Chapter 3

Financial
Statements
and Ratio Analysis

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All rights reserved.
 Learning Goals

LG1 Understand who uses financial ratios and how.

.‫ﻓﮭم ﻣن ﯾﺳﺗﺧدم اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ وﻛﯾف‬-1

LG2 Use ratios to analyze a firm’s liquidity and activity.

.‫اﺳﺗﺧدام اﻟﻧﺳب ﻟﺗﺣﻠﯾل ﺳﯾوﻟﺔ اﻟﺷرﻛﺔ وﻧﺷﺎطﮭﺎ‬-2

LG3 Discuss the relationship between debt and financial

leverage and the ratios used to analyze a firm’s debt.
.‫ﻧﺎﻗش اﻟﻌﻼﻗﺔ ﺑﯾن اﻟدﯾن واﻟراﻓﻌﺔ اﻟﻣﺎﻟﯾﺔ واﻟﻧﺳب اﻟﻣﺳﺗﺧدﻣﺔ ﻟﺗﺣﻠﯾل دﯾون اﻟﺷرﻛﺔ‬-3

LG4 Use ratios to analyze a firm’s profitability and its

market value..
.‫اﺳﺗﺧدام اﻟﻧﺳب ﻟﺗﺣﻠﯾل رﺑﺣﯾﺔ اﻟﺷرﻛﺔ وﻗﯾﻣﺗﮭﺎ اﻟﺳوﻗﯾﺔ‬-4

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 The Two Key Financial Statements:
The Income Statement ‫ ﺑﯾﺎن اﻟدﺧل‬:‫اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ اﻟرﺋﯾﺳﯾﺔ‬
• The income statement provides a financial summary of
a company’s operating results during a specified period.
.‫ﯾﻘدم ﺑﯾﺎن اﻟدﺧل ﻣﻠﺧﺻﺎ ﻣﺎﻟﯾﺎ ﻟﻧﺗﺎﺋﺞ ﺗﺷﻐﯾل اﻟﺷرﻛﺔ ﺧﻼل ﻓﺗرة ﻣﺣددة‬
• common stock outstanding in 2011 = 76,244 76,244 = 2011 ‫اﻷﺳﮭم اﻟﻌﺎدﯾﺔ ﻏﯾر اﻟﻣﺳددة ﻓﻲ ﻋﺎم‬
• common stock outstanding in 2012 = 76,262 76,262 = 2012 ‫اﻷﺳﮭم اﻟﻌﺎدﯾﺔ ﻏﯾر اﻟﻣﺳددة ﻓﻲ ﻋﺎم‬

• Annual principal payments on a portion of the firm’s total outstanding debt

amount to $71,000. .‫ دوﻻر‬71 000 ‫وﺗﺑﻠﻎ اﻟﻣدﻓوﻋﺎت اﻟﺳﻧوﯾﺔ اﻟرﺋﯾﺳﯾﺔ ﻟﺟزء ﻣن ﻣﺟﻣوع دﯾون اﻟﺷرﻛﺔ ﻏﯾر اﻟﻣﺳددة‬
• Tax rate = 29% ٪29 = ‫ﻣﻌدل اﻟﺿرﯾﺑﺔ‬

• Bartlett Company’s common stock was selling at $32.25.

‫ دوﻻر‬98,378 = ‫ إﺟﻣﺎﻟﻲ اﻷرﺑﺎح‬.‫ دوﻻر‬32.25 ‫وﻛﺎن ﺳﮭم ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت اﻟﻌﺎدﯾﺔ ﺑﯾﻊ ﻓﻲ‬
Total dividends = $98,378
Bartlett Company’s purchases equaled 70 percent of its cost of goods sold in 2012
2012 ‫ ﻓﻲ اﻟﻣﺎﺋﺔ ﻣن ﺗﻛﻠﻔﺔ اﻟﺳﻠﻊ اﻟﻣﺑﺎﻋﺔ ﻓﻲ ﻋﺎم‬70 ‫ﺗﻌﺎدل ﻣﺷﺗرﯾﺎت ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت‬

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 Table 3.1 Bartlett Company Income
Statements ($000)

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 The Two Key Financial Statements: The
Balance Sheet

