Guide rapide des indicateurs financiers

Définition

This is a checklist for assessing rights. The rights to returns and claims in the event of liquidation for common stock, preferred stock, and bonds are determined by both law and specific contractual terms.

Formule et périmètre

There is no universal formula. Key factors include principal or dividend requirements, whether dividends are cumulative, the existence of collateral, seniority (priority), and provisions for redemption or conversion.

Où chercher

Refer to corporate charters, bond indentures, prospectuses, and the notes to financial statements regarding capital and financial instruments.

Ce qu’il faut évaluer

Distinguish between the quality of a company’s business operations and the specific protections afforded to the securities you hold.

Pourquoi cela varie

When there are significant senior claims, the "cushion" available to junior (subordinated) holders may be reduced; it is essential to examine specific assets and contractual terms.

Limites et réserves

The term "preferred" does not guarantee interest payments or the return of principal. Furthermore, do not infer current legal standards in various jurisdictions based on historical U.S. case law.

À examiner aussi

Consider the maturity profile of debt, interest coverage, and potential dilution.

Exemple hypothétique

For example, if 100 is available for distribution upon liquidation, 70 might go toward debt repayment, 20 toward preferred stock (per its specific terms), and only the remaining 10 would be available for common shareholders. In practice, the final distribution also depends on administrative costs and statutory priority rankings.

Sources: Source notes for Chapter 2 of Security Analysis

Définition

The number of shares is the denominator of equity per share; the number of shares at the end of the period describes a point in time, and the weighted average number of shares corresponds to a period.

Formule et périmètre

The total number of shares at the end of the period is read according to the disclosure; EPS usually uses the weighted average number of ordinary shares outstanding during the period, and cannot be randomly replaced by the number of outstanding shares or the number of shares at the end of the period.

Où chercher

Notes on share capital, statement of changes in share capital, and EPS notes.

Ce qu’il faut évaluer

Examine the impact of additional issuances, buybacks, stock splits and capital structure on per-share indicators.

Pourquoi cela varie

Additional issuance may dilute earnings per share, or it may be invested in profitable business; buybacks do not automatically create value.

Limites et réserves

Repurchases of treasury shares, split shares and retrospective adjustments must be handled according to accounting disclosures. The number of shares required for market capitalization and earnings per share are different.

À examiner aussi

EPS, diluted EPS, PE.

Exemple hypothétique

Assume profit is CNY 1 million in both periods. Weighted average shares rise from 1 million to 1.25 million, so basic EPS falls from CNY 1 to CNY 0.80.

Sources: IFRS IAS 33 Earnings per Share

Définition

Instruments that may increase the number of common shares or affect the earnings of common shares if conditions are met in the future.

Formule et périmètre

Priority is given to using the disclosed diluted EPS and reconciliation table; all convertible bonds and options cannot be directly added to the basic EPS denominator.

Où chercher

Convertible debt and equity incentive terms, EPS notes.

Ce qu’il faut évaluer

Understand the difference between current earnings per share and potential equity split.

Pourquoi cela varie

The widening gap between basic and diluted EPS is a signal for further inspection and does not automatically mean that additional shares have been issued in this period.

Limites et réserves

Anti-dilutive instruments may be excluded from diluted EPS, especially in loss periods. The treasury-stock method for options and earnings adjustments for convertible bonds require separate study.

À examiner aussi

Number of shares, basic EPS, capital structure.

Exemple hypothétique

Assume disclosed basic EPS is CNY 1 and diluted EPS is CNY 0.90. The gap signals potential dilution; it does not prove the share count has already risen by 11.1%.

Sources: IFRS IAS 33 Earnings per Share

Définition

The former looks at all liabilities relative to assets, and the latter looks at debt or liabilities relative to equity; indicators with the same name may use different molecules.

Formule et périmètre

Asset-liability ratio = total liabilities ÷ total assets. D/E must indicate total liabilities ÷ equity, or interest-bearing debt ÷ equity; the two cannot be mixed.

Où chercher

Consolidated balance sheet and notes on borrowings, leases and equity.

Ce qu’il faut évaluer

Observe financing leverage, and then separate operating liabilities and financing debts.

Pourquoi cela varie

The increase may be due to an increase in borrowings, a decrease in equity due to losses, or an increase in payable and contract liabilities.

Limites et réserves

Total liabilities are not the same as interest-bearing debt. D/E is hard to interpret when equity is small or negative. A high-turnover business funded by customer advances should not be compared mechanically with a debt-heavy manufacturer.

À examiner aussi

Net debt, interest coverage, and debt maturity distribution.

Exemple hypothétique

Assume assets of 200, total liabilities of 120, equity of 80, and interest-bearing debt of 60. Liabilities/assets is 60%; total-liabilities/equity is 1.5×, while interest-bearing-debt/equity is 0.75×.

Sources: SEC Beginner’s Guide to Financial Statements · CFA Institute Financial Ratio List

Définition

Revenue is sales or service revenue recognized in accordance with the standards, not the amount received or the total amount of orders.

