...Company Profile [pic] Overview: Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector. More than seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business. L&T has an international presence, with a global spread of offices. A commitment to community welfare and environmental protection are an integral part of the corporate vision. Subsidiary Companies: L&T group has a number of subsidiaries & associates carrying out its business all over the world As per march 31, 2011 L&T group had 118subsidaries,18 associates and 12 joint venture companies. These companies are functioning in areas like IT services Financial services Engineering & construction Services Power equipment manufacturing Power Development projects Infrastructure Electrical and Electronics Machinery & Industrial products Investment in Overseas S&A Companies. Multi step income analysis | |Particulars |2011 |2010 |diff |% change | | | | | | | | ...
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...| | | | | | | | | | | | | | TERM PAPER ON Financial analysis of L&T Info-tech [pic] SUBMITTED TO: SUBMITTED BY: Ms. Shelly Mam Rajwinder nijjar Reg no. 11002347 Roll no. B39 ACKNOWLEDGEMENT I am thankful to Ms. Shelly mam who provided me with the opportunity and guided me in successful completion of my term paper. Under her valuable guidance, constant interest and encouragement, who have devoted their ever-precious time from their busy schedule and helped me in completing the term paper. Special, continual assistance while completing the term paper was provided by the friends. I wish to acknowledge my special thanks to them for their help and cooperation in order to complete this project. I am also thankful to those who have helped me intellectually in preparation of this term paper directly or indirectly. I am deeply indebted to the various sources of information from relevant sites from internet and books. TABLE OF CONTENTS |SR. NO. |PARTICULARS |PAGE NO. | | 1. |Introduction to company L&T Info-tech |4 | |2. |Balance sheet of the company |4-5 ...
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...Formulae Final Examination Financial Accounting and Financial Statement Analysis l Equity Valuation and Analysis l Corporate Finance l Economics Table of Contents 1. Financial Accounting and Financial Statement Analysis 1.1 Generally Accepted Accounting Principles: Assets, Liabilities and 1 Shareholders’ Equities ......................................................................................... 1 1.1.1 1.2.1 1.3.1 1.3.2 1.3.3 Assets: Recognition, Valuation and Classification....................................... 1 Earning per Share ......................................................................................... 1 Profitability Analysis ..................................................................................... 2 Risk Analysis ................................................................................................ 5 Break-Even Analysis .................................................................................... 6 1.2 Financial Reporting and Financial Statement Analysis ...................................... 1 1.3 Analytical tools for Assessing Profitability and Risk......................................... 2 2. Equity Valuation and Analysis 2.1.1 2.1.2 2.1.3 7 2.1 Valuation Model of Common Stock .................................................................... 7 Dividend Discount Model............................................................................. 7 Free Cash Flow Model...
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...North-Holland FINANCIAL STATEMENT ANALYSIS AND THE PREDICTION OF STOCK RETURNS* Jane A. O U Santa Clara university, Santa Clara, CA 95053, USA Stephen H. P E N M A N Universi(v of California, Berkeley, CA 94720, USA Received January 1988, final version received April 1989 This paper performs a financial statement analysis that combines a large set of financial statement items into one summary measure which indicates the direction of one-year-ahead earnings changes. Positions are taken in stocks on the basis of this measure during the period 1973-1983, which involve cancelling long and short positions with zero net investment. The two-year holding-period return to the long and short positions is in the order of 12.5%. After adjustment for 'size effects' the return is about 7.0%. These returns cannot be explained by nominated firm risk characteristics. 1. Introduction F i n a n c i a l s t a t e m e n t analysis identifies aspects of financial statements that a r e r e l e v a n t to investment decisions. O n e goal of the analysis is to assess firm value from financial statements. M u c h empirical a c c o u n t i n g research has a t t e m p t e d to discover value-relevant accounting attributes in o r d e r to enhance financial s t a t e m e n t analysis. T h e a p p r o a c h taken in this work assumes that m a r k e t price is sufficient for d e t e r m i n i n g firms' values a n d thus serves as a b e n c h m a r k against which to evaluate the i n f o r m a t i o n in...