• The balance sheet presents a summary of a firm’s

financial position at a given point in time.
‫وﺗﻘدم اﻟﻣﯾزاﻧﯾﺔ اﻟﻌﻣوﻣﯾﺔ ﻣوﺟزا ﻋن اﻟوﺿﻊ اﻟﻣﺎﻟﻲ ﻟﻠﺷرﻛﺔ ﻓﻲ وﻗت‬
.‫ﻣﻌﯾن‬

• The statement balances the firm’s assets (what it owns)

against its financing, which can be either debt (what it
owes) or equity (what was provided by owners)
.(‫ اﻟذي ﯾﻣﻛن أن ﯾﻛون إﻣﺎ دﯾﻧﺎ )ﻣﺎ ﺗدﯾن ﺑﮫ( أو أﺳﮭﻣﺎ )ﻣﺎ ﻗدﻣﮫ اﻟﻣﺎﻟﻛون‬،‫وﯾوازن اﻟﺑﯾﺎن أﺻول اﻟﺷرﻛﺔ )ﻣﺎ ﺗﻣﻠﻛﮫ( ﻣﻊ ﺗﻣوﯾﻠﮭﺎ‬

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 Table 3.2a Bartlett Company Balance
Sheets ($000)

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 Table 3.2b Bartlett Company Balance
Sheets ($000)

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 Table 3.3b Bartlett Company Statement
of Cash Flows ($000)

The statement of cash flows is a summary of the

cash flows over the period of concern. The
statement provides insight into the firm’s
operating, investment, and financing

‫ ﯾﻘدم اﻟﺑﯾﺎن ﻧظرة ﺛﺎﻗﺑﺔ ﻋﻠﻰ ﻋﻣﻠﯾﺎت اﻟﺷرﻛﺔ‬.‫ﺑﯾﺎن اﻟﺗدﻓﻘﺎت اﻟﻧﻘدﯾﺔ ھو ﻣﻠﺧص ﻟﻠﺗدﻓﻘﺎت اﻟﻧﻘدﯾﺔ ﺧﻼل اﻟﻔﺗرة اﻟﻣﻌﻧﯾﺔ‬
‫واﺳﺗﺛﻣﺎراﺗﮭﺎ وﺗﻣوﯾﻠﮭﺎ‬

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 Table 3.3b Bartlett Company Statement
of Cash Flows ($000)

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 Notes to The Financial Statements
‫ﻣﻼﺣظﺎت ﻋﻠﻰ اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ‬

provide detailed information on the accounting

policies, procedures, calculations, and
transactions underlying entries in the financial
statements. Common issues addressed by these
notes include revenue recognition, income taxes,
breakdowns of fixed asset accounts
‫ وﺗﺷﻣل اﻟﻘﺿﺎﯾﺎ‬.‫ﺗﻘدﯾم ﻣﻌﻠوﻣﺎت ﻣﻔﺻﻠﺔ ﻋن اﻟﺳﯾﺎﺳﺎت اﻟﻣﺣﺎﺳﺑﯾﺔ واﻹﺟراءات واﻟﺣﺳﺎﺑﺎت واﻟﻣﻌﺎﻣﻼت اﻷﺳﺎﺳﯾﺔ ﻓﻲ اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ‬
‫ وأﻋطﺎل ﺣﺳﺎﺑﺎت اﻷﺻول اﻟﺛﺎﺑﺗﺔ‬،‫ وﺿراﺋب اﻟدﺧل‬،‫اﻟﻣﺷﺗرﻛﺔ اﻟﺗﻲ ﺗﺗﻧﺎوﻟﮭﺎ ھذه اﻟﻣذﻛرات اﻻﻋﺗراف ﺑﺎﻹﯾرادات‬

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 Using Financial Ratios:
Interested Parties ‫ اﻷطراف اﻟﻣﮭﺗﻣﺔ‬:‫اﺳﺗﺧدام اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ‬

