项目报告或读书英文.ppt

'OnProjectReport/ReadingsMarketvalue,usenumberofsharesoutstanding,donotuseaveragenumberofsharesoutstandingIdentifysourceofdataorquotesCommonsizeanalysis,showamountsandpercentagesOnlyanalyzenotesthatarerelatedtoourcurrentlectureTaketurntowritethereport,donotleavetoonepersonInfinalexams,Imayprovideyouwithrawmaterialsandasamplearticlefromourreadingsforyoutoanalyzetherawmaterialsandwriteasimilararticle.Sogetfamiliarwithallarticles.Again,understandbutdonotmemorize. FirmNamesEagleEye:ValuationAnalysisStrategyInvestorium StatementofCashFlowCashflowfromOperatingactivities:（营运活动）cashreceiptsfromcustomerscashdisbursedto:suppliersofmerchandiseemployeesforsalariesCashflowfrominvestingactivities:（投资活动）purchaseofbuildings,equipments,plantsproceeds(进帐）fromsalesoflongtermassetsCashflowfromfinancingactivities:（融资活动）borrowing/repaylongtermdebtsissuingnewshares OverviewoftheStatementofCashFlowsInAOL2000balancesheet,cashandcashequivalentincreasedfrom$936millionsto$2,490millions.How?Thestatementofcashflows…(a)explainsthereasonsforachangeincash.(b)classifiesthereasonsforthechangeasanoperating,investingorfinancingactivity.(c)reconcilesnetincomewithcashflowfromoperations. MontgomeryWardb.f.bankrupt ThedifferencebetweenearningsandcashflowsI/SExplainchangeinretainedearningsI/Sisaccrued-basedI/SrecognizepropertyrightsI/SrequireestimatesI/SisanopinionI/Sisproneto(易于）manipulationFirmscansurvivealongstring（长串）ofnegativeearningsSCFexplainchangeincashandcashequivalentN/ASCFemphasize“actualpossessment”SCFdoesnotSCFisafactSCFissotoamuchlessdegreeFirmsgobankruptwithalongstringofnegativecashflows(outflow) CashflowequationA=L+EΔA=ΔL+ΔEΔcash+Δnon-cashA=ΔL+ΔEΔcash+ΔcurrentA(otherthancash)+Δnon-currentA=ΔcurrentL+Δnon-currentL+ΔEΔcash=ΔcurrentL+Δnon-currentL+ΔE-ΔcurrentA(otherthancash)-Δnon-currentA CashflowfromoperationCashflowsrelatedtosellinggoodsandservices;thatis,theprinciplebusiness(主营业务)ofthefirmThemainsourceofpayoffstoshareholdersandcreditorsThereasonforthefirmstoexistIffirmsdonotinthelongrungeneratemorecashfromoperationthanthereturnsoffundstoshareholdersandcreditors,thefirmsgobankrupt Cashflowfromoperation-componentsCashcollectedfromcustomersCashcollectedasinterest(利息）onloanstoothersCashcollectedasdividends（股利）oninvestmentonotherfirms’stocksCashpaidtosuppliersCashpaidtoemployeesCashpaidtootherserviceproviders:landlords,marketingagency,auditors,consultants,…CashpaidtogovernmentCashpaidtocreditorsasinterestonborrowedmoney CashflowfrominvestingactivitiesCashflowsrelatedtotheacquisitionorsaleofnon-currentassets:investment,land,property,plants,equipments…Tomaintainthecurrentproductivityoftheoperation,afirmmustreplaceassetsthattheywearout(消耗）Togrowitsoperation,afirmmustacquireadditionalassetsOldassetsmaybesoldastheybecomeobsolete(过时）,orasthefirmchangeproductionInvestingactivitiesthusprovideresourcetogeneratecashflowfromoperations Cashflowfrominvestingactivities-componentsCashreceivedfromsalesofland,investment,property,plantsandequipmentCashpaidtoacquireland,investment,property,plantsandequipment CashflowfromfinancingactivitiesCashflowsrelatedtolong-termliabilitiesandowners’equityThesourceofcashtobeusedininvestingandoperatingactivitiesTwosources:shareholdersandcreditorsThispartofSCFalsoindicateshowmuchcashthefirmreturnstoitscapitalproviders,i.e.,cashdistributiontoshareholdersandcreditorsNote:short-termliabilitiesgeneratedinoperation,suchasaccountpayable,isnotrelatedtothiscategory