LN12-ch13-AFM101s11

LN12-ch13-AFM101s11 - Chapter 13 Analyzing Financial...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Accounting, Third Canadian Edition 13-1 Chapter 13 Analyzing Financial Statements
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Accounting, Third Canadian Edition 13-2 FINANCIAL STATEMENT USERS . . . uses accounting data to make product pricing and expansion decisions. . . . use accounting data for investment, credit, tax, and public policy decisions. EXTERNAL DECISION MAKERS MANAGEMENT Understanding The Business
Background image of page 2
Financial Accounting, Third Canadian Edition 13-3 THREE TYPES OF FINANCIAL STATEMENT INFORMATION Past Performance Present Condition Future Performance Income, sales volume, cash flows, return- on-investments, EPS. Assets, debt, inventory, various ratios. Sales and earnings trends are good indicators of future performance. Understanding The Business
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Accounting, Third Canadian Edition 13-4 Investors Dividends Increase in share price Return on an equity security investment Understanding The Business
Background image of page 4
Financial Accounting, Third Canadian Edition 13-5 Economy-wide Factors Industry Factors Individual Company Factors Invest? No Yes The Investment Decision
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Accounting, Third Canadian Edition 13-6 Understanding a Company’s Strategy I need to know the company’s policies on product differentiation, pricing, and cost control to make my financial analysis more meaningful.
Background image of page 6
Financial Accounting, Third Canadian Edition 13-7 ROE Profit Driver Analysis ROE Net Profit Margin Asset Turnover Financial Leverage = × × Net Income Average Shareholders’ Equity Net Income Net Sales Net Sales Average Total Assets Average Total Assets Average Shareholders’ Equity × =
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
13-8 Profit Drivers and Business Strategy High-value or product-differentiation. High-value or product-differentiation. customers of the superiority of your product. customers of the superiority of your product. High-value or product-differentiation. High-value or product-differentiation. customers of the superiority of your product. customers of the superiority of your product. Low-Cost. Low-Cost. Rely on efficient management of accounts receivable, Rely on efficient management of accounts receivable, inventory and productive assets to produce inventory and productive assets to produce high asset turnover. high asset turnover. Low-Cost. Low-Cost. Rely on efficient management of accounts receivable, inventory and productive assets to produce inventory and productive assets to produce high asset turnover.
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2012 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

Page1 / 49

LN12-ch13-AFM101s11 - Chapter 13 Analyzing Financial...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online