• Ratio analysis involves methods of calculating and interpreting

financial ratios to analyze and monitor the firm’s performance.
.‫ﯾﺗﺿﻣن ﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ أﺳﺎﻟﯾب ﺣﺳﺎب وﺗﻔﺳﯾر اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ ﻟﺗﺣﻠﯾل وﻣراﻗﺑﺔ أداء اﻟﺷرﻛﺔ‬
• Current and prospective shareholders are interested in the
firm’s current and future level of risk and return, which directly
affect share price. ،‫ﯾﮭﺗم اﻟﻣﺳﺎھﻣون اﻟﺣﺎﻟﯾون واﻟﻣﺣﺗﻣﻠﯾن ﺑﻣﺳﺗوى اﻟﻣﺧﺎطر واﻟﻌﺎﺋد اﻟﺣﺎﻟﻲ واﻟﻣﺳﺗﻘﺑﻠﻲ ﻟﻠﺷرﻛﺔ‬
.‫واﻟذي ﯾؤﺛر ﺑﺷﻛل ﻣﺑﺎﺷر ﻋﻠﻰ ﺳﻌر اﻟﺳﮭم‬
• Creditors are interested in the short-term liquidity of the
company and its ability to make interest and principal payments.
.‫وﯾﮭﺗم اﻟداﺋﻧون ﺑﺎﻟﺳﯾوﻟﺔ اﻟﻘﺻﯾرة اﻷﺟل ﻟﻠﺷرﻛﺔ وﻗدرﺗﮭﺎ ﻋﻠﻰ ﺗﺳدﯾد اﻟﻔﺎﺋدة وﻣدﻓوﻋﺎت رأس اﻟﻣﺎل‬
• Management is concerned with all aspects of the firm’s financial
situation, and it attempts to produce financial ratios that will be
considered favorable by both owners and creditors.
.‫ وﺗﺣﺎول إﻧﺗﺎج ﻧﺳب ﻣﺎﻟﯾﺔ ﺳﯾﻌﺗﺑرھﺎ اﻟﻣﺎﻟﻛون واﻟداﺋﻧون ﻣواﺗﯾﺔ‬، ‫ﺗﮭﺗم اﻹدارة ﺑﺟﻣﯾﻊ ﺟواﻧب اﻟوﺿﻊ اﻟﻣﺎﻟﻲ ﻟﻠﺷرﻛﺔ‬

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 Using Financial Ratios: ‫ أﻧواع ﻣﻘﺎرﻧﺎت اﻟﻧﺳﺑﺔ‬:‫اﺳﺗﺧدام اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ‬
Types of Ratio Comparisons

• Cross-sectional analysis is the comparison of different firms’

financial ratios at the same point in time; involves comparing the
firm’s ratios to those of other firms in its industry or to industry
averages ‫اﻟﺗﺣﻠﯾل اﻟﻣﻘطﻌﻲ ھو ﻣﻘﺎرﻧﺔ اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ ﻟﻠﺷرﻛﺎت اﻟﻣﺧﺗﻠﻔﺔ ﻓﻲ ﻧﻔس اﻟوﻗت؛ ﯾﻧطوي ﻋﻠﻰ ﻣﻘﺎرﻧﺔ ﻧﺳب اﻟﺷرﻛﺔ إﻟﻰ ﻧﺳب‬
‫اﻟﺷرﻛﺎت اﻷﺧرى ﻓﻲ ﺻﻧﺎﻋﺗﮭﺎ أو إﻟﻰ ﻣﺗوﺳطﺎت اﻟﺻﻧﺎﻋﺔ‬

.Benchmarking is a type of cross-sectional analysis in which the

firm’s ratio values are compared to those of a key competitor or group
of competitors that it wishes to emulate. ‫إن اﻟﻘﯾﺎس ھو ﻧوع ﻣن اﻟﺗﺣﻠﯾل اﻟﻣﻘطﻌﻲ اﻟذي ﺗﺗم ﻓﯾﮫ ﻣﻘﺎرﻧﺔ ﻗﯾم‬
.‫ﻧﺳﺑﺔ اﻟﺷرﻛﺔ ﺑﻘﯾم ﻣﻧﺎﻓس رﺋﯾﺳﻲ أو ﻣﺟﻣوﻋﺔ ﻣن اﻟﻣﻧﺎﻓﺳﯾن اﻟذﯾن ﺗرﻏب ﻓﻲ ﻣﺣﺎﻛﺎﺗﮭم‬

