  equation:  Asset  turnover      Second  Equation:  Profit  margin.        ∆  ROA  =  ∆  Sales  and/or  ∆  Prices  and/or    ∇  assets  and/or  ∇  Costs.   ROE   Net  profit/Equity   High   ROE  II   (Net  profit/Sales)  *  (Sales/Assets)  *   (Assets/Equity)   (Sales/Assets)  *  (EBIT/Sales)  *   (Assets/Equity)  *  (EBT/EBIT)  *  (Net   profit/EBT)   (EBT/EBIT)*(Assets/Equity)     Compared  with  total  return  on  total  capital  employed:   (Net  profit+interest)/(Equity+debt)  <  ROE  (positive  level  of  gearing)   Margin.  Assets  turnover.  Gearing.  To  increase  ROE:  increase  profit  margin,  increase   turnover  of  increase  gearing.     Turnover.  Margin.  Gearing.  Fiscal  effect.         (Cash  flow-­‐divdends)/Sales   High   <1,  debt  increases  profitability:  good   <1  debt  decreases  profitability:  not  good   =1  doesn’t  affect  profitability.     The  growth  in  this  ratio  reflects  a  growth  in  the  generation  of  funds  from  sales.   Dividends/Net  Profits   (Net  profit+Depreciation)/Loans   Depends   High   Self  financing  gets  small  when  pay-­‐out  is  higher     Most  recent  market  price  per  share  /   Earnings  per  share   Total  dividends/Number  of  shares         Earnings  per  share:  net  profit/number  of  shares   If  high:  share  is  relatively  expensive.  Good  time  to  sell.   From  shareholders  point,  this  ratio  should  be  higher     Dividend  per  share/Most  recent   market  price     From  de  shareholder’s  point,  this  ratio  should  be  higher   ROE  III   Financial   leverage   Self-­‐financing   generated   Pay-­‐out   Repayment     Capacity   Price  Earnings   Ratio  (P/E)   Dividends  per   share   Profits  per   share   >1   High  G  and   FE  <1   >1   <1,  sales  are  decreasing.  The  same  with  EBIT,  EBT,  PROFIT   To  see  the  efficiency  of  our  employees.     Need  to  know:  p  and  q,  fixed  costs  and  variable  costs.  Firms  have  to  sell  that   number  in  order  not  to  have  losses  or  profits.     If  the  value  is  >1,  firm  is  generating  profits.     Working  capital   Current  assets-­‐Current  liabilities   Cash  Cycle   Raw  material  days-­‐  creditor  days  +   productions  days  +  finished  goods   days  +  debtor  days   Raw  material   (Stock  of  raw  materials/Annual   days   purchases)*365   Production  days   (Work-­‐in-­‐progress/Annual  production   costs)  *  365   Finished  goods   (Stock  of  finished  goods/Annual  cost  of   days   sales)  *  365   WC  requirem.   WC  requirement/Sales     PROBLEM   MEASURES  TO  TAKE   Positive     Equity  +  LT  liabilities  –  fixed  assets  or  perm.  Financing-­‐fixed  assets   Creditor  days  are  substracted  because  they  represent  a  period  during  which  the   business  obtains  interest  free  credit  from  its  suppliers.                 Low   As  low  to  reduce  the  likelihood  of  liquidity  problems.     Low  liquidity   Debt  swaps.  Improve  cash  and  maturity  cycle.  Increase  creditors  days   Not  enough  capital   Sell  Assets.  Increase  equity.  Acquire  grant  aid.  Reduce  cost  of  debt   Inefficient  use  of  assets   Increase  turnover.  Reduce  maturity  cycle  Subcontract  stages  of  the  production  cycle.  Just  in  time  inventory  method.  Increase  in   quality   Credit  management.  Discounts  for  early  payments.  Customers  vetting.  Credit  insurance.  Factoring.  Forfeiting   Marketing  plan.  Improve  products   Expense  reduction.  Zero-­‐based  budget.  Increase  productivity  -­‐>  Increase  motivation.  Reduce  mistakes.   Increase  profits.  Increase  gearing  (if  positive  effect).  Increase  assets  turnover.  Reduce  interest  costs.  Increase  ROA.  Increase   turnover.     Reduce  cost  of  debt.  Increase  ROE.   Late  payment  debtors   Insufficient  sales   Excessive  expenses   Insufficient  return   Negative  leverage     ...