Chapter 6 -- Financial Statement AnalysisVan Horne and Wachowicz,
Fundamentals of Financial Management, 13th edition. © Pearson
Education Limited 2009. Created by Gregory Kuhlemeyer.
Chapter 6
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
After Studying Chapter 6, you should be able to:
Understand the purpose of basic financial statements and their
contents.
Understand what is meant by “convergence” in accounting
standards.
Explain why financial statement analysis is important to the firm
and to outside suppliers of capital.
Define, calculate, and categorize (according to liquidity,
financial leverage, coverage, activity, and profitability) the
major financial ratios and understand what they can tell us about
the firm.
Define, calculate, and discuss a firm’s operating cycle and cash
cycle.
Use ratios to analyze a firm's health and then recommend reasonable
alternative courses of action to improve the health of the
firm.
Analyze a firm’s return on investment (i.e., “earning power”) and
return on equity using a DuPont approach.
Understand the limitations of financial ratio analysis.
Use trend analysis, common-size analysis, and index analysis to
gain additional insights into a firm's performance.
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Financial Statements
Balance Sheet Ratios
Trend Analysis
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Trade Creditors – Focus on the liquidity of the firm.
Bondholders – Focus on the long-term cash flow of the firm.
Shareholders – Focus on the profitability and long-term health of
the firm.
Examples of External Uses of Statement Analysis
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Plan – Focus on assessing the current financial position and
evaluating potential firm opportunities.
Control – Focus on return on investment for various assets and
asset efficiency.
Understand – Focus on understanding how suppliers of funds analyze
the firm.
Examples of Internal Uses of Statement Analysis
6.*
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edition. © Pearson Education Limited 2009. Created by Gregory
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Convergence of Accounting Standards: Aims to narrow or remove
differences so that investors can better understand financial
statements prepared under different accounting frameworks
IASB – International Accounting Standards Board has the
responsibility of IFRS
IFRS – International Financial Reporting Standards (EU countries
adopted)
US GAAP – US Generally Accepted Accounting Principles determined by
FASB
FASB – Financial Accounting Standards Board determines accounting
standards for financial statements
Global Accounting Standards
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Income Statement
A summary of a firm’s revenues and expenses over a specified
period, ending with net income or loss for the period.
Balance Sheet
A summary of a firm’s financial position on a given date that shows
total assets = total liabilities + owners’ equity.
Primary Types of Financial Statements
6.*
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a. How the firm stands on a specific date.
b. What BW owned.
d. Future expense items already paid.
e. Cash/likely convertible to cash within 1 year.
f. Original amount paid.
g. Acc. deductions for wear and tear.
Cash $ 90 Acct. Rec.c 394 Inventories 696 Prepaid Exp d 5 Accum Tax
Prepay 10 Current Assetse $1,195 Fixed Assets (@Cost)f 1030 Less:
Acc. Depr. g (329) Net Fix. Assets $ 701 Investment, LT 50 Other
Assets, LT 223 Total Assets b $2,169
Basket Wonders Balance Sheet (thousands) Dec. 31, 2007a
Basket Wonders’ Balance Sheet (Asset Side)
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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a. Note, Assets = Liabilities + Equity.
b. What BW owed and ownership position.
c. Owed to suppliers for goods and services.
d. Unpaid wages, salaries, etc.
e. Debts payable < 1 year.
f. Debts payable > 1 year.
g. Original investment.
h. Earnings reinvested.
Notes Payable $ 290 Acct. Payablec 94 Accrued Taxes d 16 Other
Accrued Liab. d 100 Current Liab. e $ 500 Long-Term Debt f 530
Shareholders’ Equity Com. Stock ($1 par) g 200 Add Pd in Capital g
729 Retained Earnings h 210 Total Equity $1,139
Total Liab/Equitya,b $2,169
Basket Wonders’ Balance Sheet (Liability Side)
6.*
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a. Measures profitability over a time period.
b. Received, or receivable, from customers.
c. Sales comm., adv., officers’ salaries, etc.
d. Operating income.
f. Taxable income.
g. Amount earned for shareholders.
Net Sales $ 2,211 Cost of Goods Sold b 1,599 Gross Profit $ 612
SG&A Expenses c 402 EBITd $ 210 Interest Expensee 59 EBT f $
151 Income Taxes 60 EATg $ 91 Cash Dividends 38 Increase in RE $
53
Basket Wonders Statement of Earnings (in thousands) for Year Ending
December 31, 2007a
Basket Wonders’ Income Statement
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Analytical Tools Used
needs of the firm.
Is there a seasonal component?
Framework for Financial Analysis
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Health of a Firm
needs of the firm.
condition and profitability
of the firm.
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Examples:
needs of the firm.
condition and profitability
of the firm.
risk of the firm.
Business risk relates to the risk inherent in the operations of the
firm.
Framework for Financial Analysis
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
A Financial Manager must consider all three jointly when
determining the financing needs of the firm.
