...(cont’d) Operation starts Banking system Main objective June 2, 1999 Commercial bank Providing with caring services by being innovative in the development of new banking products and services Head office 61, Dilkusha Commercial Area Dhaka-1000 F&B JU Principles of Management (109) Financial Accounting (FNB106) Batch #02 Objectives of the presentation • Learning financial statement analysis • Analyzing the financial statement of Mercantile Bank Limited • Finding out its financial condition and whether it is making profit or not F&B JU Principles of Management (109) Financial Accounting (FNB106) Batch #02 Techniques of financial statement analysis There are several techniques of financial statement analysis. They are1. Ratio analysis 2. Funds flow analysis 3. Common size analysis 4. Break even analysis 5. Trend analysis F&B JU Principles of Management (109) Financial Accounting (FNB106) Batch #02 Techniques of financial statement analysis (cont’d) Here we will use ratio and trend analysis system: Ratio analysis: Ratio is a statistical yardstick that measures the relationship between two accounting figures based on comparison in numerical terms. It points out whether the financial condition of a firm is very strong, good, partly good, questionable or poor. Trend analysis: Any analysis of firm’s financial ratios over time is called the trend analysis. It is used to determine the improvement and deterioration of the business over time...
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...Getting Started Tutorial Welcome This tutorial will introduce you to the main functions of your AccountRight software. You can use this tutorial with the current versions of MYOB AccountRight Plus, MYOB AccountRight Premier and MYOB AccountRight Enterprise; these products will be referred to as AccountRight software throughout this tutorial. Viewing this tutorial You can view this tutorial on screen or you can print it. If you are viewing it on screen and the screenshots are too small for you to see the details, you can zoom in using the zoom function ( ) on the Acrobat toolbar. Working through this tutorial The first part of this tutorial provides an overview of how to set up your AccountRight software and how to navigate through it. The rest of the tutorial is made up of modules that teach you how to do specific tasks. You can do the modules in order or you can skip to the module you want. However, complete the exercises within each module in the order in which they are presented, as they may build on previous exercises. You can stop the tutorial at any time and return to it later. This tutorial has the following modules: ’Banking’ on page 9 ’Purchases’ on page 16 ’Sales’ on page 21 ’Jobs’ on page 30 ’Forms’ on page 34 ’Reports’ on page 40 ’Payroll’ on page 43. 1 Your AccountRight company file The information you enter in your AccountRight software is stored in a file called a company file. Your company file contains all the transactions, records...
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...ISIS PAPYRUS CASE STUDIES The key to success in today’s very competitive finance sector is the capability to offer new products and services to customers fast and efficiently. Related business documents, like bank statements or loan agreements, play a strategic role in the business process, as banks have moved to self-service methods such as electronic bank tellers and Internet services. Customer documents become the primary communication vehicle. Competitive Customer Documents in the Finance Sector Business documents have to be of high quality, contain detailed and well structured information and a unique content for every customer. Targeted marketing information, dynamic charts produced from business data, spot or full color statements, which are often produced for priority customers only, are common requirements today. Consolidated Statements A good example of such a service strategy is Citibank’s consolidated bank statement. It contains not just the current status of one account at a time, but summarizes and details all the customer's accounts down to the scanned images of all cancelled checks. At the same time it uses the same document to inform of the bank’s new offerings and services by including marketing messages targeted conditionally on the customer’s status. And there is more • Detailed and summarized information on various different accounts; savings, credit card, loans, investments, etc. in a consolidated document • The account status...
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...Korean Language Institute 214-1 Daedong Gyeongsan, Gyeongbuk 712749, KOREA Tel: 82 53 810 7862 Fax: 82 53 810 4702 E-mail: kli@ynu.ac.kr http://kli.yu.ac.kr Application for Regular Course Personal Information Name: Family name (a s it appears on passport) First name (as it appears on passport) Middle name Date of birth: Month / Day / Year Gender: □ Male □ Female Country of citizenship: Country of birth: Mailing Address: Email: Are you already in Korea? □Yes □No Phone: If so, what type of visa do you have? Academic Information Name of home institution: Major Country Graduation Date: Course Registration Please indicate which session(s) you plan to register: □ 2013-1st □ 2013-3 rd March 11, 2013 ~ May 20, 2013 September 9, 2013 ~ November 21, 2013 □ 2013-2nd □ 2013-4 th June 3, 2013 ~ August 12, 2013 December 2, 2013 ~ February 13, 2014 Signatures I certify that the information submitted via this application is correct, that I am registering for this program, and that I am responsible for meeting all costs associated with the program. I certify that I have read the KLI terms and conditions (as well as housing conditions) included with this application I give the KLI permission to report my progress updates and transcripts to my sponsor (if applicable). Name of sponsor (if applicable) Signature of sponsor Relationship to Applicant Signature of applicant (required) Date (mm/dd/yyyy) Tuition & Fees The KLI requires...