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...CHAPTER 5—BASICS OF ANALYSIS MULTIPLE CHOICE 1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed: a. vertical Statements. b. horizontal Statements. c. funds Statements. d. common-Size Statements. e. None of the answers are correct. \. 2. In financial statement analysis, ratios are: a. the only type of analysis where industry data are available. b. absolute numbers converted to a common base. c. fractions usually expressed in percent or times. d. the only indication of the financial position of the firm. e. None of the answers are correct. 3. Denver Dynamics has net income of $2,000,000. Oakland Enterprises has net income of $2,500,000. Which of the following best compares the profitability of Denver and Oakland? a. Oakland Enterprises is 25% more profitable than Denver Dynamics. b. Oakland Enterprises is more profitable than Denver Dynamics, but the comparison can't be quantified. c. Oakland Enterprises is only more profitable if it is smaller than Denver Dynamics. d. Further information is needed for a reasonable comparison. e. Oakland Enterprises is more profitable if it is a larger firm than Denver Dynamics. 4. Which of the following can offer a type of comparison in financial statement analysis? a. Past ratios and figures b. Industry averages c. Statistics of competitors d. All of the answers are correct. e. None of the answers are correct. 5. Which of the following...
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...( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Problem P2-12 Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm’s financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek’s recent financial statements (on the facing page), evaluate and recommend appropriate action on the loan request. Ratio Definition Calculation Creek Industry Debt 0.73 0.51 Times Interest Earned 3.00 7.30 Fixed Payment Coverage + {[(Principal + Preferred Stock Dividends)] ´ [1¸ (1 – t)]} + {[($800,000 + $100,000)] ´ [1¸ (1 – 0.4)]} 1.19 1.85 Because Creek Enterprises has a much higher degree of indebtedness and much lower ability to service debt than the average firm in the industry, the loan should be rejected Problem P2-13 Common-size statement analysis a common-size income statement for Creek Enterprises’ 2005 operations follows. Using the firm’s 2006 income statement presented in Problem 2–12, develop the 2006 common-size income statement and compare it to the 2005 statement. Which areas require further analysis and investigation? Creek Enterprises Common-Size Income Statement For the Years Ended December 31, 2005 and 2006 2006 2005 Sales Revenue 100.0% 100.0% Less: Cost...
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...CHAPTER 5—BASICS OF ANALYSIS MULTIPLE CHOICE 1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed: a.|Vertical Statements| b.|Horizontal Statements| c.|Funds Statements| d.|Common-Size Statements| e.|none of the answers are correct| ANS: D 2. In financial statement analysis, ratios are: a.|the only type of analysis where industry data are available| b.|absolute numbers converted to a common base| c.|fractions usually expressed in percent or times| d.|the only indication of the financial position of the firm| e.|none of the answers are correct| ANS: C 3. Denver Dynamics has net income of $2,000,000. Oakland Enterprises has net income of $2,500,000. Which of the following best compares the profitability of Denver and Oakland? a.|Oakland Enterprises is 25% more profitable than Denver Dynamics.| b.|Oakland Enterprises is more profitable than Denver Dynamics, but the comparison can't be quantified.| c.|Oakland Enterprises is only more profitable if it is smaller than Denver Dynamics.| d.|Further information is needed for a reasonable comparison.| e.|Oakland Enterprises is more profitable if it is a larger firm than Denver Dynamics.| ANS: D 4. Which of the following can offer a type of comparison in financial statement analysis? a.|past ratios and figures| b.|industry averages| c.|statistics of competitors| d.|all of the answers are correct| e.|none of the answers are correct| ANS:...
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...FINANCIAL COMPARISON BETWEEN THE BOEING COMPANY AND LOCKHEED MARTIN Keith L. Hohl EMGT 452 Semester Project 14 December 1999 Table of Contents 1. Introduction/Study Objective 2. Boeing Financial Statement and Analysis 2.1. Background and Product Lines 2.2. Consolidated Balance and Income Statements 2.3. Divisional Financial Statements 2.4. Ratio and Trend Analysis 3. Lockheed Martin Financial Statement and Analysis 3.1. Background and Product Lines 3.2. Consolidated Balance and Income Statements 3.3. Divisional Financial Statements 3.4. Ratio and Trend Analysis 4. Financial Comparison between the Two Companies 4.1. Consolidated Comparisons 4.2. Military Aircraft and Space Divisions Comparisons 5. Summary/Conclusions 6. Bibliography 7. List of Tables 8. List of Figures List of Tables T-1: Consolidated Financial Balance Sheet-The Boeing Company T-2: Consolidated Income Statement-The Boeing Company T-3: Divisional Financial Summary-The Boeing Company T-4: Consolidated Financial Ratio Analysis-The Boeing Company T-5: Consolidated Financial Balance Sheet-Lockheed Martin T-6: Consolidated Income Statement- Lockheed Martin T-7: Divisional Financial Summary- Lockheed Martin T-8: Consolidated Financial Ratio Analysis- Lockheed Martin List of Figures F-1: Total Assets Divisional Trend Analysis-The Boeing Company F-2: Sales Divisional Trend Analysis-The Boeing Company F-3: Net Earnings...
