Lecture 3: Managing Financial Health and Performance Objectives .Financial analysis Purpose of Financial Plannin king Capital Manage .THE COURSE OF FINANCE 2017 SPRING SJTU
Lecture 3: Managing Financial Health and Performance •THE COURSE OF FINANCE 2017 SPRING SJTU •1 Objectives •Financial analysis •Purpose of Financial Planning •Working Capital Management
Chapter 3 Contents 3.1 Functions of 3.6 Analysis Using Financial Statements Financial Ratios 3.2 Review of Financial 3.7 The Financial Statement Planning Process 3.3 Market values v. 3.8 Constructing a Book Values Financial Planning 3.4 Accounting v. Model Economic Measures of 3.9 Growth the Need Income for External Financing 3.5 Return on 3.10 Working Capital Shareholders v.Return Mgmt. on Book Equity 3.11 Liquidity Cash Mgmt. .THE COURSE OF FINANCE 2017 SPRING SJTU
Chapter 3 Contents 3.1 Functions of Financial Statements 3.2 Review of Financial Statement 3.3 Market values v. Book Values 3.4 Accounting v. Economic Measures of Income 3.5 Return on Shareholders v. Return on Book Equity 3.6 Analysis Using Financial Ratios 3.7 The Financial Planning Process 3.8 Constructing a Financial Planning Model 3.9 Growth & the Need for External Financing 3.10 Working Capital Mgmt. 3.11 Liquidity & Cash Mgmt. •THE COURSE OF FINANCE 2017 SPRING SJTU •2
3.1 Functions of Financial Statements Financial Statements: Provide information of a firm about the current status and past performance D Provide a convenient way to set performance targets to impose restrictions of the managers of the firm Provide a convenient templates for financial planning .THE COURSE OF FINANCE 2017 SPRING SJTU
3.1 Functions of Financial Statements Financial Statements: Provide information of a firm about the current status and past performance Provide a convenient way to set performance targets & to impose restrictions of the managers of the firm Provide a convenient templates for financial planning •THE COURSE OF FINANCE 2017 SPRING SJTU •3
3.2 Review of Financial Statements Balance Sheets Income Statements Cash-Flow Statements .THE COURSE OF FINANCE 2017 SPRING SJTU
3.2 Review of Financial Statements Balance Sheets Income Statements Cash-Flow Statements •THE COURSE OF FINANCE 2017 SPRING SJTU •4
The Balance Sheet Summarizes a firms assets,liabilities,and owner's equity at a moment in time Amounts measured at historical values and historical exchange rates Prepared according to GAAP,Generally Accepted Accounting Principles D GAAP modified occasionally by the Financial Accounting Standards Board Exchange-listed companies in USA must comply with Securities and Exchange Commission (SEC)rules .THE COURSE OF FINANCE 2017 SPRING SJTU
The Balance Sheet Summarizes a firms assets, liabilities, and owner’s equity at a moment in time Amounts measured at historical values and historical exchange rates Prepared according to GAAP, Generally Accepted Accounting Principles GAAP modified occasionally by the Financial Accounting Standards Board Exchange-listed companies in USA must comply with Securities and Exchange Commission (SEC) rules •THE COURSE OF FINANCE 2017 SPRING SJTU •5