杜邦分析法 英文讲义ppt课件

1、Two parts: 1.The Du Pont Identity2.Using Financial Statement Information,1,What is ROE?,The starting point for a systematic analysis of a firms performance is its return on equity(ROE). defined as ROE=Net income/ Total equity ROE is a comprehensive indicator of a firms performance because it provide

2、s an indication of how well managers are employing the funds invested by the firms shareholders to generate returns.,2,About ROE,On average over long periods,large publicly traded firms in the U.S. generate ROEs in the range of 11 to 13 percent. In the long run, the value of the firms equity is dete

3、rmined by the relationship between its ROE and its cost of equity capital.That is, those firms that are expected over the long run to generate ROEs in excess of the cost of equity capital should have market values in excess of book value,and vice versa(反之亦然).,3,the Du Pont Identity,An expression tha

4、t breaks ROE down into three parts : Profit margin,Total asset turnover and Financial leverage(equity multiplier). it is also known as Dupont Analysis. The method is first used by a firm named Dupont which is a large chemical company.,4,the Du Pont Identity,Dupont Analysis is to analysis enterprises

5、 financial position by using the relationship between several financial ratios. Its basic idea is to divide ROE into a number of financial ratios product, which is help to further analysis the enterprises business performance.,5,Deriving the Du Pont Identity,ROE = NI / TE Multiply by 1 and then rear

6、range ROE = (NI / TE) (TA / TA) ROE = (NI / TA) (TA / TE) = ROA * EM Multiply by 1 again and then rearrange ROE = (NI / TA) (TA / TE) (Sales / Sales) ROE = (NI / Sales) (Sales / TA) (TA / TE) ROE = PM * TAT * EM,6,the Du Pont Identity,ROE = ROA*EM =PM * TAT * EM =Profit margin * Total asset turnover

7、 * Equity multiplier =Net income/ Sales * Sales/ Total assets * Total assets/ Total equity,7,Even though the above approach is popular used to decompose(分解) a firms ROE,it has several limitations. In the computation of ROA,the denominator(分母) includes the assets claimed by all providers of capital t

8、o the firm,but the numerator（分子）includes only the earnings avaliable to equity holders.The assets themselves includes both operating assets and financial assets such as cash and short-term investments.,8,Further,net income includes income from operating activities as well as interest income and expe

9、nses, which are consequences of fianancing decisions. Often it is useful to distinguish between these two drivers of performance.,9,Finally, the financial leverage ratio used above does not recongnize the fact that a firms cash and short-term investments are in essence negative debt(资本) because they

10、 can be used to pay down the debt on the companys balance sheet. These issues are addressed by an alternative approach to decomposing ROE. that is ROE=Operating ROA+Spread *Net financial leverage,10,Using the Du Pont Identity,Profit margin is a measure of the firms operating efficiency how well does

11、 it control costs Total asset turnover is a measure of the firms asset use efficiency how well does it manage its assets Equity multiplier is a measure of the firms financial leverage,11,Payout and Retention Ratios,Dividend payout ratio = Cash dividends / Net income 0.86 / 2.17 = 0.3963 or 39.63% A

12、firms dividends payout ratio is a measure of its dividend policy. Firms pay dividends for several reasons. They provide a way to return to shareholders any cash generated in excess of the firms operating and investment needs.,12,Payout and Retention Ratios,When there are information asymmetries (不对称

13、) between a firms managers and its shareholders, dividend payments can serve as a single to shareholders about managers expectation of the firms future prospects. Firms may also pay dividends to attract a certain type of shareholder base.,13,Payout and Retention Ratios,Retention ratio = Additions to

14、 retained earnings / Net income = 1 payout ratio 1.31 / 2.17 = 0.6037 = 60.37% Or 1 - 0.3963 =0 .6037 = 60.37% Retained ratio (Plowback ratio)used to measure the current in the total net income what is the percentage retained in the enterprise for development, it embodies(体现) the enterprise manageme

15、nt policies.,14,Determinants of Growth,Profit margin operating efficiency Total asset turnover asset use efficiency Financial leverage choice of optimal debt ratio Dividend policy choice of how much to pay to shareholders versus reinvesting in the firm,15,Table 3.6,16,Sustainable growth rate,Suatain

16、able growth rate is the rate at which a firm can grow while keeping its profitability and financial policies unchanged. A firms return on equity and its dividend payout policy determine the pool of funds avaliable for growth. Of course the firm can grow at a rate different from its sustainable growt

17、h rate if its profitability, payout policy,or financial leverage changes. Therefore,the sustainable growth rate provides a benchmark against which a firms growth plans can be evaluated.,17,Why Evaluate Financial Statements?,Internal uses Performance evaluation compensation and comparison between div

18、isions（部门） Planning for the future guide in estimating future cash flows External uses Creditors Suppliers Customers Stockholders,18,To evaluate fianancial statement can provide useful accounting information. Accounting information can help investors and creditors to make the reasonable decision.In

19、a market, enterprises capital mainly from shareholders and creditors,whether its now or potential investors and creditors.In order to make a reasonable investment and credit decisions, must have certain financial information.,19,Accounting information can assess and predict the future cash flow. Ent

20、erprise inside and outside users demand of information is mainly to help future economic decisions, predict the future management of the enterprise activities.The major content（内容） focused on financial projections，such as the cash flow,debt paying ability and so on.,20,Benchmarking,Ratios are not ve

21、ry helpful by themselves; they need to be compared to something Time-Trend Analysis Used to see how the firms performance is changing through time Internal and external uses Peer Group Analysis - Compare to similar companies or within industry -SIC and NAICS codes,21,Peer Group Analysis,Many such codes exsit-NAICS,SIC codes,etc. And they are widely used to classify businesses,industries and product catego