Financial statements provide essential information about a company's financial performance and position over a period of time. The key financial statements are the income statement, balance sheet, statement of cash flows, and statement of retained earnings. Ratio analysis is used to evaluate a company's liquidity, asset management, debt management, and profitability by calculating financial ratios and comparing them over time and to other companies. While financial statement analysis provides useful insights, results must be interpreted carefully due to limitations such as differences in accounting treatments between companies.
Simplifying Financial Performance ManagementCFO Group
1. What is Financial Performance Management?
– Relationship to other “hot” topics
– Why we think it’s important to you as CIMA members
2. Performing a self-assessment health check
– Effectiveness and efficiency scores
– Solution roadmap and business case
3. Implementing a solution
– Critical success factors
– How-to guide for projects
Get a sample on Financial statement analysis explaining how equity investors have the objectives to know the business future earning capacity, growth potential and security of their holdings. All the investors are very much interested to get higher amount of returns. Therefore, they make risk and return analysis associated with their invested funds. Lenders such as bond investors have the objectives to know the short term as well as long term solvency of the business (Bushman and Smith, 2001).
Financial and operational Performance Management John Berry
This is an overview of the Financial performance management solution from IBM. These slide goes through why IBM is different and what are some challenges that are faced by different clients. We also show a list of clients that are already using these solutions.
Simplifying Financial Performance ManagementCFO Group
1. What is Financial Performance Management?
– Relationship to other “hot” topics
– Why we think it’s important to you as CIMA members
2. Performing a self-assessment health check
– Effectiveness and efficiency scores
– Solution roadmap and business case
3. Implementing a solution
– Critical success factors
– How-to guide for projects
Get a sample on Financial statement analysis explaining how equity investors have the objectives to know the business future earning capacity, growth potential and security of their holdings. All the investors are very much interested to get higher amount of returns. Therefore, they make risk and return analysis associated with their invested funds. Lenders such as bond investors have the objectives to know the short term as well as long term solvency of the business (Bushman and Smith, 2001).
Financial and operational Performance Management John Berry
This is an overview of the Financial performance management solution from IBM. These slide goes through why IBM is different and what are some challenges that are faced by different clients. We also show a list of clients that are already using these solutions.
Prepared by: Group 1
Leader:
Bau, Ella Mae G.
Members:
Adem, Angelie Lyka L.
Amper, Catherine Mae S.
Atienza, Trisha Lane M.
Babela, Ma. Ella V.
Bagang, Aleli M.
Bartolome, Kristine Joy G.
Bayani, Emanuel M.
Cabrera, Kathleen Anne A.
This presentation provides an overview of the goals and expected results of financial analysis. Typical ratios, financial account red flags and signs of financial shenanigans are listed as well.
Do you have the right tools to measure your financial performance? Do you know what elements are necessary to guide your business? Based on last year's rave reviews, Autotask's own Chief Financial Officer, Vince Zumbo, will return to lay out the fundamentals of planning and monitoring your financials for success. Vince will be aided by Autotask Product Manager Joe Rourke who will demonstrate how you can apply what you've learned by leveraging Autotask to support your business' optimal financial health. This session is full of tips, templates and insights that are used by financial professionals today and can be used by organizations of all sizes.
[Presenters: Vince Zumbo & Patrick Burns, Autotask]
Overview of Corporate Finance in India a presentationfootydigarse
Slide 1: Introduction
Welcome to the presentation on Corporate Finance in India.
Overview of the financial landscape and key aspects of corporate finance.
Slide 2: Importance of Corporate Finance
Explanation of why corporate finance is vital for businesses.
Role in maximizing shareholder value, strategic decision-making, and capital allocation.
Slide 3: Financial Markets in India
Overview of India's financial markets: stock exchanges, bond markets, money markets.
Regulatory bodies such as SEBI (Securities and Exchange Board of India).
Slide 4: Sources of Corporate Finance
Equity financing: IPOs, rights issues, private placements.
Debt financing: bank loans, corporate bonds, debentures.
Hybrid instruments: convertible bonds, preference shares.
Slide 5: Capital Structure Decisions
Explanation of capital structure and its importance.
Factors influencing capital structure decisions.
Trade-off between debt and equity financing.