Formule et périmètre

Year-on-year revenue growth = (current-period revenue ÷ comparable prior-period revenue - 1) × 100%.

Où chercher

Income statement, revenue segment and recognition policy notes, operating discussion.

Ce qu’il faut évaluer

First describe the changes in scale, and then break down the volume, price, product structure and scope of mergers and acquisitions.

Pourquoi cela varie

Growth may come from demand, or it may be mergers and acquisitions, exchange rates or changes in confirmation timing; declines need to be dismantled in the same way.

Limites et réserves

The base period is 0 and cannot be calculated directly. A negative base number should not be interpreted as ordinary growth; half a year and a full year cannot be directly compared.

À examiner aussi

Sales volume, average price, gross profit, operating cash flow.

Exemple hypothétique

Assume that the income in the same period last year was 1,000 and this year it was 1,200, an increase of 20%; it does not indicate that profits or cash also increased by 20%.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

The gross profit after deducting corresponding operating costs from operating income and its proportion to income.

Formule et périmètre

Gross profit = revenue - operating costs; gross profit margin = gross profit ÷ revenue × 100%.

Où chercher

Income statement and notes on revenue and cost by product.

Ce qu’il faut évaluer

Observe the impact of product price, cost and product structure on initial profit margins.

Pourquoi cela varie

The increase may come from price increases, cost reductions, an increase in the proportion of high-margin products, or may be related to changes in cost classification.

Limites et réserves

The gross profit has not deducted all sales, management and other expenses; the actual accounting standards should be checked for the presentation position of R&D and depreciation. Zero revenue does not count as gross profit margin.

À examiner aussi

Selling price, unit cost, product mix, operating profit margin.

Exemple hypothétique

Assume that the revenue is 100, the cost is 60, the gross profit is 40, and the gross profit margin is 40%; it is not a net profit of 40.

Sources: SEC Beginner’s Guide to Financial Statements · CFA Institute Financial Ratio List

Définition

Use reported operating profit, or a clearly reconciled adjusted measure, to assess operating results.

Formule et périmètre

Operating profit margin = selected operating profit ÷ revenue × 100%. State exactly which profit measure is used.

Où chercher

Income statement, operating profit adjustment and various profit and loss notes.

Ce qu’il faut évaluer

Check whether gross profit is consumed by period expenses and other charged items.

Pourquoi cela varie

Changes may arise from expenses, impairments, exchanges, investments or fair value items, depending on the reporting system used.

Limites et réserves

“Operating profit” can differ across accounting standards. Do not treat it as EBIT or pure core-business profit without reconciliation.

À examiner aussi

Gross profit margin, expense ratio, net profit margin, EBIT.

Exemple hypothétique

Assume revenue is 100 and the selected operating profit is 15; operating margin on that basis is 15%. Changing the numerator means the resulting figures are not directly comparable.

Sources: SEC Beginner’s Guide to Financial Statements · CFA Institute Financial Ratio List

Définition

Consolidated net profit includes shares attributable to the parent company and non-controlling interests; the per share indicator for common shares also needs to match the earnings that can be enjoyed by common shares.

Formule et périmètre

Net margin = consolidated net profit ÷ consolidated revenue. If using profit attributable to the parent, label the resulting margin separately and do not compare the two as equivalent.

Où chercher

Income Statement and Notes to Minority Profit and Loss/Non-Controlling Interests.

Ce qu’il faut évaluer

Look at overall bottom line earnings and identify the impact of minority shareholders and one-time items.

Pourquoi cela varie

The increase may come from tax benefits, asset sales or investment income, rather than improvements in the main business.

Limites et réserves

Consolidated revenue includes all subsidiary revenue, while profit attributable to the parent belongs to the parent’s shareholders. Tax and non-recurring items can distort cross-company comparisons.

À examiner aussi

Operating profit, EPS, non-excluding and normal profits, and operating cash flow.

Exemple hypothétique

Assume consolidated net profit is 12, profit attributable to non-controlling interests is 2, and revenue is 100. Consolidated net margin is 12%; profit attributable to the parent is 10, a different numerator.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Normal profit is an analysis and judgment of sustainable earning ability; profit after deduction or adjustment is only the starting point for verification.

Formule et périmètre

There is no universal formula. List reported profit, adjustment items, related tax and attribution effects, and the resulting normalized earnings; justify each inclusion or exclusion.

Où chercher

Notes on non-recurring income statements, asset sales, subsidies, impairments, share-based payments, etc.

Ce qu’il faut évaluer

Distinguish between business profits and incidental profits and losses, and retain necessary regular costs.

Pourquoi cela varie

Any widening deviation between reported profits and adjusted profits must be investigated item by item and will not automatically be judged as fraud.

Limites et réserves

R&D, marketing or share-based payment cannot be added back arbitrarily; deductions are not equal to normal profits, let alone cash.

À examiner aussi

Gross profit, expense ratio, operating cash flow, EPS.

Exemple hypothétique

Assume that the reported net profit is 20, of which the after-tax attributable income from asset sales is 5, and the rest is unadjusted to obtain an analysis starting point of 15, which is not a proven sustainable profit.

