财务报表分析chapter08

10/19/2013 1 8-1 8 CHAPTER Return on Invested Capital and Profitability Analysis 8-2 Return on Invested Capital Joint analysis is where one measure is assessed relative to another Return on invested capital (ROIC) or Return on Investment (ROI) is an important joint analysis Importance of Joint Analysis 8-3 Return on Invested Capital ROI Relation Return on invested capital (ROIC) or Return on investment (ROI) relates income to a companys level and source of financing ROI allows comparisons with alternative investment opportunities -Riskier investments expected to yield a higher ROI ROI impacts a companys ability to succeed, attract financing, repay creditors,and reward owners 10/19/2013 2 8-4 Return on Invested Capital Application of ROI (2) measuring profitability (3) Measure for planning and control (1) measuring managerial effectiveness (2) measuring Profitability (3) measure for planning and control ROI is applicable to: 8-5 Return on Invested Capital Measuring Profitability ROI is an indicator of company profitability ROI relates key summary measures: profits with financing ROI conveys return on invested capital from different financing perspectives 8-6 Return on Invested Capital Measuring Managerial Effectiveness Management is responsible for all company activities ROI is a measure of managerial effectiveness in business activities ROI depends on the skill, resourcefulness, ingenuity, and motivation of management 10/19/2013 3 8-7 Return on Invested Capital Measuring for Planning and Control ROI assists managers with: Planning Budgeting Coordinating activities Evaluating opportunities Control 8-8 Components of ROI Return on invested capital is defined as: Income Invested Capital 收益收益 投入资本投入资本 8-9 Components of ROI Invested Capital Defined No universal measure of invested capital Different measures of invested capital reflect users different perspectives 10/19/2013 4 8-10 Components of ROI Alternative Measures of Invested Capital Common Measures: Net Operating Assets 净经营资产净经营资产 Stockholders Equity 普通股权益资本普通股权益资本 8-11 Components of ROI Perspective is that of the company as a whole Called return on return on net operating net operating assets (Rassets (RNNOA)OA) RNOA: measures operating efficiency/ performance reflects return on net operating assets (excluding financial assets/liabilities) Net Operating Assets 8-12 Components of ROI Common Equity Capital Perspective is that of common equity holders Excludes all debt financing and preferred equity net income less preferred dividends average common equity Return on common equity (ROCE) or ROE is defined as: 10/19/2013 5 8-13 Components of ROI Computing Invested Capital Usually computed using averageaverage capital available for the period Typically add beginning and ending invested capital amounts and divide by 2 More accurate computation is to average interim amounts quarterly or monthly 8-14 Components of ROI Adjustments to Invested Capital and Income Numbers Many accounting numbers require analytical adjustmentsee prior chapters Some numbers not reported in financial statements need to be included Such adjustments are necessary for effective analysis of return on invested capital 8-15 Components of ROI Return on Net Operating Assets - RNOA NOPAT (Beginning NOA + Ending NOA) / 2 NOPAT = Operating income x (1- tax rate) NOA = net operating assets 10/19/2013 6 8-16 Components of ROI BALANCE SHEET Operating assets . OA Less operating liabilities . (OL) Net operating assets. NOA Financial liabilities . FL Less financial assets . (FA) Net financial obligations. NFO Stockholders equity. SE Net financing . NFO + SE Operating and nonoperating activities - Distinction NOA = NFO + SE 8-17 Analyzing Return on Assets-ROA Disaggregating RNOA Return on operating assets = Operating Profit margin x Operating Asset turnover NOA Avg.Sales SalesNOPAT NOA Avg.NOPATOperating Profit margin: measures operating profitability relative to sales Operating Asset turnover (utilization): measures effectiveness in generating sales from operating assets 8-18 资产收益率（ROA）分析 10/19/2013 7 8-19 Effect of Operating Leverage on RNOA OA = operating assets OLLEV = operating liabilities leverage ratio (operating liabilities / NOA) OLLEV should be a positive number so increasing it increases RNOA 8-20 Profit Margin and Asset Turnover Profit margin and asset turnover are interdependent Profit margin is a function of sales and operating expenses (selling price x units sold) Turnover is also a function of sales (sales/assets) $5,000,000 $10,000,000 $10,000,000 $500,000$500,000$100,000 $5,000,000$5,000,000$1,000,000 10%5%1% 1210 10%10%10%NOPATSalesAnalysis of Return on Net Operating AssetsReturn on