.Comparison to industry averages is also popular cross-

sectional analysis.. ‫ﻣﻘﺎرﻧﺔ ﻣﻊ ﻣﺗوﺳطﺎت اﻟﺻﻧﺎﻋﺔ ھو أﯾﺿﺎ ﺗﺣﻠﯾل ﻣﻘطﻌﻲ ﻋﺑر اﻟﻘطﺎﻋﺎت‬

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 Using Financial Ratios: Types of Ratio
Comparisons (cont.) ‫ أﻧواع ﻣﻘﺎرﻧﺎت اﻟﻧﺳﺑﺔ ﺗﺎﺑﻊ‬:‫اﺳﺗﺧدام اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ‬

• Time-series analysis is the evaluation of the firm’s

financial performance over time using financial ratio
‫ﺗﺣﻠﯾل اﻟﺳﻠﺳﻠﺔ اﻟزﻣﻧﯾﺔ ھو ﺗﻘﯾﯾم اﻷداء اﻟﻣﺎﻟﻲ ﻟﻠﺷرﻛﺔ ﻣﻊ ﻣرور اﻟوﻗت ﺑﺎﺳﺗﺧدام ﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ اﻟﻣﺎﻟﯾﺔ‬

.Comparison of current to past performance, using

ratios, enables analysts to assess the firm’s progress.
.‫ ﺗﻣﻛن اﻟﻣﺣﻠﻠﯾن ﻣن ﺗﻘﯾﯾم ﺗﻘدم اﻟﺷرﻛﺔ‬،‫ ﺑﺎﺳﺗﺧدام اﻟﻧﺳب‬،‫ﻣﻘﺎرﻧﺔ اﻷداء اﻟﺣﺎﻟﻲ إﻟﻰ اﻟﻣﺎﺿﻲ‬

.Developing trends can be seen by using multiyear

comparisons..‫وﯾﻣﻛن رؤﯾﺔ اﻻﺗﺟﺎھﺎت اﻟﻧﺎﻣﯾﺔ ﺑﺎﺳﺗﺧدام ﻣﻘﺎرﻧﺎت ﻣﺗﻌددة اﻟﺳﻧوات‬
• The most informative approach to ratio analysis
combines cross-sectional and time-series analyses.
.‫وﯾﺟﻣﻊ اﻟﻧﮭﺞ اﻷﻛﺛر إﻓﺎدة ﻟﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ ﺑﯾن اﻟﺗﺣﻠﯾﻼت اﻟﻣﻘطﻌﯾﺔ اﻟﻌرﺿﯾﺔ واﻟﺳﻼﺳل اﻟزﻣﻧﯾﺔ‬
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 Figure 3.1 Combined Analysis

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 Categories of Financial Ratios ‫ﻓﺋﺎت اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ‬

Financial ratios can be divided for convenience into five

basic categories:
‫ﯾﻣﻛن ﺗﻘﺳﯾم اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ ﻟﻠراﺣﺔ إﻟﻰ‬
• Liquidity ratios: measure risk. (2) :‫ﺧﻣس ﻓﺋﺎت أﺳﺎﺳﯾﺔ‬
(2) .‫ ﻗﯾﺎس اﻟﻣﺧﺎطر‬:‫ﻧﺳب اﻟﺳﯾوﻟﺔ‬
(5) .‫ ﻗﯾﺎس اﻟﻣﺧﺎطر‬:‫ﻧﺳب اﻟﻧﺷﺎط‬
• Activity ratios: measure risk. (5) (3) .‫ ﻗﯾﺎس اﻟﻣﺧﺎطر‬:‫ﻧﺳب اﻟدﯾن‬
(6) .‫ ﻗﯾﺎس اﻟﻌﺎﺋد‬:‫ﻧﺳب اﻟرﺑﺣﯾﺔ‬
• Debt ratios: measure risk. (3) .‫ ﻗﯾﺎس اﻟﻣﺧﺎطر واﻟﻌﺎﺋد‬:‫ﻧﺳب اﻟﺳوق‬

• Profitability ratios: measure return. (6)

• Market ratios: measure risk and return.

