stock

jor
price

neg price
 •

financial report must be prepared quarterly

investor relations for
{ financial
annual report
• "

name of cpn +

report
•
in annual report
-

development strategy : the use of

money
within the
year

separate financial statement : for the separate subsidiary

•
consolidated FS : combine all the FS
↳ recommended to use

defined by VAS

héo xuoirgduoiipho.in note I

0
 •

comparison time trend comparison

[peer group comparison :
compare w/ competitors at the
same time

I. Short term ratio

-

solvency
1. Current ratio =

CALL
↳ for -
each unit in CL is covered by $1.1 in CA

↳ the higher the safer

↳ if CR via competitor higher : doesn't mean they perform better
↳ the optimal point :
industry average

II. Leverage ratio

•
Total debt =
Th : how many % of L is financed by A
TA
Debt TL how many % financed by E
◦ -

Equity =
: of L is
TE

↳ the more debt the ,

more risk in longterm :
bankrupt ,
.
. .

how well the firm

III. Turnover ratio manage inventory
:

1
Inventory
•
turnover 5
inventory is sold and refilled 5 times
= in
year

Days sales in inventory ( 360

days ) = 72 in
average , inventory is
sold and refilled every 72
days
+
Depend on the industry ,
the IR is different

II. Profitability ratio

ROA
I^n÷
•
=

• ROE =
Income
F-
Profit Profit
◦

Margin =

Revenue
-

Pay attention to the size of cpn ,

if different change
using the scale
ex : A B
size 10bUSD 1bUSD
Income 1bUSD 1bUSD
ROA to% too %

I. Market ratio
PE Price 2 it takes to
2 recover your initial
=

years
•
=

Earning , investment get profit after 2

years (or 3 ?)
the lower the more attractive the firm is

VI. DuPont Analysis

,-
Return Net income ↑
•
on
Equity =
✗
CRO E) ↑ A
- -

ROA ↑ EM ↑ artificial ( debt )

Good
:
or source

not good
equity multiplier
↳
organic source

for the cpn

Net income Sales A

✗ ✗

sales A F-