Sources: Source notes for Chapter 2 of Security Analysis · SEC Beginner’s Guide to Financial Statements

Définition

Earnings per share reflect the relationship between the attributable earnings of ordinary shares and the number of shares during the period; basic and diluted earnings are treated differently.

Formule et périmètre

Basic EPS = profit for the period attributable to common stockholders of the parent company ÷ weighted average number of common shares outstanding. Diluted EPS adjusts the numerator and denominator as disclosed.

Où chercher

Income statement and EPS notes.

Ce qu’il faut évaluer

Correlate the company's profits with the equity per share it holds.

Pourquoi cela varie

EPS improvement may come from profit growth, or it may come from repurchases reducing the denominator.

Limites et réserves

Preferred stock dividends, anti-dilution treatment, and stock split traceability all need to be checked; do not directly divide the net profit attributable to the parent company by the number of outstanding shares.

À examiner aussi

Number of shares, potential dilution, PE.

Exemple hypothétique

Assume profit attributable to ordinary shareholders is CNY 1 million and weighted average shares outstanding are 2 million; basic EPS is CNY 0.50. Diluted EPS still requires the disclosed adjustments.

Sources: IFRS IAS 33 Earnings per Share

Définition

Use the ratio of sales, management, R&D and other expenses to revenue to observe the relationship between investment and scale.

Formule et périmètre

Each expense rate = corresponding current expense ÷ income; separately check capitalized R&D, and do not equate expenses with all R&D investment.

Où chercher

Income statement, notes on expenses and development expenses, and description of research and development.

Ce qu’il faut évaluer

Distinguish between necessary inputs, scale efficiency and cost pressure.

Pourquoi cela varie

The increase may be due to pre-investment, channel expansion, or a decrease in revenue; the decrease may be due to scale dilution or capitalization.

Limites et réserves

Less expenses do not mean better; R&D capitalization and outsourcing cost classification will change the expense rate; R&D cannot be added back to profits without basis.

À examiner aussi

Gross margin, operating margin, revenue growth, capital expenditures.

Exemple hypothétique

Assume that R&D expenses are 10, revenue is 100, and the expense rate is 10%; when there is also capitalized development expenditure of 3, it cannot be said that the R&D investment is only 10.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

ROE looks at the return on shareholders' book capital; ROIC tries to look at the after-tax return on capital invested in operations.

Formule et périmètre

Simplified ROE attributable to parent company = net profit attributable to parent company ÷ average equity attributable to parent company. ROIC = NOPAT ÷ average invested capital; NOPAT in this manual uses adjusted EBIT × (1 - analysis tax rate), and invested capital is adjusted according to interest-bearing debt + equity - non-operating cash, etc.

Où chercher

Statements, Capital and Cash Notes and Homemade Reconciliations.

Ce qu’il faut évaluer

Distinguish between operating returns and changes in book returns due to leverage and buybacks.

Pourquoi cela varie

An increase in ROE may simply be a reduction in equity or an increase in leverage; ROIC may also be affected by capitalization, impairment and acquisitions.

Limites et réserves

The average is usually the average of the beginning and end of the period, and more time points are used for major changes; negative equity and negative invested capital are not explained according to conventional ratios. The definition of ROIC is not uniform and cannot be compared with different algorithms.

À examiner aussi

Net profit margin, turnover, leverage, capital expenditures.

Exemple hypothétique

Assume that the net profit attributable to the parent company is 10, the average equity attributable to the parent company is 50, and the ROE is 20%; the NOPAT is 12, the average invested capital is 80, and the ROIC is 15%. The two are not interchangeable.

Sources: CFA Institute Financial Ratio List · Damodaran Corporate Finance course: ROIC

Définition

Separately identify the portion of cash and equivalents that cannot be used at any time or is not under the control of the corresponding entity.

Formule et périmètre

There is no single statutory “cash available” formula; eliminate the included limitations from the list of cash disclosures to avoid duplication of deductions.

Où chercher

Cash, restricted funds, pledged deposits, subsidiary funds and exchange notes.

Ce qu’il faut évaluer

Match the loan repayment entity, currency and fund mobilization.

Pourquoi cela varie

The increase in cash may come from borrowing or raising capital rather than making money from operations.

Limites et réserves

Certain restricted deposits are no longer included in cash equivalents; you cannot see the restricted amount and deduct it again, and you do not treat all short-term investments as cash.

À examiner aussi

Net debt, cash flow, and debt maturity distribution.

Exemple hypothétique

Assuming that cash and equivalents of 30 are disclosed, which already includes a restricted amount of 5, then 25 can be used according to this caliber; if 5 is in other listed assets, no deduction will be made.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Aging, overdue, credit impairment and concentration jointly reflect the quality of receivables, which cannot be summarized by one ratio.

Formule et périmètre

Proportion of impairment provision = provision ÷ original value of receivables in the same range; overdue ratio = overdue receivables ÷ receivables in the same range.

Où chercher

Notes on receivables, contract assets, credit risks and subsequent collections.

