onInvestedCapital(财务报表分析,台湾中兴大学)

8CHAPTERReturnonInvestedCapitalMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.• Jointanalysisiswhereonemeasureis assessedrelativetoanother• Returnoninvestedcapital(ROI)isanimportant jointanalysisReturnonInvestedCapitalImportanceofJointAnalysisReturnonInvestedCapital

ROIRelationROIrelatesincome,orotherperformancemeasure,toacompany’slevelandsourceoffinancingROIallowscomparisonswithalternativeinvestmentopportunitiesRiskierinvestmentsareexpectedtoyieldahigherROIROIimpactsacompany’sabilitytosucceed,attractfinancing,repaycreditors,andrewardownersReturnonInvestedCapitalApplicationofROI(1)

evaluatingmanagerialeffective-ness(2)assessingprofitability(3)earningsforecasting(4)planningandcontrolROIisapplicableto:ReturnonInvestedCapitalEvaluatingManagerialEffectiveness• Managementis responsibleforall companyactivities• ROIisameasureofmanagerial effectivenessinbusinessactivities• ROIdependsontheskill,resourcefulness, ingenuity,andmotivationofmanagementReturnonInvestedCapitalMeasuringProfitability• ROIisanindicatorofcompany profitability• ROIrelateskeysummary measures:profitswithfinancing•ROIconveysreturnoninvested capitalfromdifferentfinancingperspectivesReturnonInvestedCapitalAssistsinForecastingEarnings• ROIlinkspast,current,andforecastedearningswith investedcapital• ROIaddsdiscipline toforecasting• ROIhelpsidentify optimisticorpessimistic forecasts• ROIaidsinevaluatingpriorforecastperformanceReturnonInvestedCapitalForPlanningandControlROIassistsmanagerswith:• Planning• Budgeting• Coordinatingactivities• Evaluatingopportunities• ControlComponentsofROIDefinitionReturnoninvestedcapitalisdefinedas:ComponentsofROIInvestedCapitalDefined• Nouniversalmeasure ofinvestedcapital exists• Differentmeasuresof investedcapitalreflect differentfinanciers’ perspectivesComponentsofROIAlternativeMeasuresofInvestedCapitalFiveCommonMeasures:• TotalAssets• Long-TermDebtPlusEquity• Equity• MarketValueofInvestedCapital• InvestorInvestedCapitalComponentsofROITotalAssets• Perspectiveisthatofitstotal financingbase• Calledreturnonassets(ROA)ROA:

measuresoperatingefficiency/performance

reflectsreturnfromallfinancing

doesnotdistinguishreturnby financingsourcesComponentsofROITotalAssetsSomeadjustthisinvestedcapitalbasefor:1.UnproductiveAssets2.IntangibleAssets3.AccumulatedDepreciationComponentsofROITotalAssetsUnproductiveAssetAdjustment•Assumesmanagementnotresponsiblefor earningareturnoncapitalnotinoperations• Excludesidleplant,facilitiesunder construction,surplusplant,surplus inventories,surpluscash,anddeferred chargesfrominvestedcapitalAdjustmentisnotvalidasitfailsto:

recognizethatmanagementhasdiscretion overallinvestment

assessoverallmanagementeffectivenessComponentsofROITotalAssetsIntangibleAssetAdjustment•Assumesskepticismofintangibleasset values• Excludesintangibleassetsfrom investedcapitalAdjustmentisnotvalidas:

Lackofinformationorincreased uncertaintydoesnotjustifyexclusionComponentsofROITotalAssetsAccumulatedDepreciationAdjustment• Assumesplantassetsmaintainedinprime condition• Assumesinappropriatetoassessreturnrelativetonetassets• Concernwithadecreasinginvestedcapital base• Includesanaddbackforaccumulateddepreciationon depreciableassetsAdjustmentisnotvalidas:

ROAanalysisfocusesontheperformance oftheentirecompany

Itisinconsistentwithcomputationofincomenetof depreciationexpense

Acquisitionsofnewdepreciableassetsoffsetadeclining capitalbase

Itfailstorecognizeincreasedmaintenancecostsasassets ageComponentsofROILong-TermDebtPlusEquityCapital• Perspectiveisthatofthetwomain suppliersoflong-termfinancing—long-termcreditorsandequityshareholders• Referredtoaslong-term capitalization