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 CAUTIONS ABOUT USING RATIO
ANALYSIS ‫ﯾﺣذر ﺣول اﺳﺗﺧدام ﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ‬

1. Ratios that reveal large deviations from the norm merely indicate the
possibility of a problem. .‫ اﻟﻧﺳب اﻟﺗﻲ ﺗﻛﺷف ﻋن اﻧﺣراﻓﺎت ﻛﺑﯾرة ﻋن اﻟﻘﺎﻋدة ﺗﺷﯾر ﻓﻘط إﻟﻰ إﻣﻛﺎﻧﯾﺔ ﺣدوث ﻣﺷﻛﻠﺔ‬-1

2. A single ratio does not generally provide sufficient information from which to
judge the overall performance of the firm. ‫ وﻻ ﺗوﻓر ﻧﺳﺑﺔ واﺣدة ﻋﻣوﻣﺎ ﻣﻌﻠوﻣﺎت ﻛﺎﻓﯾﺔ ﯾﻣﻛن ﻣن ﺧﻼﻟﮭﺎ‬-2
.‫اﻟﺣﻛم ﻋﻠﻰ اﻷداء اﻟﻌﺎم ﻟﻠﺷرﻛﺔ‬
3. The ratios being compared should be calculated using financial statements
dated at the same point in time. ‫ وﯾﻧﺑﻐﻲ ﺣﺳﺎب اﻟﻧﺳب اﻟﺗﻲ ﺗﺟري ﻣﻘﺎرﻧﺗﮭﺎ ﺑﺎﺳﺗﺧدام اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ اﻟﻣؤرﺧﺔ‬-3
.‫ﻓﻲ ﻧﻔس اﻟﻧﻘطﺔ اﻟزﻣﻧﯾﺔ‬
4. It is preferable to use audited financial statements for ratio analysis.
.‫ وﯾﻔﺿل اﺳﺗﺧدام اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ اﻟﻣراﺟﻌﺔ ﻟﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ‬-4
5. The financial data being compared should have been developed in the
sameway. .‫ وﻛﺎن ﯾﻧﺑﻐﻲ وﺿﻊ اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ اﻟﺗﻲ ﺗﺟري ﻣﻘﺎرﻧﺗﮭﺎ ﺑﻧﻔس اﻟطرﯾﻘﺔ‬-5

6. Results can be distorted by inflation, which can cause the book values of
inventory to differ. .‫ اﻟذي ﯾﻣﻛن أن ﯾؤدي إﻟﻰ اﺧﺗﻼف اﻟﻘﯾم اﻟدﻓﺗرﯾﺔ ﻟﻠﻣﺧزون‬،‫ وﯾﻣﻛن ﺗﺷوﯾﮫ اﻟﻧﺗﺎﺋﺞ ﺑﺳﺑب اﻟﺗﺿﺧم‬-6

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 Ratio Analysis Example ‫ﻣﺛﺎل ﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ‬

We will illustrate the use of financial ratios for analyzing

financial statements using the Bartlett Company Income
Statements and Balance Sheets presented earlier in
Tables 3.1 and 3.2.
‫ﺳوف ﻧوﺿﺢ اﺳﺗﺧدام اﻟﻧﺳب اﻟﻣﺎﻟﯾﺔ ﻟﺗﺣﻠﯾل اﻟﺑﯾﺎﻧﺎت اﻟﻣﺎﻟﯾﺔ ﺑﺎﺳﺗﺧدام ﺑﯾﺎﻧﺎت دﺧل ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت واﻟﻣﯾزاﻧﯾﺎت اﻟﻌﻣوﻣﯾﺔ اﻟﻣﻘدﻣﺔ ﻓﻲ وﻗت‬
.3.2 ‫ و‬3.1 ‫ﺳﺎﺑق ﻓﻲ اﻟﺟدوﻟﯾن‬

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 Ratio Analysis ‫ﺗﺣﻠﯾل اﻟﻧﺳﺑﺔ‬

