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MBU652 Financial Statement Analysis - Part 1 (w/data from textbook)

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MBU652 Financial Statement Analysis - Part 1 (w/data from textbook)

  1. 1. MBU 652 Financial Decision Making Performance Measurements Part 1: Profitability (with financial statement data from textbook)
  2. 2. Categories of a Financial Statement Analysis  Profitability  Liquidity  Activity  Debt (Leverage)
  3. 3. Profitability  Return on Assets (ROA)  Return on Equity (ROE)  Price/Earnings Ratio(P/E Ratio)  Dividend Yield  Dividend Pay-Out Ratio
  4. 4. Return on Assets (ROA) ROA = ____Net Income___ Average Total Assets ROA = ____107.2___ 1591.7 + 1599.3 / 2 =
  5. 5. Return on Equity (ROE) ROE = ___Net Income___ Average Owners’ Equity ROE = ___107.2___ 908.7 + 983.8 / 2 =
  6. 6. Price/Earnings Ratio (P/E Ratio) P/E Ratio = Market Price of Common Stock Earnings Per Share P/E Ratio = 90.00_(Market Price) 2.50 (EPS)
  7. 7. Dividend Yield Dividend Yield = Annual Dividend per share Market Price Per Share Dividend Yield = _____.50_____ 90.00
  8. 8. Dividend Pay-Out Ratio Dividend = Annual Dividend Per Share Pay-Out Ratio Earnings Per Share Dividend = _____.50_____ Pay-Out Ratio 2.50

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