MGMT*3320,
Financial Management
Class Notes:
Financial Ratios
© F.Braga, 2015

WE START THIS “DRY” PART BY SHOWING THAT IN
FACT EVEN THE MOST ADVANCED STOCK MARKETS
DO USE THESE RATIOS AS STANDARDIZED TOOLS
USED TO CONVEY FINANCIAL INFORMATION.
SO : IT MAY FEEL DRY BUT IT IS THE REAL STUFF, SO
TO SPEAK.
WE WILL LOOK (AS AN EXAMPLE) AT THE SIX SWISS
EXCHANGE (THEIR TSE) AND WHAT THEY PUBLISH
FOR THE LISTED COMPANIES.
SPIN: THIS IS INFORMATION. MANAGEMENT USED
RAW DATA, COMPILED ACCORDING TO PROPER
METHODOLOGICAL STANDARDS TO PRODUCE
STANDARDIZED INFO WHICH IS UNDERSTOOD BY ALL
BECAUSE IT IS DEVELOPED IN A STD MANNER

MGMT*3320 F15, © F. Braga 2015

146

Nestlé: compare 2015 (left) with 2011 (right)

http://www.six-swiss-exchange.com/shares/security_info_en.html?id=CH0038863350CHF1, access Sep 17 2011 http://www.six-swiss-exchange.com/shares/security_info_en.html?id=CH0038863350CHF1 access Sep 11 2015

MGMT*3320 F15, © F. Braga 2015

147

Novartis: compare 2015 (left) with 2011 (right)

http://www.six-swiss-exchange.com/shares/security_info_en.html?id=CH0012005267CHF1 access Sep 17, 2011 http://www.six-swiss-exchange.com/shares/security_info_en.html?id=CH0012005267CHF1 access Sep 11, 2015

MGMT*3320 F15, © F. Braga 2015

148

UBS: compare 2015 (left) with 2011 (right)

http://www.six-swiss-exchange.com/shares/security_info_en.html?id=CH0024899483CHF1 accessed Sep 17, 2011 http://www.six-swiss-exchange.com/shares/security_info_en.html?id=CH0244767585CHF1 accessed Sep 11 2015
Note the new ling as UBS reorganized in 2014-15 to optimize their structure

MGMT*3320 F15, © F. Braga 2015

149

OK, LET’S START RATIOS.
WE WILL LOOK AT THEM FOLLOWING THIS
GROUPING:
- GROWTH
- FINANCIAL STRENGTH
- PROFITABILITY
- MANAGERIAL EFFECTIVENESS
- PRICE RATIOS
- PER SHARE DATA
NOTE HOS THE SWISS MARKETS REPORT SOME