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...Options Analysis Submitted as a Component of Required Courses for the Award of Bachelor of Engineering (Civil) Honours School of Civil Engineering University of New South Wales Author: Ariel Hersh October 2010 Supervisor: Professor David G. Carmichael i ORIGINALITY STATEMENT ‘I hereby declare that this submission is my own work and to the best of my knowledge it contains no materials previously published or written by another person, or substantial proportions of material which have been accepted for the award of any other degree or diploma at UNSW or any other educational institution, except where due acknowledgement is made in the thesis. Any contribution made to the research by others, with whom I have worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare that the intellectual content of this thesis is the product of my own work, except to the extent that assistance from others in the project's design and conception or in style, presentation and linguistic expression is acknowledged.’ Signed …………………………………………….............. Date …………………………………………….............. ii 1. ABSTRACT Real options analysis can be used by investors to determine the value of potential investments that offer an owner the right but not the obligation to exercise a strategic decision at a predetermined time and price. Tools which are popular for valuing financial options...
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...FINANCIAL MANAGEMENT FOR M.B.A (FOREIGN TRADE 5 YRS ) – SEMESTER 6 UNIT 3 – FINANCIAL RATIOS Standardized Financial Statements a. Ratio Analysis b. The Du Pont Identity c. Using Financial Statement Information Key Concepts and Skills Know: – How to standardize financial statements for comparison purposes – How to compute and interpret important financial ratios – The determinants of a firm’s profitability and growth Understand the problems and pitfalls in financial statement analysis Standardized Financial Statements – • Common-Size Balance Sheets – All accounts = percent of total assets (%TA) • Common-Size Income Statements – All line items = percent of sales or revenue (%SLS) • Standardized statements are useful for: – Comparing financial information year-to-year – Comparing companies of different sizes, particularly within the same industry Prufrock Corporation - Balance Sheets - Table 3.1 – P.S CHANDIRAMANI @ S.O.C, D.A.V.V, INDORE - 2014 Page 1 Prufrock Corporation - Common-Size Balance Sheets - Table 3.2 – Prufrock Corporation - Income Statement - Table 3.3 – Prufrock Corporation - Common-Size Income Statement - Table 3.4 – Tells us what happened to each dollar of sales P.S CHANDIRAMANI @ S.O.C, D.A.V.V, INDORE - 2014 Page 2 Ratio Analysis – • Allow for better comparison through time or between companies • Used both internally and externally • For each ratio, ask yourself: – What the ratio is trying to measure – Why that information is important...
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...Answers of Financial Management 1. State whether each of the following statements is True (T) or False(F) (i) Financial statements are an important source of information to shareholders and stakeholders. (ii) Both the BS and the IS shows the financial position of fen at the end of the year. (ii) BS of a company must be prepared in the horizontal format only. (iv) Preparation of Profit & Loss Appropriation A/c is a requirement under the Companies Act, 1956. (v) Ratio Analysis is the only technique of analysis of financial statements. (vi) Methodical presentation of financial statements helps in Nation of various ratios. (vii) In Common Size Statements, each item is expressed as a percentage of some common items (total). (viii) Trend Percentage Analysis helps in Dynamic Analysis. (ix) Liquidity Ratios help in analysing the cash position of the firm. (x) In calculation of Acid Test Ratio, Inventory is included in current assets. (xi) Working Capital Turnover Ratio may be classified as an Activity Ratio. (xii) Debt-Equity Ratio is a measure of long-term solvency of a firm. (xiii) GP Ratio and NP Ratio give the profitability of the firm from the point of view of the shareholders. (xiv) Return on Equity and Earnings per Share are one and the same thing. (xv) DU PONT Analysis looks into the elements of profits. (xvi) Ratio Analysis provides the solution to the financial problems. Answers: (i) T, (ii) F, (iii) F, (iv) F, (v) F, (vi) T, (vii) T, (viii) T, (ix) F, (x)...