Liquidity Ratios: measure the firm’s ability to meet its

short term obligations..‫ ﻗﯾﺎس ﻗدرة اﻟﺷرﻛﺔ ﻋﻠﻰ اﻟوﻓﺎء ﺑﺎﻟﺗزاﻣﺎﺗﮭﺎ ﻗﺻﯾرة اﻷﺟل‬:‫ﻧﺳب اﻟﺳﯾوﻟﺔ‬
• Current ratio ‫اﻟﻧﺳﺑﺔ اﻟﺣﺎﻟﯾﺔ‬
• Quick ratio ‫ﻧﺳﺑﺔ ﺳرﯾﻌﺔ‬

© 2012 Pearson Prentice Hall. All rights reserved. 3-18

 Matter of Fact

Determinants of liquidity needs ‫ﻣﺣددات اﺣﺗﯾﺎﺟﺎت اﻟﺳﯾوﻟﺔ‬

– Large enterprises generally have well established

relationships with banks that can provide lines of
credit and other short-term loan products in the event
that the firm has a need for liquidity.
– Smaller firms may not have the same access to credit,
and therefore they tend to operate with more liquidity.
- ‫وﻟﻠﻣﻧﺷﺂت اﻟﻛﺑﯾرة ﻋﻣوﻣﺎ ﻋﻼﻗﺎت راﺳﺧﺔ ﻣﻊ اﻟﻣﺻﺎرف اﻟﺗﻲ ﯾﻣﻛﻧﮭﺎ ﺗوﻓﯾر ﺧطوط اﺋﺗﻣﺎن وﻣﻧﺗﺟﺎت ﻗروض‬
.‫أﺧرى ﻗﺻﯾرة اﻷﺟل ﻓﻲ ﺣﺎﻟﺔ اﺣﺗﯾﺎج اﻟﺷرﻛﺔ إﻟﻰ اﻟﺳﯾوﻟﺔ‬

- ‫ وﺑﺎﻟﺗﺎﻟﻲ ﻓﺈﻧﮭﺎ ﺗﻣﯾل إﻟﻰ اﻟﻌﻣل ﺑﺳﯾوﻟﺔ‬،‫وﻗد ﻻ ﯾﻛون ﻟﻠﺷرﻛﺎت اﻷﺻﻐر ﻧﻔس إﻣﻛﺎﻧﯾﺔ اﻟﺣﺻول ﻋﻠﻰ اﻻﺋﺗﻣﺎن‬
.‫أﻛﺑر‬

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 Ratio Analysis (cont.)

Liquidity Ratios ‫ﻧﺳب اﻟﺳﯾوﻟﺔ‬

Current ratio = Current assets ÷Current liabilities

‫اﻟﻧﺳب اﻟﺣﺎﻟﯾﺔ = اﻷﺻول اﻟﺣﺎﻟﯾﺔ ÷ اﻟﺧﺻوم اﻟﺣﺎﻟﯾﺔ‬

The current ratio for Bartlett Company in 2012 is:

$1,223,000 ÷ $620,000 = 1.97‫ دوﻻر‬1.97
:‫ ھﻲ‬2012 ‫اﻟﻧﺳﺑﺔ اﻟﺣﺎﻟﯾﺔ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻓﻲ ﻋﺎم‬
= ‫ دوﻻر‬620 000 ÷ ‫ دوﻻر‬1 223 000

What does that mean? ‫ﻣﺎذا ﯾﻌﻧﻲ ذﻟك؟‬

The company can pay the current liabilities from its

current assets 1.97 times a year. ‫ﯾﻣﻛن ﻟﻠﺷرﻛﺔ دﻓﻊ اﻟﺧﺻوم اﻟﺣﺎﻟﯾﺔ ﻣن أﺻوﻟﮭﺎ اﻟﺣﺎﻟﯾﺔ‬
.‫ ﻣرة ﻓﻲ اﻟﺳﻧﺔ‬1.97

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 Ratio Analysis (cont.)