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...Assignment On Financial Analysis & Control Submitted To: Umme Hanna Airin Ara Acting Head of Finance Department of Business Administration Stamford University Bangladesh Submitted By: Md.Nazmul Hasan ID: BBA 031 11119 BATCH: 31(P) Program: BBA Course Title: Financial Analysis & Control Course Code: FIN- 434 Stamford University Bangladesh Date of submission: 17th November, 2011 The Demand for financial Statement Information: * Introduction Financial statement is the product of a diverse set of demand and supply forces. Financial statement information is needed to facilitate decision making to facilitate the monitoring of management or to interpret contracts or agreement that includes provisions based on such information. Parties demanding financial statement information A. Shareholders, Investors and Security Analysts: Shareholders and other investors of corporation these parties range from individuals with relatively limited resources to large, well endowed institutions such as insurance companies and mutual funds. These decision made by the parties include not only which shares to day retain, or sell, but also the timing of the purchases or sales of those shares. In an investment focus, the emphasis is on choosing a portfolio of securities that is consistent with the preferences of the investor for risk, return, dividend yield, liquidity and so on. In that...
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...Financial analysis Accountancy Financial analysis (also referred to as financial statement analysis or accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. Financial analysts often assess the firm's: 1. Profitability -its ability to earn income and sustain growth in both short-term and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term; 3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations; Both 2 and 3 are based on the company's...
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...Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Financial analysis may determine if a business will: Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Make other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. Contents [hide] 1 Goals 2 Method 3 See also 4 Notes 5 External links Goals[edit] Financial analysts often assess the following elements of a firm: 1. Profitability - its ability to earn income and sustain growth in both the short- and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency - its ability to pay its obligation to creditors and other third parties in...
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...Spring 2014 T TH Financial Analysis and Management Dr. Kamal M. Haddad COURSE OBJECTIVES Fin 423 is designed to develop critical thinking at the individual level, and problem solving competencies at both the individual and group levels. Teamwork and group problem solving are stressed. The course provides a thorough overview of financial analysis, including relevant modern theory and practical applications. Topics include financial statement analysis, financial planning, principles of valuation, capital budgeting, capital structure, and issues in financial policy. The course gives students opportunities to apply financial theory to analyze real life situations in an uncertain environment with an incomplete data set. It is integrative in nature, with special attention to the integration of theory and managerial judgment in the process of making financial decisions. BSBA Goals BSBA students will graduate being Effective Communicators, Critical Thinkers, Able to Analyze Ethical Problems, Global in their perspective, and Knowledgeable about the essentials of business. This class contributes to those goals through its student learning outcomes. LEARNING OBJECTIVES * Use Financial Statements to evaluate firm performance. * Project Financial Statements (B/S, I/S, budgets, etc.). * Use Financial Statements to obtain Cash Flows for the firm and...
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...Financial reporting and its analysis has an important role in the information intermediaries (auditors, press, financial analysts) and financial intermediaries (banks, insurance companies, mutual funds) functioning. Information intermediaries and financial intermediaries use the information from the financial reports to investigate the investment opportunities and find the “good” ones (Palepu, Healy & Peek, 2013). The “lemons” problem explains the problem in identifying the “good” and “bad” ideas being offered in the market (Holod & Peek, n.d.). The “bad” ideas are valued by investors at an average level, as they know that in the market there are both types of ideas. This approach, unfortunately, leads to less attractive conditions of financing to the owners of “good” ideas; the proportion of “bad” ideas increases. The identification of “good” investments can be performed by following the four steps (Palepu, Healy & Peek, 2013): * Business strategy analysis * Accounting analysis * Financial analysis * Prospective analysis All the above analysis get the information from the financial statements, publically data available, from business application context that consists of credit analysis, debt analysis, general business analysis and other details on corporate business (Palepu, Healy & Peek, 2013). The business strategy analysis is a tool to form the performance expectations using industry data and competitive strategy data. Accounting analysis assess accounting policies...
