外文翻译--企业并购财务报表分析(编辑修改稿)

外文翻译--企业并购财务报表分析(编辑修改稿)内容摘要：

o funded debt IV. Ine and expense ratios 1. The ratio of operating profit to sales 2. The ratio of operating profit to total capital 3. The ratio of sales to operating costs and expenses 4. The ratio of profit to sales 5. The ratio of profit to worth 6. The ratio of sales to financial expenses 7. The ratio of borrowed capital to capital costs 8. The ratio of ine on investments to investments 9. The ratio of nonoperating ine to operating profit 10. The ratio of operating profit to nonoperating expense 11. The ratio of profit to capital stock 12. The ratio of profit reinvested to total profit available for dividends on mon stock 13. The ratio of profit available for interest to interest expenses This classification of financial ratios is permanent not exhaustive. Other ratios may be used for purposes later indicated. Furthermore, some of the ratios reflect the efficiency with which a business has used its capital while others reflect efficiency in financing capital needs. The ratios of sales to receivables, inventory, fixed and intangible capital。 the ratios of operating profit to total capital and to sales。 and the ratios of sales to operating costs and expenses reflect efficiency in the use of capital.39。 Most of the other ratios reflect financial efficiency. Are the statements adequate in general?Before attempting parative analysis of given financial statements we wish to be sure that the statements are reasonably adequate for the purpose. They should, of course, be as plete as possible. They should also be of recent date. If not, their use must be limited to the period which they cover. Conclusions concerning 1923 conditions cannot safely be based upon 1921 statements. Does the parative balance sheet reflect a seasonable situation? If so, it is important to know financial conditions at both the high and low points of the season. We must avoid unduly favorable judgment of the business at the low point when assets are very liquid and debt is low, and unduly unfavorable judgment at the high point when assets are less liquid and debt likely to be relatively high. Does the balance sheet for any date reflect the estimated financial condition after the sale of a proposed new issue of securities? If so, in order to ascertain the actual financial condition at that date it is necessary to subtract the amount of the security issue from worth, if the. issue is of stock, or from liabilities, if bonds are to be sold. A like amount must also be subtracted from assets or liabilities depending upon how the estimated proceeds of the issue are reflected in the statement. Are the statements audited or unaudited? It is often said that audited statements, that is, plete audits rather than statements rubber stamped by certified public accountants, are desirable when they can be obtained. This is true, but the statement analyst should be certain that the given auditing film39。 s reputation is beyond reproach. Is workingcapital situation favorable ?If the parative statements to be analyzed are reasonably adequate for the purpose, the next step is to analyze the concern39。 s workingcapital trend and position. We may begin by ascertaining the ratio of current assets to current liabilities. This ratio affordsa test of the concern39。 s probable ability to pay current obligations without impairing its working capital. It is, in part, a measure of ability to borrow additional working capital or to renew shortterm loans without difficulty. The larger the excess of current assets over current liabilities the smaller the risk of loss to shortterm creditors and the better the credit of the business, other things being equal. A ratio of two dollars of current assets to one dollar of current liabilities is the ruleofthumb ratio generally considered satisfactory, assuming all current assets are conservatively valued and all current liabilities revealed. The ruleofthumb current ratio is not a satisfactory test of workingcapital position and trend. A current ratio of less than two dollars for one dollar may be adequate, or a current ratio of more than two dollars for one dollar may be inadequate. It depends, for one thing, upon the liquidity of the current assets. The liquidity of current assets varies with cash larger the proportion of current assets in the form of cash the more liquid are the current assets as a whole. Generally speaking, cash should equal at least 20 per cent of total current liabilities (divide cash by total current liabilities). Bankers typically require a concern to maintain bank balances equal to 20 per cent of credit lines whether used or un。