Fundamentals of Financial Management (Concise 6th Edition)

100 Part 2 Fundamental Concepts in Financial Management 4-7 TREND ANALYSIS It is important to analyze trends in ratios as well a ...

Chapter 4 Analysis of Financial Statements 101 4-8 THE DUPONT EQUATION We have discussed many ratios, so it would be useful to s ...

102 Part 2 Fundamental Concepts in Financial Management stockholders. Therefore, the return on assets must be adjusted upward to ...

Chapter 4 Analysis of Financial Statements 103 4-9 RATIOS IN DIFFERENT INDUSTRIES Table 4-2 provides a list of the ratios for a ...

104 Part 2 Fundamental Concepts in Financial Management Tabl e 4 - 3 Allied Food Products: Summary of Financial Ratios (Millions ...

Chapter 4 Analysis of Financial Statements 105 4-11 BENCHMARKING Ratio analysis involves comparisons with industry average! gure ...

106 Part 2 Fundamental Concepts in Financial Management 4-12 USES AND LIMITATIONS OF RATIOS As noted earlier, ratio analysis is ...

Chapter 4 Analysis of Financial Statements 107 such as used machinery are not traded in the marketplace. Further, in" ation affe ...

108 Part 2 Fundamental Concepts in Financial Management 4-13 POTENTIAL MISUSES OF ROE We know that managers should strive to max ...

Chapter 4 Analysis of Financial Statements 109 S has stable cash " ows and a predictable 15% ROE. Division R has a 16% expected ...

110 Part 2 Fundamental Concepts in Financial Management increases risk because having revenues from several products stabilizes ...

Chapter 4 Analysis of Financial Statements 111 The single most important ratio over which management has control is the ROE—the ...

112 Part 2 Fundamental Concepts in Financial Management Total Current Assets Current Ratio Effect on Net Income a. Cash is acqui ...

Chapter 4 Analysis of Financial Statements 113 Total Current Assets Current Ratio Effect on Net Income h. A cash dividend is dec ...

114 Part 2 Fundamental Concepts in Financial Management TIE RATIO The H.R. Pickett Corp. has $500,000 of debt outstanding, and i ...

Chapter 4 Analysis of Financial Statements 115 BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the ...

116 Part 2 Fundamental Concepts in Financial Management Ratio Barry Industry Average Current _____ 2.0# Quick _____ 1.3# Days sa ...

Chapter 4 Analysis of Financial Statements 117 a. Calculate those ratios that you think would be useful in this analysis. b. Con ...

118 Part 2 Fundamental Concepts in Financial Management Per-Share Data 2008 2007 EPS $0.80 $4.17 Cash dividends $1.10 $0.95 Mark ...

Chapter 4 Analysis of Financial Statements 119 company’s 2007 and 2008 financial ratios, together with industry average data. Th ...