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...2 Graduate Thesis By Teia R. Merring Copenhagen Business School Strategic and financial analysis and valuation of B&O 0 1 Executive Summary................................................................................2 Introduction............................................................................................6 1.1Motivation.................................................................................................................. 6 1.2Problem Specification................................................................................................ 8 1.3Problem Identification................................................................................................ 8 1.4Problem Handling .................................................................................................... 10 1.5Structure and Methodology...................................................................................... 12 1.5.1Introduction and Presentation........................................................................... 12 1.5.2Strategic Analysis............................................................................................. 12 1.5.3Financial Statement Analysis ........................................................................... 13 1.5.4Prognoses and Budgets..................................................................................... 14 1.5.5Valuation.......................................
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...Journal of Accounting and Economics 11 (1989) 295-329. 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...
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...Australian West Newspaper in order to expand and use their resources efficiently. Secondly, SWM accounting policies and procedures have been analyzed where they showed that the company is following the accounting standards and using their flexibility that was given by the standard in order to measure some accounts in the financial statement. This flexibility was compared to the industry where it has noted that the company is valuing these accounts in a proper way. Thirdly, a financial analysis was also undertaken. It has been understood that the company, though there was a merger, is managing their resources well that resulted to positive book and cash returns. Lastly, the forecasts of the said company, where the analyst has determined the company’s value and the full set of financial statement for 2012, were estimated and calculated intelligently. With the help of the four steps of business analysis, the group has recommended that it is safe to invest to seven west media even if merger has occurred twice in the last three financial year. I. INTRODUCTION In order for a business to stay competitive in the industry, an effective business analysis must be undertaken. This involves gathering variety of data from different sources to be able to make forecasts, trends, strategic and operating improvements, and make wise business decisions to get a better company. This will also...
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...and the analysis involved in the process. Please let me know if you have questions or need further information. Yours truly, Brian Smith Enclosure Future analytical approach It is my opinion, that when dealing with future acquisitions, financial and accounting analysis is simply not enough. Therefore, it is my recommendation that an aggregate analytical approach include not just fundamental analysis, but also; corporate culture, synergy and customer analysis. Corporate Culture Analysis Future acquisitions need to carefully examine the morale and culture of the company being sought after. An overly dependent employee base that clings to its President and CEO presents a certain risk in production loss should the CEO exit the firm. As with the acquisition of Bainbridge House, morale dropped and attrition skyrocketed after Mr. Bainbridge’s passing. A high attrition rate and low morale has been shown to negatively affect production and overall efficiency. Therefore, a careful analysis needs to identify the independence and competitiveness of company employees. Synergy Analysis It is not enough to purchase a company based on fundamentals alone. If the company cultures of your firm and the firm being acquired are incompatible, valuable time will be lost looking for personnel replacements. Incompatibilities arise when the two companies have completely different goals and visions. As such, I recommend analyzing the takeover target’s mission statement, managerial...
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... : Monday 2:30 pm to 6:30 pm Role and Purpose This subject aims to introduce an analytical framework for carrying out business analysis and valuation by using financial statements for valuing different kind of businesses. It contributes to the achievement of the BBA Programme Outcomes by enabling students to identify and resolve ethical issues contained in the financial statements (Outcome 4), apply basic accounting and financial theories to analyze financial reports and to identify potential problems and risks (Outcome 7). By the end of this subject, students will become a professional user of financial statements to advance further into the field of business valuation as investment analysis. It requires students to present and communicate effectively in English for general business communication (Outcome 1). Learning Outcomes Upon completion of the subject, students will be able to: a. Develop the ability to critically assess a firm’s financial condition through analyzing financial statements; b. Apply analytical tools to make forecasts and value firms and projects using different valuation techniques; in certain business context such as credit analysis and equity valuation. c. Evaluate and compare corporate valuation decision in specific contexts such as securities analysis, credit assessment...
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...Introduction: Financial Statement Analysis is used by interested parties such as inventors, creditors, and management to evaluate the past, current and projected condition and performance of the firm. Its analysis helps user make better desiccations. Ration analysis is the most common form of financial analysis. It provides relative measures of the firm’s conditions and performance. Horizontal analysis and Vertical analysis are also popular forms. Horizontal analysis is used to evaluate the trend in the accounts over the years, while vertical analysis, also called a common size Financial Statement discloses the internal structure of the firm. It indicates the existing relationship between sales and each income statement account. It shows the mix of assets debt that produces income and the mix of the sources of capital, where by current or long-term debt of by equity funding. Financial Statement Analysis prepared for the internal auditors, Many different financial measures are used to analyze financial statements and rank the performance of competing investment opportunities, including growth in sales, return to stockholders, profit margin, and return on equity. These are just four possible measures considered and evaluated by investors and creditors. Financial statements presented in various formats to help facilitate analysis. A classified set of financial statements groups items with similar characteristics together. Groupings include categories such as current assets; property...
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