Ce qu’il faut évaluer

Examine the credit cost of revenue growth versus collection risk.

Pourquoi cela varie

Increases in receivables may be due to growth, relaxed credit terms or slower collections; changes in provisions may also result from changes in risk models and portfolios.

Limites et réserves

Distinguish gross and net receivables, notes receivable, and contract assets. Record the cutoff date for collections after the reporting period; a balance alone does not establish a bad debt.

À examiner aussi

DSO, operating cash flow, customer concentration.

Exemple hypothétique

Assume that the original value of receivables is 100, the reserve is 5, the reserve ratio is 5%, and the net book amount is 95; this does not mean that the actual future loss will be 5.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Distinguish between raw materials, work-in-progress, finished products and warehouse age, price reduction policy and subsequent sales.

Formule et périmètre

Proportion of price decline provision = Provision for price decline within the same range ÷ Original value of inventory; look at the original value and net value at the same time.

Où chercher

Inventory and impairment notes, production and sales instructions.

Ce qu’il faut évaluer

Distinguish between production expansion and stocking, delivery cycle and slow-selling risks.

Pourquoi cela varie

An increase in inventory may support orders, or it may be a backlog; less preparation may be of good quality, or estimates may be optimistic.

Limites et réserves

Different types of inventory cannot be directly compared, and a low net inventory does not necessarily mean an improvement in turnover.

À examiner aussi

DIO, sales volume, orders, capacity utilization.

Exemple hypothétique

Assume inventory cost is 100, the write-down allowance is 10, and net carrying amount is 90. A lower net amount caused only by a larger allowance does not prove faster sales.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Look at the original value of the asset, accumulated depreciation, net value, transfer of assets under construction and impairment, rather than just the size of the asset.

Formule et périmètre

Net fixed assets are generally the original value minus accumulated depreciation and related impairments; the details are listed in the report.

Où chercher

Notes on fixed assets, construction in progress, depreciation policies, and capital commitments.

Ce qu’il faut évaluer

Check the production expansion progress, usage efficiency and subsequent depreciation pressure.

Pourquoi cela varie

Growth may be due to expansion or acquisition; net reduction may be due to depreciation, impairment or disposals.

Limites et réserves

Depreciation is not a current cash expenditure, but asset renewal may still require cash; the assumption of life extension is not automatically falsified, and the basis needs to be checked.

À examiner aussi

CapEx, Capacity Utilization, ROIC.

Exemple hypothétique

Assume that the original value is 100, the accumulated depreciation is 40, the impairment is 5, and the net amount is 55; it is not immediately realizable at 55.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Goodwill comes from specific acquisition accounting, and other intangible assets have independent identification and different amortization and impairment rules.

Formule et périmètre

Observable goodwill ÷ total assets or goodwill ÷ equity; indicates the risk exposure ratio, not the value loss ratio.

Où chercher

Notes on allocation of acquisition consideration, goodwill, intangible assets, and impairment testing.

Ce qu’il faut évaluer

Identify acquisition premiums and future impairment sensitivities.

Pourquoi cela varie

The increase in the proportion may be due to acquisitions or due to a decrease in equity; impairments reduce profits but are usually not cash outflows in the current period.

Limites et réserves

Goodwill does not mean worthless, nor does it mean salable assets; a high ratio does not directly prove that the acquisition failed.

À examiner aussi

ROIC, equity, adjusted profit, cash flow.

Exemple hypothétique

Assume goodwill is 20, total assets are 200, and goodwill accounts for 10%; we also need to look at the cash-generating unit and assumptions.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Conduct a preliminary term structure check using current assets and current liabilities.

Formule et périmètre

Current ratio = current assets ÷ current liabilities; working capital = current assets - current liabilities.

Où chercher

Balance sheet, liquidity risk notes.

Ce qu’il faut évaluer

Preliminarily screen for short-term financial pressure, and then check asset quality and maturity time.

Pourquoi cela varie

The increase may be caused by increased cash or inventory backlog; the decrease may be caused by pressure or the efficient advance collection model.

Limites et réserves

There is no universal 2x qualifying line; the end-of-period snapshot does not reflect the lowest cash during the quarter, and negative working capital is not always a danger.

À examiner aussi

Quick ratio, cash flow, maturity distribution.

Exemple hypothétique

Assume that current assets are 150, current liabilities are 100, ratio is 1.5, and working capital is 50; there is no guarantee that the debt can be repaid based on this.

Sources: CFA Institute Financial Ratio List · SEC Beginner’s Guide to Financial Statements

Définition

Quick assets choose items that are easier to convert into cash; cash ratios use narrower cash items.

Formule et périmètre

Quick ratio in this manual = (cash equivalents + realizable short-term investments + net receivables) ÷ current liabilities; cash ratio = (cash equivalents + realizable short-term investments) ÷ current liabilities.

Où chercher

Balance Sheet, Cash/Investments/Receivables Notes.

Ce qu’il faut évaluer

Reduce reliance on inventory liquidation and identify prompt buffers.

