Liquidity RatiosNet working capital to total assets ratio = Net working capital Total assets Current ratio = current assets current liabilities... Efficiency RatiosAsset turnover ratio =
Trang 1 Financial Analysis and Planning
Brealey and Myers Sixth Edition
Slides by
Trang 4Total liabilities and equity 1,406.1 1,450.0 43.9
Trang 5Executive Paper
Trang 10Liquidity Ratios
Net working capital
to total assets ratio =
Net working capital
Total assets
Current ratio = current assets
current liabilities
Trang 11Interval m easure = cash + m arketable securities + receivables
average daily expenditures from operations
Trang 12Efficiency Ratios
Asset turnover ratio = Sales
Average total assets
NW Cturnover = sales
average net working capital
Trang 13Efficiency Ratios
Days' sales in inventory = average inventory
cost of goods sold / 365
Inventory turnover ratio = cost of goods sold
average inventory
Average collection period = average receivables
average daily sales
Trang 14Profitability Ratios
Return on assets = EBIT - tax
average total assets
Net profit m argin = EBIT - tax
sales
Return on equity = earnings available for com m on stock
average equity
Trang 16Market Value Ratios
earnings per share
stock price
Trang 17Market Value Ratios
Market to book ratio = stock price
book value per share
Price per share = P = Div
r - g
0
1
Tobins Q = market value of assets
estimated replcement cost
Trang 18The DuPont System
Trang 19The DuPont System
EBIT - taxes
sales
Trang 20The DuPont System
profit margin
Trang 21The DuPont System
ROE = assets
equity x
sales assets x
EBIT - taxes
sales x
EBIT - taxes - interest
EBIT - taxes
Trang 22The DuPont System
ROE = assets
equity x
sales assets x
asset turnover
profit margin
debt burden