TAILIEUCHUNG - Lecture Financial reporting for managers: A value-creation perspective - Chapter 4

Chapter 4 - Using financial statements to analyze value creation. The following will be discussed in this chapter: Determinants of value creation: analyzing return of equity, return on assets (roa), measures of effective sales and expense management, measures of effective assets management, asset turnover ratios, solvency ratios, measures of effective capital structure management,. | Chapter 4 Using Financial Statements to Analyze Value Creation Value Creation Management’s goal is to generate a return on the owners’ investment that exceeds the cost of equity. Return on equity (ROE) is used to make the comparison between an enterprise’s return on investment and the cost of that investment. Return on Net Income Equity Average Shareholders’ Equity This ratio measures the effectiveness at managing capital provided by the shareholders. Return on Equity Return on Net Income + Interest Expense (1-tax rate) Assets Average Total Assets This ratio measures the effectiveness at managing capital provided by all investors (stockholders and creditors). Return on Assets Return on Sales Return on Net Income + Interest Expense (1-tax rate) Sales Net Sales This ratio provides an indication of a company’s ability to generate and market profitable products and control its costs; also called the Profit Margin. Asset Turnover Ratios Asset turnover ratios are .

• Ngân hàng - Tín dụng
• Financial reporting
• Financial reporting for managers
• Financial statements
• Analyze value creation
• Effective assets management
• Expense management
• Framework of financial reporting
• Lecture Framework of financial reporting
• Regulatory system
• Reporting financial performance
• Reporting financial performance
• Financial accounting
• International financial reporting standards
• Financial reporting standards
• Merchandising operations
• Internal control
• Stockholders’ equity
• Financial statement analysis
• Financial information
• Economics of accounting information
• Computer associates international
• Financial reporting for leases
• Lease contracts
• Lessee accounting
• International financial reporting
• Conceptual framework
• Financial position
• Interpreting financial statements
• Consolidated financial statements
• Financial statements comprises
• Corporate financial reporting
• Group financial statements
• Sustainability reporting
• Reporting through XBRL
• Government accounting in india
• Regulatory framework
• Contingent liabilities