Pourquoi cela varie

An increase may be due to the availability of financing, but may not necessarily be an improvement in operations; an increase in receivables will also push up the dynamic ratio.

Limites et réserves

Short-term investments and receivables may not be realized immediately; exclude the inapplicable and restricted parts and explain them, and do not mix them with the "current assets-inventory" version.

À examiner aussi

Current ratio, quality of receivables, restricted cash.

Exemple hypothétique

Assume cash of 20, realizable short-term investments of 10, net receivables of 30, and current liabilities of 100. The quick ratio is 0.6 and the cash ratio is 0.3.

Sources: CFA Institute Financial Ratio List

Définition

Interest-bearing debt is not the same as total debt; net debt is the analytical amount of selected financing obligations minus selected cash.

Formule et périmètre

Net debt = selected interest-bearing debt - selected available cash and equivalents; whether lease liabilities, short-term investments, securitization, etc. are included must be stated.

Où chercher

Notes on Borrowings, Bonds, Leases, Cash and Financial Risks.

Ce qu’il faut évaluer

Look at leverage in conjunction with the timing of repayment, and do not simply offset cash and total debt.

Pourquoi cela varie

An increase in net debt may increase borrowings, or may consume cash through investments and dividends; a negative number indicates that the selected cash exceeds the selected debt.

Limites et réserves

A net cash position does not remove risks from restricted cash, currency or entity mismatches, payables, or future commitments.

À examiner aussi

EBITDA, interest cover, maturity distribution.

Exemple hypothétique

Assume that borrowings are 60, included in leases are 20, available cash is 30, and net debt including leases is 50; excluding leases, it is 30. The name should be clear.

Sources: CFA Institute Financial Ratio List

Définition

Compare the selected profit caliber with the interest burden during the same period.

Formule et périmètre

The starting point of this manual is EBIT ÷ interest expense in profit and loss; capitalized interest, lease interest, and prior obligations are calculated separately, and net financial expenses are not used to pretend to be all interest.

Où chercher

Income Statement, Borrowing Costs and Lease Notes.

Ce qu’il faut évaluer

Measure interest buffers and review principal and cash sources.

Pourquoi cela varie

A decline may include a decline in profits or an increase in interest rates and borrowings; a high multiple may be a temporary boom.

Limites et réserves

Infinite safety is not reported when the denominator is zero; negative EBIT is interpreted as a loss state. It is not the ability to repay the principal, nor is it the full set of debt selection criteria in the original book.

À examiner aussi

Operating cash flow, debt maturities, net debt.

Exemple hypothétique

Assume EBIT is 30 and interest expense is 6. Interest coverage is 5×; that does not establish an ability to repay principal at maturity.

Sources: CFA Institute Financial Ratio List

Définition

Examination of deadlines, extension conditions, covenants, cross-defaults and unused credit facilities are note inspection items.

Formule et périmètre

Principal, interest, lease and other commitments are listed based on the next 12 months and subsequent periods; only the portion of credit that can be actually used is listed.

Où chercher

Liquidity risk, loan covenants, credit facilities and commitment notes.

Ce qu’il faut évaluer

Contrast maturities against available cash and conservative cash generation capabilities.

Pourquoi cela varie

The concentration of recent maturities and shrinking contract space will increase reliance on refinancing.

Limites et réserves

Non-current liabilities and short-term borrowings within one year are avoided from being recalculated; planned renewal of loans does not represent already-obtained funds, and uncommitted credit does not constitute an equal amount of cash.

À examiner aussi

Cash, net debt, interest coverage.

Exemple hypothétique

Assume available cash is 20 and principal due within the next 12 months is 35. The gap of 15 needs explanation alongside expected operating cash inflows, outflows, and other obligations.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Operational volume and unit price help explain revenue, and averages are affected by product mix.

Formule et périmètre

For a comparable product, revenue ≈ volume × net selling price. Multi-product revenue is the sum of each product’s volume × price.

Où chercher

Segment/product revenue, production and sales description, order and revenue policy.

Ce qu’il faut évaluer

Separate demand, price increases, product mix, exchange rates, and M&A effects.

Pourquoi cela varie

The increase in average price may only be due to an increase in the proportion of high-priced products, and an increase in sales may not necessarily increase gross profit.

Limites et réserves

Simple volume-based pricing may not apply to services, subscriptions, net-of-gross method and timing of acceptance.

À examiner aussi

Revenue, gross margin, unit cost.

Exemple hypothétique

Assume that 100 pieces × 10 yuan = 1,000; 150 pieces × 8 yuan = 1,200. The volume increased by 50% but the revenue only increased by 20%.

Sources: Source notes for Chapter 2 of Security Analysis

Définition

Use the scale of receivables and the scale of credit sales during the period to estimate the average number of occupied days.

Formule et périmètre

DSO = average trade receivables ÷ credit sales income for the same period × number of days in the period; undisclosed credit sales are clearly marked when approximated by operating income.

Où chercher

Receivable notes, income, account period and payment collection information.

Ce qu’il faut évaluer

Track funds tied up from credit sales.

