Lecture International financial statement analysis: Chapter 1 - CFA Institute

Chapter 1 Financial StatementAnalysis: An Introduction financial reporting and financial statement analysis Financial Reporting Financial Statement Analysis • Providing financial information about an entity to enable users to make decisions • Financial information includes financial statements and other types of reports • Using financial information to assess prior performance and likely future performance to make decisions • Typical decision: capital allocation Copyright © 2013 CFA 2 Institute FINANCIAL REPORTING what the company reported (excerpt) Apple Reports Second Quarter Results Record March Quarter Sales of iPhones, iPads and Macs Net Profit Increases 94% Year­over­Year CUPERTINO, California—April 24, 2012—Apple® today announced financial results for its fiscal 2012 second quarter ended March 31, 2012. The Company posted quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion, or $12.30 per diluted share. These results compare to revenue of $24.7 billion and net profit of $6.0 billion, or $6.40 per diluted share, in the year­ago quarter. Gross margin was 47.4 percent compared to 41.4 percent in the year­ago quarter. International sales accounted for 64 percent of the quarter’s revenue. Excerpt from Apple’s earnings announcement (2Q2012) Copyright © 2013 CFA 3 Institute Financial analysis Analysts’ response (excerpt) On April 24, 2012, Apple (AAPL) reported results that blew past everyone`s expectations, including our expectations. Apple reported quarterly revenue of $39.2B and quarterly profit of $11.6B, or $12.30 EPS. This surpassed the $10.07 consensus estimates from the analyst community. Apple saw growth due to strong sales growth from all of its product lines. Revenue enjoyed a mammoth 59% increase versus Q2 2011 and EPS grew by over 92%. EPS Growth was also aided by a higher gross margin, which was aided by lower commodity input costs associated with Apple`s products. Saibus Research , Seeking Alpha (25 April 2012) Copyright © 2013 CFA 4 Institute FINANCIAL STATEMENTS • Statement of Financial Position • Statement of Comprehensive Income • Statement of Changes in Equity • Statement of Cash Flows • Notes Copyright © 2013 CFA 5 Institute ... - tailieumienphi.vn