Slide 6: Valuation Methods
Common valuation methods in India: Discounted Cash Flow (DCF), Comparable Company Analysis (CCA), Precedent Transactions Analysis.
Importance of accurate valuation for investment decisions.
Slide 7: Corporate Governance
Overview of corporate governance principles in India.
Role of the board of directors, transparency, and accountability.
Slide 8: Risk Management
Types of financial risks faced by Indian corporations: market risk, credit risk, operational risk.
Risk management strategies: hedging, diversification, insurance.
Slide 9: Mergers and Acquisitions (M&A)
Trends in M&A activity in India.
Motivations behind M&A transactions.
Regulatory framework and approval process.
Slide 10: Case Studies
Analysis of notable corporate finance transactions in India.
Learnings from successful and unsuccessful deals.
Slide 11: Future Outlook
Emerging trends and opportunities in Indian corporate finance.
Potential challenges and how to address them.
Slide 12: Conclusion
Recap of key points covered in the presentation.
Importance of effective corporate finance management for sustainable growth.
Slide 13: Questions and Discussion
Open the floor for questions and discussion.
Prepared by: Group 1
Leader:
Bau, Ella Mae G.
Members:
Adem, Angelie Lyka L.
Amper, Catherine Mae S.
Atienza, Trisha Lane M.
Babela, Ma. Ella V.
Bagang, Aleli M.
Bartolome, Kristine Joy G.
Bayani, Emanuel M.
Cabrera, Kathleen Anne A.
This presentation provides an overview of the goals and expected results of financial analysis. Typical ratios, financial account red flags and signs of financial shenanigans are listed as well.
Do you have the right tools to measure your financial performance? Do you know what elements are necessary to guide your business? Based on last year's rave reviews, Autotask's own Chief Financial Officer, Vince Zumbo, will return to lay out the fundamentals of planning and monitoring your financials for success. Vince will be aided by Autotask Product Manager Joe Rourke who will demonstrate how you can apply what you've learned by leveraging Autotask to support your business' optimal financial health. This session is full of tips, templates and insights that are used by financial professionals today and can be used by organizations of all sizes.
[Presenters: Vince Zumbo & Patrick Burns, Autotask]
Overview of Corporate Finance in India a presentationfootydigarse
Slide 1: Introduction
Welcome to the presentation on Corporate Finance in India.
Overview of the financial landscape and key aspects of corporate finance.
Slide 2: Importance of Corporate Finance
Explanation of why corporate finance is vital for businesses.
Role in maximizing shareholder value, strategic decision-making, and capital allocation.
Slide 3: Financial Markets in India
Overview of India's financial markets: stock exchanges, bond markets, money markets.
Regulatory bodies such as SEBI (Securities and Exchange Board of India).
Slide 4: Sources of Corporate Finance
Equity financing: IPOs, rights issues, private placements.
Debt financing: bank loans, corporate bonds, debentures.
Hybrid instruments: convertible bonds, preference shares.
Slide 5: Capital Structure Decisions
Explanation of capital structure and its importance.
Factors influencing capital structure decisions.
Trade-off between debt and equity financing.
Slide 6: Valuation Methods
Common valuation methods in India: Discounted Cash Flow (DCF), Comparable Company Analysis (CCA), Precedent Transactions Analysis.
Importance of accurate valuation for investment decisions.
Slide 7: Corporate Governance
Overview of corporate governance principles in India.
Role of the board of directors, transparency, and accountability.
Slide 8: Risk Management
Types of financial risks faced by Indian corporations: market risk, credit risk, operational risk.
Risk management strategies: hedging, diversification, insurance.
Slide 9: Mergers and Acquisitions (M&A)
Trends in M&A activity in India.
Motivations behind M&A transactions.
Regulatory framework and approval process.
Slide 10: Case Studies
Analysis of notable corporate finance transactions in India.
Learnings from successful and unsuccessful deals.
Slide 11: Future Outlook
Emerging trends and opportunities in Indian corporate finance.
Potential challenges and how to address them.
Slide 12: Conclusion
Recap of key points covered in the presentation.
Importance of effective corporate finance management for sustainable growth.
Slide 13: Questions and Discussion
Open the floor for questions and discussion.
