财务分析与证券定价(英文)chapter11.pptVIP

Chapter 11 The Analysis of Profitability Links What you will learn from this chapter How return on common equity (ROCE) is broken down into its drivers How financial leverage affects shareholder profitability How operating liability leverage affects the profitability of operations The difference between Return on Net Operating Assets (RNOA) and Return on Assets (ROA) How profit margins and asset turnovers drive RNOA How borrowing costs are analyzed How profitability analysis is used to ask “what if” questions in sensitivity analysis The Focus: Accounting-Based Valuation The task is to determine premiums over book value (or equivalently, the P/B ratio) What will future ROCE be? What will be the growth in the future? Point of departure: Current ROCE and growth How will future ROCE and growth be different from current ROCE? This chapter analyzes current profitability The next chapter analyzes growth Forecasting and the Analysis of Current Profitability Establish the present: Analysis of profitability (in this chapter) Determine the current profitability (ROCE) and the factors that influence the profitability Determine transition from present to future: Projecting future profitability(in Part III) Determine factors that influence future profitability and describe how the future will be different from the present These correspond to steps 2 and 3 of fundamental analysis The reformulation of the balance sheet and income statement has put them into a form to carry out step 2 and to use them to forecast the future in step 3 Cutting to the Core: ROCE Drivers ROCE is decomposed into drivers over three levels of analysis: Effects of Leverage Analysis of Operating Profitability Analysis of Net Borrowing Costs Due to formatting restrictions, please manually replace this page with hardcopy of slide from file: Analysis of Profitability (slide chart) [windows name]analys~1.ppt [dos name] First-Level Breakdown: Analysis of Effects of Financial Leverage (F