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MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
MBU652 Financial Statement Analysis - Part 1: Profitability
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MBU652 Financial Statement Analysis - Part 1: Profitability

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  • 1. MBU 652 Financial Decision Making Performance Measurements Part 1: Profitability
  • 2. Categories of a Financial Statement Analysis  Profitability  Liquidity  Activity  Debt (Leverage)
  • 3. Profitability  Return on Assets (ROA)  Return on Equity (ROE)  Price/Earnings Ratio(P/E Ratio)  Dividend Yield  Dividend Pay-Out Ratio
  • 4. Return on Assets (ROA) ROA = ____Net Income___ Average Total Assets
  • 5. Return on Equity (ROE) ROE = ___Net Income___ Average Owners’ Equity
  • 6. Price/Earnings Ratio (P/E Ratio) P/E Ratio = Market Price of Common Stock Earnings Per Share
  • 7. Dividend Yield Dividend Yield = Annual Dividend per share Market Price Per Share
  • 8. Dividend Pay-Out Ratio Dividend = Annual Dividend Per Share Pay-Out Ratio Earnings Per Share

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