This powerpoint presentations briefs about:
Financial ratios
Categories of Financial ratios
Generating stock ideas
The Due diligence – Checklist
Equity Research
Hello, this slide will take you through the essentials of financial report, Fundamental concepts of Balance Sheet, Profit & Loss, Cash Flow, Ratio Analysis etc. For a detailed course please visit https://excelfinanceacademy.zenler.com/
My Business is Growing, Now What? Financial Management Skills for the Entrepr...McKonly & Asbury, LLP
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In detail description about Financial Statements which includes Balance sheet, Income statement, Cash Flow and Statement of Retained Earning. Also there is explanation on Business Model Canvas
Improving profitability for small businessBen Wann
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2. Outline
• Meaning of Financial Statements and Financial Statement Analysis
• Significance of Financial Statements
• Types of Financial Statements
• Income Statement
• Balance Sheet
• Cash Flow Statement
• Statement of Retained Earnings
• Use of Financial Statement Analysis
• Ratio Analysis including Du Pont Analysis
• Limitations of Financial Statement Analysis
3. Financial Statement Accounting
•Financial analysis is a process of selecting,
evaluating, and interpreting financial data, along
with other pertinent information, in order to
formulate an assessment of a company’s present
and future financial condition and performance.
•Financial statements are summaries of the
operating, financing, and investment activities of a
firm.
4. • According to the Financial Accounting Standards Board (FASB), the financial
statements of a firm should provide sufficient information that is useful to
• investors and
• creditors
• in making their investment and credit decisions in an informed way.
• The financial statements are expected to be prepared in accordance
with a set of standards known as generally accepted accounting
principles (GAAP).
• The financial statements of publicly traded firms must be audited at
least annually by independent public accountants.
• The auditors are expected to attest to the fact that these financial
statements of a firm have been prepared in accordance with GAAP.
5. Significance of Financial Statements
• Wall Street analysts and other sophisticated investors prefer such
financial disclosure documents as 10-Ks, which contain more detailed
information about the company
• Financial statements summarize and provide an overview of events
relating to the functioning of a firm.
• Financial statement analysis helps identify
• a firm’s strengths and
• weaknesses
• so that management can take advantage of a firm’s strengths and
make plans to counter weaknesses of the firm.
6. • The strengths must be understood if they are to be used to proper
advantage and weaknesses must be recognized if corrective action
needs to be taken
• For example, are inventories adequate to support the projected
level of sales?
• Does the firm have too heavy an investment in account receivable?
• Does large account receivable reflect a lax collection policy?
• To ensure efficient operations of a firm’s manufacturing facility,
does the firm have too much or too little invested in plant and
equipment?
• Financial statement analysis provides answers to all of these
questions.
7. Types of Financial Statements and Reports
The Income Statement
The Balance Sheet
The Statement of Retained
Earnings
The Statement of Cash Flows
8. The Income Statement
• An income statement is a summary of the revenues and
expenses of a business over a period of time, usually either
one month, three months, or one year.
• Summarizes the results of the firm’s operating and financing
decisions during that time.
• Operating decisions of the company apply to production and
marketing such as sales/revenues, cost of goods sold,
administrative and general expenses (advertising, office
salaries)
9. • Results of financing decisions are reflected in the remainder
of the income statement.
• When interest expenses and taxes are subtracted from EBIT,
the result is net income available to shareholders.
• Net income does not necessarily equal actual cash flow from
operations and financing.
• Provides operating income/earnings before interest and
taxes (EBIT)
10. The Balance Sheet
A summary of the assets, liabilities, and equity of a business at a particular point in time, usually at the end of the firm’s fiscal
year.
Assets = Liabilities + Equity
(Resources of the (Obligations of (ownership left over
business enterprise) the business) Residual)
Fixed Assets Long-term Common stock outstanding
(Plant, Machinery, Equipment (Notes, bonds, & Additional paid-in capital
Buildings) Capital Lease Retained Earnings
Current Assets Obligation)
(Cash, Marketable Securities, Current Liabilities
Account Receivable, Inventories) (Accounts Payable,
Wages and salaries,
Short-term loans
Any portion of long-term
Indebtedness due in one-year)
11. The Statement of Cash Flows
• The statement is designed to show how the firm’s operations have
affected its cash position and to help answer questions such as these:
• Is the firm generating the cash needed to purchase additional fixed
assets for growth?