Pourquoi cela varie

A longer period may relax account terms, seasonality, or slower collections; a shorter period may improve factoring, write-offs, or collections.

Limites et réserves

Use a consistent gross or net receivables measure. Tax-inclusive receivables versus tax-exclusive revenue and contract assets may distort the estimate; DSO is not the actual collection period of every invoice.

À examiner aussi

Aging of accounts receivable, operating cash flow, CCC.

Exemple hypothétique

Assume that the average receivables are 100, the annual credit sales income is 1,000, and there are 365 days in the year, then 36.5 days.

Sources: CFA Institute Financial Ratio List

Définition

Use average inventory relative to period cost of sales to estimate how long funds will remain in inventory.

Formule et périmètre

DIO = average inventory ÷ operating cost × number of days in the period; inventory turnover rate = operating cost ÷ average inventory.

Où chercher

Inventory notes, income statement costs.

Ce qu’il faut évaluer

Track stocking, production and sales efficiency.

Pourquoi cela varie

The change may include stocking, production cycle extension, product structure changes or backlog.

Limites et réserves

Inventory impairment will reduce the net amount and may superficially improve turnover; seasonality requires more time points, and it cannot be simply judged that shorter is better.

À examiner aussi

Inventory age, orders, gross profit margin, CCC.

Exemple hypothétique

Assume that the average inventory is 120, the annual cost is 600, and DIO=73 days.

Sources: CFA Institute Financial Ratio List

Définition

Use average trade payables and purchase sizes to estimate payment cycles.

Formule et périmètre

DPO = average trade payables ÷ credit purchases during the period × period days. If purchase data are unavailable, cost of sales may be used as a proxy, with that limitation disclosed.

Où chercher

Payables, procurement, supplier financing and cost information.

Ce qu’il faut évaluer

Observe supplier billing periods and working capital usage.

Pourquoi cela varie

The longer the period, the greater the bargaining power, or the delay in payment due to financial constraints; the impact of the transfer of supply chain financing is comparative.

Limites et réserves

Procurement does not always equal sales cost; manufacturing inventory and production costs are more complex, and precise procurement does not have to be forced by cost changes.

À examiner aussi

DSO, DIO, CCC, cash flow.

Exemple hypothétique

Assume that the average payable is 80, and the annual credit purchase is 800, DPO = 36.5 days; this does not prove that this is the case for all invoice periods.

Sources: CFA Institute Financial Ratio List

Définition

String inventory, receivable and payable days into working capital time indicators.

Formule et périmètre

CCC=DIO+DSO-DPO, the three items adopt the same period and compatible caliber.

Où chercher

Obtained from reports and notes according to DSO, DIO and DPO definitions.

Ce qu’il faut évaluer

See if business growth requires more advance capital, and trace the changes in that period.

Pourquoi cela varie

A longer period may result in increased inventory or receivables usage; a shorter period may simply delay payment to suppliers.

Limites et réserves

A negative cycle is not automatically risk-free. Do not apply this framework mechanically to businesses with large customer advances, financial operations, or complex contracts. CCC is not a bank cash balance and excludes some cash outflows.

À examiner aussi

Operating cash flow, turnover items, and contract liabilities.

Exemple hypothétique

Assume DIO60, DSO30, DPO45, CCC45 days.

Sources: CFA Institute Financial Ratio List

Définition

This is the operating project portfolio; capacity, output, orders, deliveries and revenue are not the same concepts.

Formule et périmètre

Common capacity utilization rate = actual output ÷ available production capacity of the same product caliber during the same period; orders must indicate new additions/on hand, quantity/amount and cancellation conditions.

Où chercher

Production and sales, production capacity, order description and revenue recognition policy.

Ce qu’il faut évaluer

Connect expansion, demand and revenue realization.

Pourquoi cela varie

An increase in utilization rate may improve scale efficiency, or it may approach a bottleneck; an increase in orders on hand may result in strong demand or slow delivery.

Limites et réserves

The design value and effective value of production capacity are different; orders do not determine revenue, let alone cash. Different disclosure calibers cannot be spliced ​​together.

À examiner aussi

Sales volume, gross profit, capital expenditures, inventory.

Exemple hypothétique

Assume that the actual output is 80, the same caliber production capacity is 100, and the utilization rate is 80%; it cannot be concluded that 80 has been sold.

Sources: Source notes for Chapter 2 of Security Analysis

Définition

The net amount of cash inflows minus outflows from operating activities belongs to the cash flow statement.

Formule et périmètre

Read net cash provided by operating activities from the cash-flow statement; it cannot be reconstructed simply as revenue minus expenses.

Où chercher

Cash flow statement and reconciliation statement from net profit to operating cash.

Ce qu’il faut évaluer

Reconcile cash support and working capital changes to profits.

Pourquoi cela varie

Improvements may come from collections, or advance collections, inventory releases, or delayed payments; declines may come from expansion advances.

Limites et réserves

The classification of interest/dividends may be different under different standards; CFO is not money that can be fully distributed as dividends, and non-cash costs also have economic costs.

