MGAB02H3 Lecture : Chapter 13 Notes.docx

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taupearmadillo641

10 Apr 2012

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Diff. users have diff. needs diff. needs require diff. ratio analysis assess the risks associated with the return. Concerns of creditors: short and long term liquidity. Time series analysis trend analysis information for a single company is compared over time on a year over year basis. Md+a (management discussion + analysis) min. 10 years comparison e. g. change in sales volume each year for its existing stores. Provides insights concerning a company"s relative performance by comparisons with similar companies within the same industries. Gov. has sic (standard industry clarifications) info that provides useful metrics for comparison purposes. Ratio (percentages) analysis analytical tool designed to identify significant relationships; it measures the proportional relationship b/w 2 f/s amounts. Uses % to allow users to compare results from diff. sizes of companies within the same industry revenue is the base line at 100% (on income statement) total assets is base line at 100% (on balance sheet)

Related Questions

Choose 3 publicly traded companies in the same industry and perform a DuPont analysis of each companyâs return on equity. Write a 1-2 page comparison of the companies based on your analysis. Be sure somewhere in comparison or in an appendix to show your actual calculations so I can see what numbers you are comparing. Thank you so much.

erinlouse811

Users of financial statements can apply several analytical tools in order to make intracompany and intercompany comparisons related to balance sheet information. Common-size analysis, rate of change analysis, and various ratios can be used to evaluate information on the balance sheet. Choose at least one analytical tool and discuss it in detail. Explain what the tool measures. Describe the steps involved in using the tool. Discuss the usefulness of the information that the tool provides the user. What are the pros and cons associated with the measure? Are there better ways to measure the performance under review? Do you agree with the pros and cons they have presented? Is there a better way to analyze the performance measurements they have chosen

plumgerbil168

NEED HELP ASAP PLEASE!!!

An annual report provides information about a company'sfinancial condition.

True False

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A company reports total assets of $850,000 and stockholders'equity of $500,000. Calculate the debt ratio.

A. 39.75%

B. 58.23%

C. 40.00%

D. 41.18%

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The price/earnings ratio shows the market price of $1 ofearnings.

True False

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Benchmarking is the practice of comparing a company with otherleading companies.

True False

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Which of the following types of financial statement analysiswould be used to see how a company's operating expenses as apercentage of net sales have changed from one year to the next?

A. Analysis of internal control system

B. Vertical analysis

C. Ratio analysis

D. Horizontal analysis

================================================================================

indigohare858

MGAB02H3 Lecture : Chapter 13 Notes.docx

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