微观经济学financialstatementanalysis(编辑修改稿)

微观经济学financialstatementanalysis(编辑修改稿)内容摘要：

ed as ultimate test of management’s operating effectiveness • Measure of the percentage of each dollar of sales that results in profit PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 17 = Profit margin on sales Profit Net sales Profitability ratios continued 6. Cash return on sales • Indicates the entity’s effectiveness at generating cash from operating activities • Measure of the percentage of each dollar of sales that results in cash from operating activities PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 18 = Cash return on sales Net cash from operating activities Net sales Profitability ratios continued 7. Gross profit margin • Higher gross profit margin would contribute to an improvement in the profit ratio • Measure of the percentage of each dollar of sales that results in gross profit PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 19 = Gross profit margin Gross profit Net sales Profitability ratios continued 8. Expense ratio • Any reduction in expense ratio has a favourable impact on profit margin • Measure of the percentage of each dollar of sales that results in gross profit PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 20 = Expense ratio Expenses (excluding tax) Net sales Profitability ratios continued 9. Asset turnover • Measures how effectively an entity uses its assets to generate sales • May vary considerably among industries PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 21 = Asset turnover Net sales . Average assets Profitability ratios continued 10. Return on assets (ROA) • Measures overall profitability with respect to investment in assets • Measures how much profit is generated for each dollar carrying amount of assets PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 22 = Return on assets Profit . Average assets Profitability ratios continued 11. Return on equity (ROE) • Measures profitability from the equity holders’ viewpoint • Formula when preference shares are on issue PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 23 = Return on ordinary shareholders’ equity Profit – Preference dividends . Average ordinary shareholders’ equity = Return on equity Profit . Average equity Profitability ratios continued 12. Earnings per share (EPS) • Measure of the profit earned on each ordinary share on issue • Refers to amount of profit applicable to ordinary shareholders, and so any preference dividends declared must be deducted from profit PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 24 = Earnings per share Profit . Weighted average ordinary shares issued Profitability ratios continued 13. Price–earnings ratio (P–E) • Oftenquoted measure of ratio of market price of each ordinary share to earnings per share • Reflects investors’ assessments of an entity’s future earnings • Indicates how many years of current EPS investors are prepared to pay to acquire the share PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 25 = Price–earnings ratio Market price per share Earnings per share Profitability ratios continued 14. Payout ratio • Measures the percentage of profits distributed in the form of cash dividends • Entities with high growth rates generally have low payout ratios because they reinvest most of their profit in the firm PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 26 = Payout ratio Cash dividends Profit Gearing ratios 15. Debt to total assets ratio (D–A) • Indicates degree of leverage • Measures percentage of。