投资学英文版课件：Chap019 Financial Statement Analysis

1、CHAPTER 19Financial Statement Analysis1Financial statement analysis can be used to discover mispriced securities.Financial accounting data are widely available, butAccounting earnings and economic earnings are not always the same thing!Financial Statement Analysis2Income Statement: Profitability ove

2、r timeBalance Sheet: Financial condition at a point in timeStatement of Cash Flows: Tracks the cash implications of transactions.Financial Statements3Table 19.1 Consolidated Statement of Income for Hewlett-Packard, 20094Table 19.2 Consolidated Balance Sheet for Hewlett-Packard, 20095Table 19.3 State

3、ment of Cash Flows for Hewlett-Packard, 20096Accounting Versus Economic EarningsEconomic earningsSustainable cash flow that can be paid to stockholders without impairing productive capacity of the firmAccounting earningsAffected by conventions regarding the valuation of assets7Profitability Measures

4、ROE measures profitability for contributors of equity capital.After-tax profit/book value of equityROA measures profitability for all contributors of capital.EBIT/total assets8Past vs. Future ROEROE is a key determinant of earnings growth.Past profitability does not guarantee future profitability.Se

5、curity values are based on future profits.Expectations of future dividends determine todays stock value.9Financial Leverage and ROEROE can differ from ROA because of leverage.Leverage makes ROE more volatile.Let t=tax rate and r=interest rate, then:10Financial Leverage and ROEIf there is no debt or

6、ROA = r, ROE will simply equal ROA(1 - t).If ROA r, the firm earns more than it pays out to creditors and ROE increases.If ROA k, value is added to the firm.25Example 19.4 Wal-MartIn 2009, Wal-Marts cost of capital was 5.9%. Its ROA was 9.6% and its capital base was $115 billion.Wal-Marts EVA = (0.0

7、96-0.059) x $115 billion = $4.25 billion26Accounting DifferencesInventory ValuationDepreciationInflation and Interest ExpenseFair Value AccountingQuality of EarningsInternational Accounting ConventionsComparability Problems27International Accounting DifferencesReserves many other countries allow more flexibility in use of reservesDepreciation US allows separate tax and reporting presentationsIntangibles treatment varies widely28Figure 19.2 Adjusted Versus Reported Price-Earnings Ratios29The Graham TechniqueRules for stock selection:Purchase common stocks at less