Cashflowfromfinancingactivities-componentsCashreceivedfromissuingcorporatedebtsortakinguploansCashreceivedfromissuingcommonsharesorpreferredsharesCashpaidtorepaydebtsorloansCashpaidtorepurchasesharesCashpaidtoshareholdersasdividends Relationsamongthecashflowsfromthethreecategoriesofactivities1CFfromFin.Act.CFfromInv.ActCFFromOp.Act. FreeCashFlow=Cashflowfromoperatingactivities+CashflowfrominvestingactivitiesIfpositive,normaloperationgeneratesmorecashthatitconsumes,suchasthecaseofastablefirmIfnegative,normaloperationgeneratesinsufficientamountofcashtobeself-sustaining,suchasagrowingfirm TwomethodstopreparetheoperatingportionofSCFDirectmethodofpresentationcalculatescashflowfromoperationsbysubtractingcashdisbursementstosupplies,employees,andothersfromcashreceiptsfromcustomers.Theindirectmethodcalculatescashflowfromoperationsbyadjustingnetincomefornoncashrevenuesandexpenses.Mostfirmspresenttheircashflowsusingtheindirectmethod. SCF-DirectmethodThedirectmethodissimpleandstraight:CashcollectedfromcustomersCashcollectedasinterest(利息）onloanstoothersCashcollectedasdividends（股利）oninvestmentonotherfirms’stocksCashpaidtosuppliersCashpaidtoemployeesCashpaidtootherserviceproviders:landlords,marketingagency,auditors,consultants,…CashpaidtogovernmentCashpaidtocreditorsasinterestonborrowedmoney IndirectmethodSCFreconcilesnetincomewithcashflowfromoperationΔcash=ΔcurrentL+Δnon-currentL+ΔE-ΔcurrentA(otherthancash)-Δnon-currentAΔcash=[ΔcurrentL-ΔcurrentA(otherthancash)]+[Δnon-currentL+ΔE]–[Δnon-currentA]Op.Fin.Inv. IndirectmethodSCFreconcilesnetincomewithcashflowfromoperationNetIncomeisaccrual-based,whenwecalculatenetincome,wedonotcarewhethercashhasbeenreceivedorpaidButcurrentassetsandcurrentliabilitiesaccountsareimpactedwhenwecalculatenetincome,e.g.,wedebitaccountreceivableandcreditrevenuewhenfinishingasalesactivity IndirectmethodSCFreconcilesnetincomewithcashflowfromoperationSointheexampleabove,netincomeishigherthancashflowfromoperationbecausethistransactionincreasesnetincomebyincreasingrevenues,butdoesnotincreasecashbecausewedebitaccountreceivableandnocashiscollectedyet.Therefore,togettothebalanceofcashfromnetincome,wesubtracttheincreaseinaccountreceivableaccount.Thisprocedureconfirmstothecashequationinwhichincrease(positivechange)incurrentassetsotherthancashdecreasecashflowfromoperation. IndirectmethodSCFreconcilesnetincomewithcashflowfromoperationTheindirectmethod:Netincome+depreciationIncreaseincurrentassetsaccounts+decreaseincurrentassetsaccountsdecreaseincurrentliabilitiesaccounts+increaseincurrentliabilitiesaccounts=Cashflowfromoperation Notestofinancialstatements-oncashflows Iscashtheking?CashistheultimatepayoffstocapitalprovidersEstablishedfinancetheorytoldusthethevalueofafirmisthepresentvalueofallitsfuturedividends Iscashtheking?Earningsdonotalwaysgohand-in-handwithcashflows-Operationalreason:agrowingfirmcanhavefastgrowthinearnings,butduetotheexpansion,itisconsistentlyshortofcash;adecliningfirmmayhavedecliningearningsbutthrowoutlargeamountofcashduetolackofinvestingopportunities-Earningsmanagementreason:Afirmmaymanagethenon-cashearningstoincreaseearnings,butnottoincreasecashflow. CashflowpatternfordifferentfirmsCashflowfrom:ABCDOperation$(3)$7$15$8Investing(15)(12)(8)(2)Financing185(7)(6)NetCF0000New,growingfirmGrowinglessrapidlyMature,stablefirmDecliningfirm Iscashtheking?-Sloan[1996]AccountingReview Iscashtheking?-Sloan[1996]AccountingReview Iscashtheking?-Sloan[1996]AccountingReview Iscashtheking?-Barthelal.(2001) InvestingMottoYoucanpocketcash,butyoucannotpocketearnings!---myself'