Study Session 8
Cross-Reference to CFA Institute Assigned Reading #28
-
Financial Analysis Techniques
Sample Balance Sheet
Year
Current
year
Previous
year
$ 1 05
205
310
$95
1 95
290
620
580
1 ,800
360
1,440
$ 1 ,700
340
1 ,360
$2,060
$ 1 ,940
$110
160
55
325
$90
140
45
$275
610
1 05
$690
95
300
400
320
1,020
300
400
1 80
880
$2,060
$ 1 ,940
Assets
Cash and marketable securities
Receivables
Inventories
Total current assets
Gross property, plant, and equipment
Accumulated depreciation
Net property, plant, and equipment
Total assets
Liabilities
Payables
Short-term debt
Current portion of long-term debt
Current liabilities
Long-term debt
Deferred taxes
Common stock
Additional paid in capital
Retained earnings
Common shareholders equity
Total liabilities and equity
SamEle Income Statement
Year
Current
y_ear
Sales
$4,000
Cost of goods sold
3,000
Gross profit
Operating expenses
1 ,000
650
Operating profit
Interest expense
350
50
Earnings before taxes
Taxes
300
1 00
Net income
200
Common dividends
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60
©2012 Kaplan, Inc.
Study Session 8
Cross-Reference to CFA Institute Assigned Reading #28
-
Financial Analysis Techniques
Financial Ratio Template
Current Year
Last Year
Industry
Current ratio
2.1
1 .5
Quick ratio
1.1
0.9
Days of sales outstanding
1 8 .9
18.0
Inventory turnover
1 0.7
12.0
Total asset turnover
2.3
2.4
Working capital turnover
14.5
1 1 .8
Gross profit margin
27.4%
29.3 %
Net profit margin
5.8%
6.5 %
Return on total capital
21.1%
22.4%
Return on common equity
24. 1 %
1 9.8 %
Debt-to-equity
99.4%
35.7%
Interest coverage
5.9
9.2
©20 1 2 Kaplan, Inc.
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