• Is the growth so rapid that external financing is required both to
maintain operations and for investment in new fixed assets?
• Does the firm have excess cash flows that can be used to repay
debt or to invest in new products?
12. Ratio Analysis
• Financial statements report both on a firm’s position at a
point in time and on its operations over some past period.
• From management’s viewpoint, financial statement analysis
is useful both as a way to
• anticipate future conditions and
• more important, as a starting point for planning actions
• that will influence the future course of events or
• to show whether a firm’s position has been improving or
deteriorating over time.
13. • Ratio analysis begins
• with the calculation of a set of financial ratios
• designed to show the relative strengths and
• weaknesses of a company as compared to
• Other firms in the industry
• Leadings firms in the industry
• The previous year of the same firm
• Ratio analysis helps to show whether the firm’s position has
been improving or deteriorating
• Ratio analysis can also help plan for the future
14. Types of Ratios
• Liquidity Ratios
Current Ratio
Quick Ratio/Acid Test Ratio
• Asset Management Ratios
Inventory Turnover Ratio
Days Sales Outstanding
Fixed Assets Turnover Ratio
Total Assets Turnover Ratio
• Debt Management Ratio
Total Debt to Total Assets Ratio
Times Interest Covered Ratio
16. Liquidity Ratio
• A liquid asset is one that can be easily converted into
cash at a fair market value
• Liquidity question deals with this question
•Will the firm be able to meet its current
obligations?
• Two measures of liquidity
•Current Ratio
•Quick/Acid Test Ratio
17. Asset Management Ratio
• Asset management ratio measures how effectively the
firm is managing/using its assets
• Do we have too much investment in assets or too little
investment in assets in view of current and projected
sales levels?
• What happens if the firm has
•Too much investment in assets
•Too little investment in assets
18. • Inventory Turnover Ratio
•Measures the efficiency of Inventory Management
•A high ratio indicates that inventory does not
remain in warehouses or on shelves, but rather
turns over rapidly into sales
• Two cautions
•Market prices for sales and inventories at cost
•Sales over the year and inventory at the end of the
year
19. • Days Sales Outstanding (DSO)
•To appraise the quality of accounts receivables
•Average length of time that the firm must wait after
making a sale before receiving cash from customers
•Measures effectiveness of a firm credit policy
•Indicates the level of investment needed in
receivables to maintain firm’s sales level
• What happens if this ratio is
•Too high, or
•Too low
20. • Fixed Assets Turnover Ratio
• Measures efficiency of long-term capital investment
• How effectively a firm is using its plant and machinery to
generate sales?
• How much fixed assets are needed to achieve a particular
level of sales?
• Cautions
• Total Asset Turnover Ratio
• Measure efficiency of total assets for the company as a
whole or for a division of the firm
• Core competency
21. Debt Management Ratio
• Implications of use of borrowings
•Creditors look to Stockholders’ equity as a safety
margin
•Interest on borrowings is a legal liability of the firm
•Interest is to be paid out of operating income
•Debt magnifies return and risk to common
stockholders
22. • Total Debt to Total Assets Ratio
•Measures percentage of assets being financed
through borrowings
•Too high a number means increased risk of
bankruptcy
• Leverage
•What percentage of total assets are being financed
through equity?
23. • Times Earned Interest (TIE)
•Measure the extent to which operating income can
decline before the firm is unable to meet its annual
interest costs
•Failure to pay interest can result in legal action by
creditors with possible bankruptcy for the firm
24. Profitability Ratio
• Net result of a number of policies and decisions
• Show the combined effect of liquidity, asset
management, and debt management on operating
results
• Basic Earning Power
•Relates EBIT to Total Assets
•Useful for comparing firms with different tax
situations and different degrees of financial
leverage
25. • Net Profit Margin on Sales
•Relates net income available to common
stockholders to sales
• Return on Assets (ROA)
•Relates net income available to common
stockholders to total assets
• Return on Common Equity (ROE)
•Relates net income available to common
stockholders to common stockholders equity
26. Problems In Financial Statement Analysis
Developing and Using Comparative Data
Distortion of Comparative Data
Notes to Financial Statements
Interpretation of Results
Differences in Accounting Treatment
Window Dressing
Effects of Inflation