【正文】 disposition of cash. Capital structure and longterm solvency. A pany’s ability to generate future revenues and meet longterm obligations. Return on investment. A pany’s ability to provide financial rewards sufficient to attract and retain supplies of financing. Asset utilization. Asset intensity in generating revenues to reach a sufficient level of profitability. Operation performance. A pany’s success at maximizing revenues and minimizing expenses from longrun operating activities. Comparative Financial Statement Analysis 30 0,0 0020 0,0 0010 0,0 000100 ,00 0200 ,00 0300 ,00 0400 ,00 0500 ,00 0600 ,00 0700 ,00 02022 2022N e t r e v e n u eC os t of r e v e n u eG r os s p r of i tO p e r ati n g e xp e n s e sI n te r e s t e xp e n s e sI n c om e b e f or e i n c om etax e sP r ov i s i on f or i n c om etax e sN e t i n c om eRATIO ANALYSIS RATIO ANALYSIS OF FINANCIAL STATEMENTS Factors affecting ratios Ratio Interpretation Illustrations of Ratio Analysis Activity Ratios Changes in Comparative Financial Statement Analysis 3025201510505101520C h an geN e t r e v e n u eC os t of r e v e n u eG r os s p r of i tO p e r ati n g e xp e n s e sI n te r e s t e xp e n s e sI n c om e b e f or e i n c om etaxe sP r ov i s i on f or i n c om etaxe sN e t i n c om eLiquidity Ratios Types Formula Yr 2022 Yr 2022 Interpretation Current Ratio Current asset Current liability times times ability to meet its current financial liabilities Quick Ratio Current assets – inventory Current liabilities times times ability to pay off shortterm obligations Inventory to working capital Inventory Current Assets – Current liabilities times times working capital is tied up in inventory Leverage Ratios Types Formula Yr 2022 Yr 2022 Interpretation Debttoassets Total debt Total assets 1 1 Total borrowed funds as a percentage of total assets Debttoequity Total debt Total shareholder equity times times Borrowed funds versus the funds provided by shareholders Longterm debttoequity Longterm liabilities Equity capital times 8 times Leverage used by the firm Timeinterestearned Profit before interest + taxes Total interest change times times ability to meet all interest payments Activity Ratios Types Formula Yr 2022 Yr 2022 Interpretation Inventory turnover Sales__ Inventory of finished goods times times The effectiveness of the firm in employing inventory Fixed assets turnover Sales Fixed Assets times times The effectiveness of the firm in utilizing plant and equipment Total asset turnover Sales Total assets times times The effectiveness of the firm in utilizing total assets Account Receivable turnover Annual credit sales Account receivable times times How many times the receivables have been collected during the accounting period Average collection period Account receivable Average daily sales days days The average of time the firm waits to collect payments after sales Shareholders’ Return Ratio Types Formula Yr 2022 Yr 2022 Interpretation Dividend yield on mon Stock Annual dividend per share Current market price per share US$3,641, US$4,246, A measure of return to mon stockholders in the form of dividends Cash flow per share After tax profits + dep. of mon shares outstanding US$91,091 Nil A measure of total cash per share available for use by the firm Profitability Ratios Types Formula Yr 2022 Yr 2022 Return on Investment (ROI) Net profit Total equity times times Return on Sales (ROS) Net profit Total sales times times Return on Assets (ROA) Net profit Total assets times times FUTURE PLANNING amp。 CONCLUSION FUTURE PLANNING Net profit 2022 stated US$82,. Our group plans to increase year 2022 profit by 25%. Year 2022 expected profit is US$205,. Growth in ine from year 2022 to 2022 is only %. Low in what the ShangriLa Group should be making. Combined Revenue by Trade 010203040506070803 2O p e r ati onM an agem e n tR e n talChange: Hotel Operation (10%) Hotel Management (9%) Property Rentals (3%) Total (8%) CONCLUSION Opportunities GDP growth rates Major renovation programmes Group financed new projects Upgrade the technology infrastructure Principle activities The End