财务报表分析研究外文翻译Word文件下载.doc

财务报表分析研究外文翻译Word文件下载.doc

《财务报表分析研究外文翻译Word文件下载.doc》由会员分享，可在线阅读，更多相关《财务报表分析研究外文翻译Word文件下载.doc（12页珍藏版）》请在冰点文库上搜索。

专业2010级财务管理本科1班

学号201040016

指导教师董玥玥

郑州科技学院工商管理学院

二〇一四年三月

FINANCIALSTATEMENTANALYSISOFEVERAGE

ANDHOWITINFORMSABOUTPORABLIITYAND

PRICE-TO-BOOKRATIOS

1FINANCIALSTATEMENTANALYSISOFEVERAGE

Thefollowinginimicalstatementanalysisseparatestheeffectsofenhancingliabilitiesandoperatingliabilitiesontheportabilityofshareholders’equity.Theanalysisyieldsexplicitleveragingequationsfromwhichthespecificationsfortheempiricalanalysisaredeveloped.Shareholderportability,returnoncommonequity,ismeasuredas

Returnoncommonequity（ROCE）=comprehensivenetincome÷

commonequity

（1）

Appropriateinimicalstatementanalysisdisentanglestheeffectsofleverage.Theanalysisbelow,whichelaboratesonpartsofNazismandPenman（2001）,beginsbyidentifyingcomponentsofthebalancesheetandincomestatementthatinvolveoperatingandenhancingactivities.Theportabilityduetoeachactivityisthencalculatedandtwotypesofleverageareintroducedtoexplainbothoperatingandenhancingportabilityandoverallshareholderportability.

1.1DistinguishingthePortabilityofOperationsfromthePortabilityofFinancingActivities

Commonequity=operatingassets＋financialassets－operatingliabilities－Financialliabilities

（2）

Thedistinctionherebetweenoperatingassets（liketradereceivables,inventoryandproperty,plantandequipment）andinimicalassets（thedepositsandmarketablesecuritiesthatabsorbexcesscash）ismadeinothercontexts.However,ontheliabilityside,enhancingliabilitiesarealsodistinguishedherefromoperatingliabilities.Ratherthantreatingallliabilitiesasenhancingdebt,onlyliabilitiesthatraisecashforoperations—likebankloans,short-termcommercialpaperandbonds—areclassierassuch.Otherliabilities—suchasaccountspayable,accruedexpenses,deferredrevenue,restructuringliabilitiesandpensionliabilities—arisefromoperations.Thedistinctionisnotassimpleascurrentversuslong-termliabilities;

pensionliabilities,forexample,areusuallylong-term,andshort-termborrowingisacurrentliability.

Rearrangingtermsinequation

（2）,

Commonequity=（operatingassets－operatingliabilities）－（financialliabilities－financialassets）OrCommonequity=netoperatingassets－netfinancingdebt

（3）

Thisequationregroupsassetsandliabilitiesintooperatingandenhancingactivities.Netoperatingassetsareoperatingassetslessoperatingliabilities.Soaarmmightinvestininventories,buttotheextenttowhichthesuppliersofthoseinventoriesgrantcredit,thenetinvestmentininventoriesisreduced.

Firmspaywages,buttotheextenttowhichthepaymentofwagesisdeferredinpensionliabilities,thenetinvestmentrequiredtorunthebusinessisreduced.Netenhancingdebtisenhancingdebt（includingpreferredstock）minusinimicalassets.So,aarmmayissuebondstoraisecashforoperationsbutmayalsobuybondswithexcesscashfromoperations.Itsnetindebtednessisitsnetpositioninbonds.Indeedaarmmaybeanetcreditor（withmoreinimicalassetsthaninimicalliabilities）ratherthananetdebtor.

Theincomestatementcanbereformulatedtodistinguishincomethatcomesfromoperatingandenhancingactivities:

Comprehensivenetincome=operatingincome－netfinancingexpense（4）

Operatingincomeisproducedinoperationsandnetinimicalexpenseisincurredintheenhancingofoperations.Interestincomeoninimicalassetsisnettedagainstinterestexpenseoninimicalliabilities（includingpreferreddividends）innetinimicalexpense.Ifinterestincomeisgreaterthaninterestexpense,enhancingactivitiesproducenetinimicalincomeratherthannetinimicalexpense.Bothoperatingincomeandnetinimicalexpense（orincome）isaftertax.3Equations（3）and（4）producecleanmeasuresofafter-taxoperatingportabilityandtheborrowingrate:

Returnonnetoperatingassets（RNOA）=operatingincome÷

netoperatingassets（5）

AndNetborrowingrate（NBR）=netfinancingexpense÷

netfinancingdebt（6）

RNOArecognizesthatportabilitymustbebasedonthenetassetsinvestedinoperations.Soarmscanincreasetheiroperatingportabilitybyconvincingsuppliers,inthecourseofbusiness,tograntorextendcreditterms;

creditreducestheinvestmentthatshareholderswouldotherwisehavetoputinthebusiness.Correspondingly,thenetborrowingrate,byexcludingnon-interestbearingliabilitiesfromthedenominator,givestheappropriateborrowingratefortheenhancingactivities.

