财务管理专业英语unite+4.ppt

Debt Management Ratios- Cash Flow Coverage Ratio Depreciation is added back to EBIT to estimate cash flow because depreciation is a non-cash expense subtracted from revenues to calculate EBIT on the income statement. Asset Management Ratios measure how effectively the firm is using its assets. 资产运营指标衡量企业运用资产的效率。 E.g. Accounts Receivable Turnover Ratio 、 Inventory Turnover Ratio、 Accounts Payable Turnover Ratio 、 Asset Turnover Ratio Asset Management Ratios Asset Management Ratios- Accounts Receivable Turnover Ratio When the financial statements do not separate cash and credit sales, total net sales are often used in the numerator. Technically, the numerator should only include credit sales because the accounts receivable in the denominator arise only from credit sales. Asset Management Ratios - Inventory Turnover Ratio A high ratio,relative to some benchmark基准, suggests efficient management of the firm’s inventory. A low ,declining ratio may suggest the firm has continued to build up inventory in the face of weakening demand or may be carrying and reporting outdated or obsolete inventory that could only be sold at reduced prices. Asset Management Ratios - Accounts Payable Turnover Ratio The cash conversion cycle is the length of time a company’s cash is tied up in the business. Asset Management Ratios –Asset Turnover Ratios A firm with old plant and equipment will have higher asset turnover ratio as the equipment is depreciated and reported on the balance sheet at a low book value. Profitability Ratios Profitability ratios relate profits to investment or sales to measure a firm’s performance. 盈利能力指标通过将企业的盈利与销售额或投资额相比较，来衡量企业的经营业绩。 E.g. Gross Profit Margin、 Operating Profit Margin、 Net Profit Margin、Return on Assets 、 Total Return on Assets 、Return on Total Equity、 Return on Common Equity、 DuPont Analysis of ROE Profitability Ratios- Gr