Analyzing Profitability Focus of Profitability Analysis Profitability analysis is key part of financial statement analysis All financial statements are pertinent to profitability analysis Emphasis of profitability analysis is on the income statement

Return on Invested Capital Importance of Joint Analysis Joint analysis is where one measure is assessed relative to another Return on invested capital (ROI) is an important joint analysis

Statement of Cash Flows Relevance of Cash Flows Cash Defined refers to cash and cash equivalents. Cash equivalents are short-term, highly liquid investments that are (1) readily convertible to known amounts of cash, and (2) near maturity (typically within 3 months) with limited risk of price changes due to interest rate shifts

Income Measurement Concepts Illustration Facts: Company with$100,000 in cash Buys condo for$100,000 Rents condo for $12,000 per year End of the first year: Condo valued at

Intercorporate nvestments Definitions Intercorporate investments investments by one corporation in the equity securities of another corporation Parent- corporation who controls, Macintosh PICT enerally through ownership of equity image format

Current Asset Introduction Classification Current (short- Noncurrent term)Assets (Long-Term) Assets Resources or claims to resources that are Resources or claims expected to be sold

Liabilities Definition Macintosh PICT image format is not supported A liability is probable future payment of assets or services that company is presently obligated to make as a result of past transactions or events

Financial Reporting Environment Regulators Industry Alternative Information Practices Sources Economy and Industry Information

Business Analysis Evaluate Prospects Evaluate Risks Business Decision Makers Equity investors Creditors Managers Merger and Acquisition Analysts External Auditors Directors Regulators

传统经济管理体制的形成与发展 向市场经济过渡的路径选择 向市场经济过渡的若干问题 如何看待当前俄罗斯经济的增长