Determining
the
financing
needs of the firm.
condition and profitability
of the firm.
risk of the firm.
Framework for Financial Analysis
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Negotiations
with
needs of the firm.
condition and profitability
of the firm.
risk of the firm.
Framework for Financial Analysis
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Types of Comparisons
Internal Comparisons
External Comparisons
A Financial Ratio is an index that relates two accounting numbers
and is obtained by dividing one number by the other.
Use of Financial Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Examples:
Almanac of Business and Industrial Financial Ratios
This involves comparing the ratios of one firm with those of
similar firms or with industry averages.
Similarity is important as one should compare “apples to
apples.”
External Comparisons and Sources of Industry Ratios
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Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Current Ratio
Current Assets
Current Liabilities
For Basket Wonders December 31, 2007
Shows a firm’s ability to cover its current liabilities with its
current assets.
Balance Sheet Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
2.39 2.15
2.26 2.09
1.91 2.01
Liquidity Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Acid-Test (Quick) Ratio
Current Assets - Inv
For Basket Wonders December 31, 2007
Shows a firm’s ability to meet current liabilities with its most
liquid assets.
Balance Sheet Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
1.00 1.25
1.04 1.23
1.11 1.25
Liquidity Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Strong current ratio and weak acid-test ratio indicates a potential
problem in the inventories account.
Note that this industry has a relatively high level of
inventories.
Ratio BW Industry
Current 2.39 2.15
Acid-Test 1.00 1.25
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Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Current Ratio – Trend Analysis Comparison
Trend Analysis of Current Ratio
1.5
1.7
1.9
2.1
2.3
2.5
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Acid-Test Ratio – Trend Analysis Comparison
Trend Analysis of Acid-Test Ratio
0.5
0.8
1.0
1.3
1.5
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
The current ratio for the industry has been rising slowly at the
same time the acid-test ratio has been relatively stable.
This indicates that inventories are a significant problem for
BW.
The current ratio for BW has been rising at the same time the
acid-test ratio has been declining.
Summary of the Liquidity Trend Analyses
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Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Debt-to-Equity
For Basket Wonders December 31, 2007
Shows the extent to which the firm is financed by debt.
Balance Sheet Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
0.90 0.90
0.88 0.90
0.81 0.89
Financial Leverage
Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Debt-to-Total-Assets
For Basket Wonders December 31, 2007
Shows the percentage of the firm’s assets that are supported by
debt financing.
Balance Sheet Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
0.47 0.47
0.47 0.47
0.45 0.47
Financial Leverage
Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Total Capitalization
Total Debt
Total Capitalization
For Basket Wonders December 31, 2007
Shows the relative importance of long-term debt to the long-term
financing of the firm.
Balance Sheet Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
0.62 0.60
0.62 0.61
0.67 0.62
relative to the industry average.
Financial Leverage
Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Interest Coverage
Indicates a firm’s ability to cover interest charges.
Income Statement
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
3.56 5.19
4.35 5.02
10.30 4.66
relative to the industry average.
Coverage
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Coverage Ratio – Trend Analysis Comparison
Trend Analysis of Interest Coverage Ratio
3.0
5.0
7.0
9.0
11.0
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
This indicates that low earnings (EBIT) may be a potential problem
for BW.
Note, we know that debt levels are in line with the industry
averages.
The interest coverage ratio for BW has been falling since 2005. It
has been below industry averages for the past two years.
Summary of the Coverage Trend Analysis
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Receivable Turnover
For Basket Wonders December 31, 2007
Indicates quality of receivables and how successful the firm is in
its collections.
Income Statement/
Balance Sheet
Activity Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Avg Collection Period
Average number of days that receivables are outstanding.
(or RT in days)
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
65.0 65.7
71.1 66.3
83.6 69.2
period to that of the industry average.
Activity
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Payable Turnover (PT)
Annual Credit Purchases
Indicates the promptness of payment to suppliers by the firm.
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
PT in Days
Average number of days that payables are outstanding.
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
22.1 46.7
25.4 51.1
43.5 48.5
Is this good?
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Inventory Turnover
For Basket Wonders December 31, 2007
Indicates the effectiveness of the inventory management practices
of the firm.
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
2.30 3.45
2.44 3.76
2.64 3.69
Activity
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Inventory Turnover Ratio –Trend Analysis Comparison
Trend Analysis of Inventory Turnover Ratio
2.0
2.5
3.0
3.5
4.0
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Total Asset Turnover
For Basket Wonders December 31, 2007
Indicates the overall effectiveness of the firm in utilizing its
assets to generate sales.
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
1.02 1.17
1.03 1.14
1.01 1.13
Why is this ratio considered weak?
Activity
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Gross Profit Margin
Indicates the efficiency of operations and firm pricing
policies.
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
27.7% 31.1%
28.7 30.8
31.3 27.6
Profitability
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Gross Profit Margin –
Trend Analysis Comparison
25.0
27.5
30.0
32.5
35.0
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Net Profit Margin
For Basket Wonders December 31, 2007
Indicates the firm’s profitability after taking account of all
expenses and income taxes.