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...Y Y Y F F F F F F F F F F F F Introduction to Financial Accounting Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Management Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Introduction to Financial Accounting Section L5101 L0101 L0201 L5101 T0101 T0201 T0301 T0401 T0501 T0601 T0701 T0801 T0901 T1001 T1101 T1201 T1301 T1401 T1501 T1601 T5101 T5201 T5301 T5401 L0101 L0201 L0301 L0401 L0501 L0601 L0701 L0801 L0901 L5101 L5201 T0101 Time T 5-7 W 9-11 W 2-4 W 6-8 M 2-4 M 10-12 W 4-6 M 12-2 F 2-4 F 4-6 T 10-12 T 12-2 T 2-4 T 4-6 R 10-12 R...
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...ACCOUNTING (STATEMENT ANALYSIS) 222/525 PRACTICE TEST SOLUTIONS SECTION A SECTION B Multi-Choice Questions True/False Questions | 1. |E | | |1. |T | | 2. |E | | |2. |F | | 3. |E | | |3. |T | | 4. |C | | |4. |T | | 5. |E | | |5. |T | | 6. |D | | |6. |F | | 7. |C | | |7. |F | | 8. |D | | |8. |T | | 9. |B | | |9. |T | | 10. |C | | |10. |T | | 11. |E | | |11...
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...a glance Country T has a nationalised railway system known as T Railways. | T Railways (T$ 1291 Million) | Products: | TCL | TFR | TPTS | Revenue %: | T$ 680 Million. | T$ 516 Million. | T$ 95 Million. | Offering: | services offered are between all towns and cities within Country T which are connected to the railway network and cross national borders | hauls freight right across the network within Country T and across national borders into other countries, some of which are situated within the eurozone | replaced T Railways Property and has responsibility for all other services including maintenance and upgrade of track and all of T Railways’ property. It operates 200 railway stations, rents space out within the stations for retail purposes as well as running some of its own cafes. TPTS also operates 11 maintenance depots. | TargetCustomer: | all passenger rail services within Country T and operates on average 1,800 passenger train services per day | not offer any passenger services. Goods transported in bulk service. | | The role of the Rail Regulator: * To ensure that the railway service is delivered in Country T in a safe and efficient manner. * To help the T Railways Board meet future challenges in the provision of an efficient railway service which provides high levels of satisfaction to all rail users and the improvement of safety for staff and passengers. * provides an independent review of T Railways’ activities. The T Railways Board has...
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...Equity Valuation and Analysis – Lundholm & Sloan Chapter 1 - Introduction Focus of the Book – Equity Valuation Business Activities Operating Investing Financing Equity Valuation Theory Dividend Discounting Model o The value of an equity security is equal to the present value of the future cash flows that it will generate o Where Value0 = Value of equity at time 0 Cash Dividendt = expected amount of cash dividends to be paid in period t r = discount rate (cost of capital) Chapter 1 Equity Valuation and Analysis Page 1 of 5 o Modified Model o Where all from except Stock Repurchasest = expected amount of cash to be paid in period t Equity Issuancest = expected amount of cash to be raised via equity issuances in period t o Of course the challenge is the estimated of the amount and timing of the cash flows So where do financial statements fit into all of this? o Provide a record of the past operating, investing and financing decisions and their cash flow effects o Provide a beginning point for forecasting the future Chapter 1 Equity Valuation and Analysis Page 2 of 5 Equity Analysis Process Step 1 - Understading the Past Step 2- Forecasting the Future Step 3 - Valuation • Information Collection • Understanidng the Business • Accounting Analysis • Financial Ratio Analysis • Cash Flow Analysis • Structured Forecasting • Income Statement Forecasts • Balance Sheet Forecasts • Cash Flow Forecasts • Cost of Capital • Valuation Models •...
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