À examiner aussi

Net profit, CCC, capex, FCF.

Exemple hypothétique

Assume that operating cash inflow is 120 and outflow is 100, and CFO is 20; it is not equal to revenue of 120 or net profit of 20.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Compare the profits in the same range and period with the CFO, first explain the differences and then calculate the ratio.

Formule et périmètre

CFO ÷ consolidated net profit can be observed, but it needs to be matched within the same range; difference adjustment is more important than a single ratio.

Où chercher

Consolidated income statement, cash flow reconciliation, receivables, inventories and payables and non-cash notes.

Ce qu’il faut évaluer

Examine the impact of collections, stocking, payments, and noncash gains and losses on the profit cash variance.

Pourquoi cela varie

Deviations may be expansionary, seasonal, credit policy, or unusual items and do not automatically prove false profits.

Limites et réserves

The ratio is misleading when net profit is zero, negative, or very small. Do not set 100% as a universal passing threshold or compare consolidated CFO divided by profit attributable to the parent across companies without explaining that mismatch.

À examiner aussi

CFO, net profit, DSO, inventory, capex.

Exemple hypothétique

Assume net profit on a consistent basis is 10 and CFO is 6. CFO is 60% of profit; reconcile the gap of 4 before drawing a conclusion.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Cash expenditures for the acquisition and construction of long-term operating assets are divided into maintenance, expansion and capitalized development.

Formule et périmètre

Prioritize reading and reconciliation of cash flow "cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets"; mergers and acquisitions are not automatically included in the narrow sense of Capex.

Où chercher

Notes on investment cash flow, fixed/intangible assets, construction in progress and capital commitments.

Ce qu’il faut évaluer

Understand how much reinvestment is required to maintain profits.

Pourquoi cela varie

Increases could be expansions, updates, price increases or payment timing; decreases could also delay necessary maintenance.

Limites et réserves

The increase in net fixed assets does not equal cash Capex; non-cash leases, credit purchases and mergers and acquisitions need to be listed separately. When maintenance expenses are not disclosed, they cannot be directly equated with depreciation.

À examiner aussi

ROIC, Capacity, CFO, FCF.

Exemple hypothétique

Assume cash paid for equipment is 8 and leased assets of 3 are obtained without an upfront cash payment. Do not record 11 as cash Capex under the narrow definition.

Sources: SEC Beginner’s Guide to Financial Statements · SEC Non-GAAP Financial Measures Q102.07

Définition

There is no single uniform definition; this manual starts with the simplified observation of operating cash flow less selected cash capital expenditures.

Formule et périmètre

Simplified FCF=CFO-Cash Capex; does not automatically equal corporate valuation FCFF or shareholder FCFE.

Où chercher

Cash flow statement and capital expenditure reconciliation; company is not defined by GAAP.

Ce qu’il faut évaluer

Observe the cash balance after operations and long-term investment.

Pourquoi cela varie

A better result may be an improvement in CFO or a reduction in capital expenditures; a negative number may be expansion or operating expenses.

Limites et réserves

Debt repayments, lease principal, acquisitions, and other commitments may still require cash. Do not assume all FCF can be distributed to shareholders. Reconcile definitions across accounting standards and companies first.

À examiner aussi

CFO, Capex, net debt, FCF yield.

Exemple hypothétique

Assume CFO is 20 and cash Capex is 8, giving simplified FCF of 12. Debt coming due may still prevent a dividend of 12.

Sources: SEC Non-GAAP Financial Measures Q102.07 · SEC Beginner’s Guide to Financial Statements

Définition

The multiple of common stock price relative to earnings per share of the same equity caliber.

Formule et périmètre

PE = price per share ÷ corresponding EPS. Indicate the static year, TTM or forecast; the market value/profit version also checks the number of shares and vesting time point.

Où chercher

Market timing, EPS and equity notes, and profit forecast instructions.

Ce qu’il faut évaluer

Compare prices at comparable earnings quality and growth risk.

Pourquoi cela varie

An increase in PE may cause the stock price to rise, or profits may fall; a decline may be cheap, or it may be at a cycle profit high point.

Limites et réserves

When EPS ≤ 0, conventional PE has no economic explanation; predicting PE relies on assumptions, and low PE is not evidence of safety margin.

À examiner aussi

EPS, normal earnings, ROIC, cash flow.

Exemple hypothétique

Assume that the stock price is 20, the annual EPS is 2, and the PE is 10 times; it is not a promise to recover the principal in 10 years.

Sources: SEC Beginner’s Guide to Financial Statements

Définition

Common stock price relative to common stock attributable net assets.

Formule et périmètre

PB = common stock market value ÷ corresponding common stock book equity, or price ÷ corresponding net assets per share.

Où chercher

Notes on market prices, share capital, equity and intangible assets.

Ce qu’il faut évaluer

Look at price in light of asset quality and return capabilities.

Pourquoi cela varie

The decline may include a drop in price, or retained profits may increase equity; the level may also be affected by ROE and asset measurement.

