Home |


Monday, March 7, 2011

8 Steps to Fast Balance Sheet Analysis

Monday, March 7, 2011
Maybe I will give examples can be found in very simple and amateurish, but my main intended in any analyst's assessment of the possibility of making a preliminary assessment is that non-investors in its own right.

Train roll on the balance sheets of the paper is published in the past days the stock market instead of the door now, excel format, the data have been standardized. Of course, it facilitates the work of analysts on the one hand, on the other hand a lot of information to be open to everyone and to increase the added value of analysis makes it necessary to carry out a much more sophisticated.
In the past, current assets and fixed assets in the form of balance sheets published in 2 pens (1989 mid-term balance sheets), now published in 82 pens.
So what is the sophisticated analysis necessary to make it, while individual investors how to benefit from increased knowledge, for example, or how to run balance sheets can make an assessment.
Maybe I will give examples in this article can be found in very simple and amateurish, but my principal is not intended in any analyst's assessment of the possibility of making a preliminary assessment is that investors in its own right.
Will look at WHAT?
1. Horizontal analysis: Net sales growth rate. Naked figure may not mean a thing too much. Therefore, the average inflation rate of increase in net sales, or need to be adjusted according to the average currency exchange rate changes. How do we do this.
For example, whether a company's net sales increased 100 percent. Formula is as follows:
Real growth rate (RAO) = (1 + nominal increase) / (1 + average inf) -1 Example RAO = (1 +1) / (1 + 51.4%) -1 = 32.1% 51.4% 2000 average wholesale prices If you are going to make adjustment according to the dollar exchange rate (1999 avg. 416.838, 2000 ave. 623.996) Example RAO = (1 +1) / (1 + 49.7%) -1 = 33.6% 2000 average rate increase of 49.7%
After finding the firm's performance figures for the increase in real terms is important when comparing the same with other companies or real numbers to compare previous years.
2. The same analysis of operating profit, profit before tax or net profit figures can we do to.
With each other may be a result of these comparisons are as follows:
If the profit rate of increase in real terms, is greater than the increase rate of sales, a decrease in costs, income statement, or a decrease in other non-operating expenses (other f.dışı an increase in revenues) is in question. Or, for example, rate of increase in net sales, gross profit is greater than the increase rate, a decrease in gross profit margin, or there is an increase in the cost of goods sold.
3. If you need to make a horizontal analysis of the balance sheet, which will be the annual inflation rate is the rate of inflation. Because a photograph of that moment niteliğindeyken balance sheet figures, income statement niteliğindedir a period film.
Similarly, the average exchange rate balance sheet is not required to use when dialing dollars, end of period exchange rate. The most important items in the balance sheet, the horizontal analysis of the current assets, fixed assets, liabilities (especially financial liabilities) and equity.
4. Vertical analysis: income statement items, especially along the horizontal analysis is very important to help understand the outcomes of an analysis. Income statement items as net sales divided by fixed item, cost of goods sold, gross profit, operating profit, pre-tax profit and net income figures are calculated by dividing this figure.
For example, the figure is calculated by dividing gross profit to net sales and gross profit margin is known as compared to previous years and years. If you have a reason for this anomaly should be investigated.
A reduction in profit margin, or a decline in unit selling prices, or one or birkaçındaki indicate an increase in cost items. The same as gross margin, operating margin, pre-tax profit margin, net profit margin last year and the company's profitability by comparing the increase / decreases can be obtained important clues about the reasons.
5. Vertical analysis - balance sheet items: the balance sheet items of the same year, the division of each other and compare öçnceki years or periods. Also known as ratio analysis. For example, current ratio, debt / equity ratio, short-term debt / long-term debt (total debt), ratio of total debt as financial debt.
They all give different results, but a quick analysis of the most important one for the rates to use the current rate. = Current assets / current liabilities. Partly in the hands of the company's liquid assets, short-term debts to be paid to how much of your meets.
Generally accepted rates of 1.33 to 2 le change, but the real basis of comparison of the sectoral or company-owned trend over the years.
6. Debt-equity ratio-called leverage ratio indicates that the leverage of the company's activities are part of what it costs. Less debt is good company, do not live like we're the problem because of financial costs.
But we look at the profitability of equity invested in the company, the debtor companies may be more advantageous position.
What does this mean? The liability capital in the firms, only 100 pounds, 100 pounds asset continues its activities, it provides revenue through.
On the other hand, next to 100 pounds 300 pounds debt-equity firm operated by the presence of 400 pounds, if the return on assets from financial debts of more than pays the cost if the difference is reflected in a positive profit.
The result is what is owed two companies have 100 pounds of equity, the leverage effect of profitability will have more equity.
7. In addition to these, especially domestic - especially in non-sales ratio gidişatıyla please evaluated together is important. TL valuable during periods of increased ratio of domestic sales, install than the inflation rate to have more periods of increased exports to the firm will make a positive impact on the income statement.
However, low expected growth rate of the economy in 2001, as well as companies with high export ratio of less than £ affected by economic recession, even if valuable.
8. In addition, the companies described in the notes to non-cash expenses like depreciation and assessment is very important, albeit a bit complicated. Many analysts, adding them to the company's net profit and makes a comparison of them over the years.
For example, a company that has completed high a consistent investment is a very large amount of depreciation allocated for the damage it may seem, however, is increasing the ability to create cash.
All of these assessments, as well as hundreds of people and methods used in ratio.However, investors will install the internet on the balance sheet and income statements of simple methods calculate these ratios and may have an idea about the status of the companies as soon as possible.
But, of course, the smartest way to get support for this work as a professional in the research departments, and making investment decisions to consult them.

0 yorum:

Post a Comment