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
4.1% 8.2%
4.9 8.1
9.0 7.6
Profitability Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Net Profit Margin –
Trend Analysis Comparison
4
5
6
7
8
9
10
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Return on Investment
For Basket Wonders December 31, 2007
Indicates the profitability on the assets of the firm (after all
expenses and taxes).
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
4.2% 9.6%
5.0 9.1
9.1 10.8
Profitability Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Return on Investment –
Trend Analysis Comparison
4
6
8
10
12
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Return on Equity
For Basket Wonders December 31, 2007
Indicates the profitability to the shareholders of the firm (after
all expenses and taxes).
Income Statement/
Balance Sheet
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
BW Industry
8.0% 18.0%
9.4 17.2
16.6 20.4
Profitability Ratio Comparisons
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Return on Equity –
Trend Analysis Comparison
7.0
10.5
14.0
17.5
21.0
2005
2006
2007
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
ROI2007 = 0.041 × 1.02 = 0.042 or 4.2%
ROIIndustry = 0.082 × 1.17 = 0.096 or 9.6%
(Note: values are rounded)
ROI = Net profit margin ×
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
ROE2007 = 0.041 × 1.02 × 1.90 = 0.080
ROEIndustry = 0.082 × 1.17 × 1.88 = 0.180
(Note: values are rounded)
Total asset turnover X
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
The profitability ratios for BW have ALL been falling since 2005.
Each has been below the industry averages for the past three
years.
This indicates that COGS and administrative costs may both be too
high and a potential problem for BW.
Note, this result is consistent with the low interest coverage
ratio.
Summary of the Profitability Trend Analyses
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Growth Ratios
Growth Ratio
(Value of t)
Income Statement/
Balance Sheet
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Stock Ratios
= 91,000 / 200,000 =0.455
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Stock Ratios
38,000 / 200,000 = 0.19
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Stock Ratios
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Stock Ratios
= 1,139,000 / 200,000
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Stock Ratios
= Market Price / Book Value
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Stock Ratios
The Paid Price / Share = 929,000 / 200,000 = 4.645
6.*
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
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Inventories are too high.
COGS may be too high.
Selling, general, and administrative costs may be too high.
Summary of Ratio Analyses
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
An analysis of percentage financial statements where all balance
sheet items are divided by total assets and all income statement
items are divided by net sales or revenues.
Common-Size Analysis
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Basket Wonders’ Common Size Balance Sheets
Regular (thousands of $)
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Basket Wonders’ Common- Size Balance Sheets
Regular (thousands of $)
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Basket Wonders’ Common- Size Income Statements
Regular (thousands of $)
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
An analysis of percentage financial statements where all balance
sheet or income statement figures for a base year equal 100.0
(percent) and subsequent financial statement items are expressed as
percentages of their values in the base year.
Index Analyses
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Basket Wonders’
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Basket Wonders’
Van Horne and Wachowicz, Fundamentals of Financial Management, 13th
edition. © Pearson Education Limited 2009. Created by Gregory
Kuhlemeyer.
Basket Wonders’ Indexed Income Statements
Regular (thousands of $)
Other CA 10 14 15 0.82 0.68 0.69
Tot CA 763 1,140 1,195 62.39 55.77 55.09
Net FA 349 631 701 28.54 30.87 32.32
LT Inv 0 50 50 0.00 2.45 2.31
Other LT 111 223 223 9.08 10.91 10.28
Tot Assets 1,223 2,044 2,169 100.0 100.0 100.0
Regular (thousands of $) Common-Size (%)
Equity 674 1,086 1,139 55.11 53.13 52.51
Tot L+E 1,223 2,044 2,169 100.0 100.0 100.0
Regular (thousands of $) Common-Size (%)
Net Sales 1,235 2,106 2,211 100.0 100.0 100.0
COGS 849 1,501 1,599 68.7 71.3 72.3
Gross Profit 386 605 612 31.3 28.7 27.7
Adm. 180 383 402 14.6 18.2 18.2
EBIT 206 222 210 16.7 10.5 9.5
Int Exp 20 51 59 1.6 2.4 2.7
EBT 186 171 151 15.1 8.1 6.8
EAT 112 103 91 9.1 4.9 4.1
Cash Div 50 50 50 4.0 2.4 2.3
Regular (thousands of $) Indexed (%)
Other CA 10 14 15 100.0 140.0 150.0
Tot CA 763 1,140 1,195 100.0 149.4 156.6
Net FA 349 631 701 100.0 180.8 200.9
LT Inv 0 50 50 100.0 inf. inf.
Other LT 111 223 223 100.0 200.9 200.9
Tot Assets 1,223 2,044 2,169 100.0 167.1 177.4
Regular (thousands of $) Indexed (%)
Equity 674 1,086 1,139 100.0 161.1 169.0
Tot L+E 1,223 2,044 2,169 100.0 167.1 177.4