Limites et réserves

It is difficult to explain negative equity or minimal equity; mergers involving minority shareholders' equity cannot be directly matched with the common stock market value of the parent company. PB<1 does not guarantee cheaper liquidation.

À examiner aussi

ROE, goodwill, asset quality, PE.

Exemple hypothétique

Assume that the common stock market value is 100, corresponding book equity is 80, and PB is 1.25 times.

Sources: CFA Institute Financial Ratio List

Définition

EV attempts to cover the value of relevant capital providers; EBITDA is an indicator after adding back interest, taxes, depreciation and amortization to the selected profit caliber.

Formule et périmètre

Illustrative EV = common equity market value + debt + preferred equity + non-controlling interests − deductible cash. Compare EV with EBITDA for a matching period and consistent lease treatment.

Où chercher

Market prices, borrowings, cash, leases and EBITDA adjustments.

Ce qu’il faut évaluer

Assist comparison between similar businesses with different capital structures.

Pourquoi cela varie

Changes may come from corporate pricing or caliber changes such as EBITDA and leasing.

Limites et réserves

Debt book value is only an approximation of market value; EBITDA is non-cash flow and does not deduct maintenance capital expenditures and changes in working capital; negative or very small denominators are not interpreted as normal multiples.

À examiner aussi

Capex, FCF, net debt, interest cover.

Exemple hypothétique

Assume equity market value is 100, debt is 30, deductible cash is 10, and there are no other adjustments. EV is 120; with EBITDA of 20, EV/EBITDA is 6×.

Sources: Damodaran Enterprise Value Multiples and Equity Bridge · SEC Non-GAAP Financial Measures Q102.07

Définition

Compare clear caliber cash flows to matching valuation targets.

Formule et périmètre

If simplified (CFO-Capex) ÷ common stock market value is used, indicate that only rough screening is required and the classification of claims, minority shareholders and interest needs to be verified; strictly FCFE is allocated to equity value, and FCFF is allocated to EV.

Où chercher

Market capitalization or EV on the same day, clear free cash flow adjustment for the period.

Ce qu’il faut évaluer

Use a cash perspective to supplement earnings multiples and not confuse them with dividend yields.

Pourquoi cela varie

A higher yield may reflect a lower price, better operating cash flow, or underinvestment in necessary assets.

Limites et réserves

All corporate cash earnings cannot be allocated to the equity of the parent company to obtain an accurate rate of return; the timing of collection at the end of the year will be distorted. Negative amounts and one-time releases of funds require explanation.

À examiner aussi

FCF, Capex, EV, net debt.

Exemple hypothétique

Assume FCFE attributable to common equity is 10 and the corresponding equity market value is 100. The FCFE yield is 10%; it does not guarantee a 10% investment return.

Sources: SEC Non-GAAP Financial Measures Q102.07 · CFA Institute Financial Ratio List

Définition

The dividend rate uses the purchase price as the denominator, and the payout ratio uses attributable earnings as the denominator.

Formule et périmètre

Historical cash dividend yield = cash dividend per share ÷ price of the same share class. Payout ratio = cash dividends to common shares ÷ earnings attributable to those shares.

Où chercher

Dividend plan/implementation announcement, profit distribution, equity and cash flow.

Ce qu’il faut évaluer

Distinguish between the purchase price income and the degree of profit distribution, and check cash support.

Pourquoi cela varie

An increase in the dividend rate may simply be a decrease in the stock price; an increase in the payout ratio may be a decrease in profits or a special dividend.

Limites et réserves

Separate historical from declared dividends and regular from special dividends. Ex-dividend adjustments do not create a free return. Payout ratios are misleading when profit is negative or very small; consider taxes and fees separately.

À examiner aussi

CFO, FCF, debt, EPS.

Exemple hypothétique

Assume cash dividend per share is 1 and share price is 20, giving a historical dividend yield of 5%. If EPS is 2, the payout ratio is 50%; these measure different things.

Sources: CFA Institute Financial Ratio List · SEC Beginner’s Guide to Financial Statements

Définition

The discount is an arithmetic difference; the margin of safety also needs to be supported by conservative value, asset and profit protection and risk judgment.

Formule et périmètre

Valuation discount = (estimated value per share - price) ÷ estimated value per share; the value must be positive and consistent.

Où chercher

Valuation drafts, same-day price, risk and sensitivity records.

Ce qu’il faut évaluer

Examine the distance between price and evidence-based value, and ask where the valuation might be wrong.

Pourquoi cela varie

Expanding the discount may lower the price, or may raise the assumptions on its own, but the latter does not mean safer.

Limites et réserves

It cannot be stipulated that any 30% will automatically qualify; the value range may change or be wrong, and discounts do not guarantee profit.

À examiner aussi

Normal earnings, asset quality, debt, valuation sensitivity.

Exemple hypothétique

Assume that the conservative valuation range is 80-100, the purchase price is 60, and the discount is 25% according to the lower limit; this is a trial calculation and does not prove actual safety.

Sources: Source notes for Chapter 2 of Security Analysis