Net

working capital = The difference between the current assets and current liabilities.. It roughly measures the companys potential reservoir of cash

EBIT = Earnings before interest and taxes = total revenues costs depreciation MARKET INDEXES market capitalization = number of shares outstanding x common stock price market value added, the difference between the market value of the firms shares and the amount of money that shareholders have invested in the firm market-to-book ratio = value of equity/book value of equity how much value has been added for each dollar that shareholders have invested. PROBLEMI CON MARKET INDEXES

Market value measures can be noisy measures of current performance. You cant look up the market value of privately owned companies whose shares are not traded. Nor can you observe the market value of divisions or plants that are parts of larger companies.

. PROFITABILITY MEASURES (EVA and Accounting Rates of Return ricavabili dai financial statements) Economic value added (Eva) = The profit after deducting all costs, including the cost of capital (Cost of capital = opportunity cost x total capitalization (equities+long term debt)) for its debt and equityholders. After tax interest to calculate the income that the company would have earned with all-equity financing. Net Operating Profit After Tax or NOPAT: NOPAT= after-tax interest - net income

ROC =

after-tax interest+net income after-tax interest+net income se il capitale e cambiato durante lanno total capital average capital

Return on Equity (ROE) We measure the return on equity (ROE) as the income to shareholders per dollar invested.

ROE =

net income net income se il capitale azionario e cambiato durante lanno equity average equity
after-tax interest+net income total assets

ROA =

PROBLEMI: - Non include alcuni assets brand name, software sviluppato negli anni precedenti

Book value of assets (original cost-depreciation) can be largely under/overestimated (old assets, buildings, etc. are underestimated)

MEASURES OF EFFICIENCY

flow measure el tipo Sono d e indicano una particolare area di (in)efficienza. snapshot measure sales sales Asset Turnover Ratio= total assets at start of year average total assets cost of goods sold Inventory Turnover = inventory at start of year 1 inventory at start of year Average days in inventory = 365 = Inventory Turnover daily cost of good s sold sales Receivables Turnover = receivables at start of year 1 receivables at start of year Average collection period = 365 = Receivables Turnover average daily sales potrebbe essere efficienza nel raccogliere le fatture o selezione (forse eccessiva) dei clienti CI POTREBBERO ESSERE ALTRE MISURE DI EFFICIENZA LEGATE AL PARTICOLARE BUSINESS: (vendite riferite alla superficie del negozio retail) (profitti per miglia passeggero linea aerea) (costo per tonnellata di acciaio siderurgia)

Profit Margin=

Net Income , ma non distingue tra debt ed equity (una societ con molti debiti avrebbe un Net Sales
Income pi basso Operating Profit Margin

Operating Profit Margin= Dupont Formula

After Tax Interest + Net Income Sales

After Tax Interest + Net Income After Tax Interest + Net Income Sales = = Assets Sales Assets Spesso I due effetti si compensano : Retail Alto - Basso Assets turnover Operating Profit margin ROA = Return on asset =
Hotel, gioielleria Basso Alto Si puo pensare di acquisire un fornitor per guadagnare il suo alto Asset turnover (ma si eredita anche il basso operating profit margin)

LEVERAGE: (aumenta i profitti e diminuisce le perdite, pero aumenta il rischio fallimento)

Long-term Debt Ratio = Long-term Debt- Equity Ratio =

Long term debt Long term debt + Equity Long term debt Equity

Si riferisce a book values e non include Ricerca & Sviluppo, Training, Pubblicit, ecc. (Puo essere giusto, in quanto se limpresa ha dei problemi, non sono beni facilmente vendibili, pero i valori di mercato possono essere differenti) Inoltre se i debiti a breve sono costanti nel tempo, puo essere piu corretto usare la ratio

Total Debt Ratio =

Total Liabilities Total Assets

Times-Interest-Earned Ratio extent to which interest obligations are covered by earnings=

Cash Coverage Ratio =

EBIT Interest Payment

Operating Cash Flow Interest Payments

EXTENDED DUPONT FORMULA

ROE =

Net Income Assets Sales After Tax Interest + Net Income Net Income = Equity Equity Assets Sales After Tax Interest + Net Income
Asset turnover Operating Profit Margin These 2 terms do not depend on the structure debt/equity

These 2 terms depend on the structure debt/equity. Leverage Ratio Se uno e maggiore di uno, laltro e minore di 1, per cui il prodotto puo essere maggiore o minore di 1 (linfluenza sul ROE, anche se di solito e maggiore) Debt Burden

LIQUIDITY Liquid Assets can be turned quickly into cash and can avoid bankruptcy. - Book value of liquid assets are reliable, but, - Liquid assets can vary very quickly A high liquidity is positive when asking for a bank loan, but can be a sign of inefficiency (high receivables, unused cash, large inventory) Net-Working-Capital-to-Total-Assets Ratio = Current Ratio =

Net Working Capital Assets

Current Assets (attenzione, se aumentano Current Assets and Current Liabilities della Current Liabilities
stessa quantit il Net-Working-Capital-to-Total-Assets Ratio non cambia ma il Current Ratio

cambia). Quick Ratio (Acid Test) (si escludono dal numeratore del Current Ratio linventory e altri assets meno liquidi)=

Cash Ratio (si escludono dal numeratore del Quick Ratio i receivables che pssono essere incerti o ritardati)=

cash+ marketable securities + receivables Current Liabilities

cash+ marketable securities Current Liabilities