NotethatRNOAdiffersfromthemorecommonreturnonassets（ROA）,usuallydennedasincomebeforeafter-taxinterestexpensetototalassets.ROAdoesnotdistinguishoperatingandenhancingactivitiesappropriately.UnlikeROA,RNOAexcludesinimicalassetsinthedenominatorandsubtractsoperatingliabilities.NissanandPenman（2001）reportamedianROAforNYSEandAMEXarmsfrom1963–1999ofonly6.8%,butamedianRNOAof10.0%—muchclosertowhatonewouldexpectasareturntobusinessoperations.

1.2FinancialLeverageanditsEffectonShareholderPortability

Fromexpressions（3）through（6）,itisstraightforwardtodemonstratethatROCEisaweightedaverageofRNOAandthenetborrowingrate,withweightsderivedfromequation（3）:

ROCE=[netoperatingassets÷

commonequity×

RNOA]－[netfinancingdebt÷

Commonequity×

netborrowingrate]（7）

Additionalalgebraleadstothefollowingleveragingequation:

ROCE=RNOA＋[FLEV×

（RNOA－netborrowingrate）]（8）

WhereFLEV,themeasureofleveragefromenhancingactivities,is

Financingleverage（FLEV）=netfinancingdebtcommonequity（9）

TheFLEVmeasureexcludesoperatingliabilitiesbutincludes（asanetagainstenhancingdebt）inimicalassets.Ifinimicalassetsaregreaterthaninimicalliabilities,FLEVisnegative.Theleveragingequation（8）worksfornegativeFLEV（inwhichcasethenetborrowingrateisthereturnonnetinimicalassets）.

Thisanalysisbreaksshareholderportability,ROCE,downintothatwhichisduetooperationsandthatwhichisduetoenhancing.FinancialleverageleverstheROCEoverRNOA,withtheleverageeffectdeterminedbytheamountofinimicalleverage（FLEV）andthespreadbetweenRNOAandtheborrowingrate.Thespreadcanbepositive（favorable）ornegative（unfavorable）.

1.3OperatingLiabilityLeverageanditsEffectonOperatingPortability

WhileenhancingdebtleversROCE,operatingliabilitieslevertheportabilityofoperations,RNOA.RNOAisoperatingincomerelativetonetoperatingassets,andnetoperatingassetsareoperatingassetsminusoperatingliabilities.So,themoreoperatingliabilitiesaarmhasrelativetooperatingassets,thehigheritsRNOA,assumingnoeffectonoperatingincomeinthenumerator.Theintensityoftheuseofoperatingliabilitiesintheinvestmentbaseisoperatingliabilityleverage:

Operatingliabilityleverage（OLLEV）=operatingliabilities÷

netoperatingassets（10）

Usingoperatingliabilitiestolevertherateofreturnfromoperationsmaynotcomeforfree,however;

theremaybeanumeratoreffectonoperatingincome.Suppliersprovidewhatnominallymaybeinterest-freecredit,butpresumablychargeforthatcreditwithhigherpricesforthegoodsandservicessupplied.Thisisthereasonwhyoperatingliabilitiesareinextricablyapartofoperationsratherthantheenhancingofoperations.Theamountthatsuppliersactuallychargeforthiscreditisdifficulttoidentify.Butthemarketborrowingrateisobservable.Theamountthatsupplierswouldimplicitlychargeinpricesforthecreditatthisborrowingratecanbeestimatedasabenchmark:

Marketinterestonoperatingliabilities=operatingliabilities×

marketborrowingrate

Wherethemarketborrowingrate,giventhatmostcreditisshortterm,canbeapproximatedbytheafter-taxshort-termborrowingrate.Thisimplicitcostisbenchmark,foritisthecostthatmakessuppliersindifferentinsupplyingcreedsuppliersarefullycompensatediftheychargeimplicitinterestatthecostborrowingtosupplythecredit.Or,alternatively,thearmbuyingthegoodsorservicesisindifferentbetweentradecreditandenhancingpurchasesattheborrowingrate.

Toanalyzetheeffectofoperatingliabilityleverageonoperatingportability,wedine:

Returnonoperatingassets（ROOA）=（operatingincome＋marketinterestonoperatingliabilities）÷

operatingassets（11）

ThenumeratorofROOAadjustsoperatingincomeforthefullimplicitcostoftradecredit.Ifsuppliersfullychargetheimplicitcostofcredit,ROOAisthereturnofoperatingassetsthatwouldbeearnedhadthearmnooperatingliabilityleverage.suppliersdonotfullychargeforthecredit,ROOAmeasuresthereturnfrooperationsthatincludesthefavorableimplicitcredittermsfromsuppliers.

Similartotheleveragingequation（8）forROCE,RNOAcanbeexpressedas:

RNOA=ROOA＋[OLLEV×

（ROOA－marketborrowingrate）]（12）

Wheretheborrowingrateistheafter-taxshort-terminterestrate.GivenROOA,theeffectofleverageonportabilityisdeterminedbythelevelofoperatingliabilityleverageandthespreadbetweenROOAandtheshort-termafter-taxinterestrate.Likeenhancingleverage,theeffectcanbefavorableorunfavorable:

Firmscanre