•Excludescurrentliability financingComponentsofROIEquityCapital•Perspectiveisthatofequity holders•Capturestheeffectofleverage (debt)capitalonequityholder return•Excludesalldebtfinancingand preferredequityComponentsofROIMarketValueofInvestedCapital• Assumescertainassetsnot recognizedinfinancialstatements•Usesthemarketvalueofinvested capital(debtandequity)ComponentsofROIInvestorInvestedCapital• Perspectiveisthatoftheindividual investor•Focusisonindividualshareholder,not thecompany• Usesthepurchasepriceofsecuritiesas investedcapitalComponentsofROIComputingInvestedCapital• Usuallycomputedusingaverage capitalavailablefortheperiod• Typicallyaddbeginningand endinginvestedcapitalamounts anddivideby2•Moreaccuratecomputationisto averageinterimamounts —quarterlyormonthlyComponentsofROIIncomeDefined• Definitionofincome(return)dependsondefinitionofinvested capital• Measuresofincomeincomputingreturnoninvestedcapitalmust reflectallapplicableexpensesfromtheperspectiveofthecapital contributors• Incometaxesarevaliddeductionsincomputingincomeforreturn oninvestedcapitalExamples:• Returnontotalassetscapitalusesincomebefore

interest

expenseanddividends• Returnonlong-termdebtplusequitycapitalusesincomebefore interestexpenseanddividends• Returnoncommonequitycapitalusesnetincomeafter deductionsforinterestandpreferreddividendsComponentsofROIAdjustmentstoInvestedCapitalandIncomeNumbersManyaccountingnumbersrequireanalyticaladjustment—seepriorchaptersSomenumbersnotreportedinfinancialstatementsneedtobeincludedSuchadjustmentsarenecessaryforeffectiveanalysisofreturnoninvestedcapitalComponentsofROIReturnonAssets--ROAComponentsofROIReturnonLong-TermDebtplusEquity[Alsocalledreturnonlong-termcapitalization]ComponentsofROIReturnonCommonEquity--ROCENetincome-PreferreddividendsTotalcommonshareholders’equity[WhenROCEishigherthanROA,itoftenreflectsfavorableimpactsofleverage]ROCEisapproximatedbyBasicearningspershareBookvaluepershareAnalyzingReturnonAssets--ROADisaggregatingROAProfitmargin:measuresprofitabilityrelativetosaleAssetturnover(utilization):measureseffectivenessingeneratingsalesfromassetsReturnonassets=ProfitmarginxAssetturnoverAnalyzingReturnonAssets--ROARelationBetweenProfitMarginandAssetTurnoverProfitmarginandassetturnoverareinterdependentADEGFHIBCYKJLNPXMOAnalyzingReturnonAssets--ROARelationBetweenProfitMarginandAssetTurnoverROA=5%FoodStoresAgricultureAmusementsHealthServicesMetalsPetroleumAirTransportationPaperBuildingMaterialsConstructionChemicalsFisheriesTobaccoOil&GasHotelsMuseumsRealEstateAutoDealersWholesaleTradeBuildersWholesale-NondurablesTransportationServiceAnalyzingReturnonAssets--ROAAssetTurnoverAnalysis• Assetturnovermeasuresthe intensitywithwhichcompaniesutilize assets• Relevantmeasureisthe amountofsales generatedSalestoCash:

Reflectstrade-offbetweenliquidityandaccumulationoflow-returnfundsSalestoReceivables:

Reflectstrade-offbetweenincreasedsalesandaccumulationoffundsinreceivablesSalestoInventories:

Reflectstrade-offbetweenfundsaccumulatedininventoryandthepotentiallossofcurrentandfuturesalesSalestoFixedAssets:

Reflectstrade-offbetweenfixedassetinvestmentshavinghighbreak-evenpointsandinvestmentsinmoreefficient,productiveassetswithhighsalespotentialSalestoOtherAssets:

Reflectstrade-offbetweenassetsheldforcurrentandfuturesalesandaccumulationoffundsinhigherriskassetsSalestoCurrentLiabilities:

ReflectsarelationbetweensalesandcurrenttradeliabilitiesAnalyzingReturnonAssets--ROADisaggregatingAssetturnoverAnalyzingReturnonCommonEquity--ROCERoleinEquityValuationwhereROCEisequaltonetincomeavailabletocommonshareholders(afterprefereddiviends)dividedbythebeginning-of-periodcommonequityThiscanberestatedintermsoffutureROCE:AnalyzingReturnonCommonEquity--ROCEDisaggregatingROCE• Adjustedprofitmargin:portionofeachsalesdollarremainingforcommon shareholdersafterprovidingforallcostsandclaims(includingpreferred dividends)• Asset

turnover(utilization):measureseffectivenessingeneratingsalesfrom assets• Leverage*:measurestheproportionofassetsfinancedbycommon shareholders*Alsocalledfinancialleverageandcommonleverage.ROCE

=Adjustedprofitmargin×Assetturnover×LeverageAdjustedprofitmargin=Pre-taxadjustedprofitmarginxRetentionrateAnalyzingReturnonCommonEquity--ROCEFurtherDisaggregationofAdjustedProfitMarginPre-taxadjustedprofitmargin:measureofoperatingeffectivenessRetentionrate:measureoftax-managementeffectiveness

ROCE=[(EBITprofitmargin×Assetturnover)–Interestburden]×Leverage×Retentionrate• EBITisearnings(income)beforeinterestandtaxes(and beforeanypreferreddividends)• EBITprofitmarginisEBITdividedbysales• Interestburdenisinterestexpensedividedbyaverage assetsThisdisaggregationhighlightseffectsofbothinterestandtaxesonROCEAnalyzingReturnonCom