Liquidity Ratios ‫ﻧﺳب اﻟﺳﯾوﻟﺔ‬

‫اﻟﻣﺧزون ! اﻟﺣﺎﻟﯾﺔ اﻻﺻول‬

‫= ﻧﺳب ﺳرﯾﻌﺔ‬ ‫اﻟﺣﺎﻟﯾﺔ اﻟﺧﺻوم‬

The quick ratio for Bartlett Company in 2012 is: :‫ ھﻲ‬2012 ‫اﻟﻧﺳﺑﺔ اﻟﺳرﯾﻌﺔ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻓﻲ ﻋﺎم‬

What does that mean? ‫ﻣﺎذا ﯾﻌﻧﻲ ذﻟك؟‬

The company can pay the current liabilities from its current assets
without inventory 1.5 times a year. ‫ﻟﺣﺎﻟﯾﺔ ﻣن أﺻوﻟﮭﺎ اﻟﺣﺎﻟﯾﺔ دون‬.‫ﺔ دﻣﻓرﻊة اﻓﻟﺧﻲ اﻟﺻﺳوﻧمﺔا‬1.5
‫ﯾﻣﻛن ﻟﻠﺷرﻛ‬
‫ﻣﺧزون‬

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 Why We Should Deduct Inventories from
Current Assets. .‫ﻟﻣﺎذا ﯾﺟب أن ﻧﺧﺻم اﻟﻣﺧزوﻧﺎت ﻣن اﻷﺻول اﻟﺣﺎﻟﯾﺔ‬

The generally low liquidity of inventory results from three primary factors:
:‫وﺗﺗرﺗب اﻟﺳﯾوﻟﺔ اﻟﻣﻧﺧﻔﺿﺔ ﻋﻣوﻣﺎ ﻟﻠﻣﺧزون ﻋﻠﻰ ﺛﻼﺛﺔ ﻋواﻣل رﺋﯾﺳﯾﺔ ھﻲ‬

1. Many types of inventory cannot be easily sold because they are partially
completed items, special purpose items and the like.
.‫ﻻ ﯾﻣﻛن ﺑﯾﻊ اﻟﻌدﯾد ﻣن أﻧواع اﻟﻣﺧزون ﺑﺳﮭوﻟﺔ ﻷﻧﮭﺎ ﻋﻧﺎﺻر ﻣﻛﺗﻣﻠﺔ ﺟزﺋﯾﺎ وأﺻﻧﺎف ذات أﻏراض ﺧﺎﺻﺔ وﻣﺎ إﻟﻰ ذﻟك‬
2. Inventory is typically sold on credit which means that it becomes an
account receivable before being converted into cash.
.‫وﻋﺎدة ﻣﺎ ﯾﺑﺎع اﻟﻣﺧزون ﻋﻠﻰ اﻻﺋﺗﻣﺎن ﻣﻣﺎ ﯾﻌﻧﻲ أﻧﮫ ﯾﺻﺑﺢ ﺣﺳﺎﺑﺎ ﻣﺳﺗﺣق اﻟﻘﺑض ﻗﺑل ﺗﺣوﯾﻠﮫ إﻟﻰ ﻧﻘد‬

3. In the times when companies face the most dire need for liquidity (when
business is bad), are precisely the times when it is most difficult to
convert inventory into cash by selling it.
.‫ ھﻲ ﺑﺎﻟﺿﺑط اﻷوﻗﺎت اﻟﺗﻲ ﯾﻛون ﻓﯾﮭﺎ ﺗﺣوﯾل اﻟﻣﺧزون إﻟﻰ ﻧﻘد أﺻﻌب ﻣن ﺧﻼل ﺑﯾﻌﮫ‬، (‫ﻓﻲ اﻷوﻗﺎت اﻟﺗﻲ ﺗواﺟﮫ ﻓﯾﮭﺎ اﻟﺷرﻛﺎت أﺷد اﻟﺣﺎﺟﺔ إﻟﻰ اﻟﺳﯾوﻟﺔ )ﻋﻧدﻣﺎ ﺗﻛون اﻷﻋﻣﺎل ﺳﯾﺋﺔ‬

‘’ Built to order’’ business? ‫'' ﺑﻧﯾت ﻷﺟل'' اﻷﻋﻣﺎل؟‬

‫اﻟﺣﺎﻟﻲ = ﺣﻣض‬
‫ﻣﺎﻓﮭﻣﺗﮭﺎ‬
Current = Acid

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 Ratio Analysis (cont.)

Activity Ratios: measure the speed with which various

accounts are converted into sales or cash: (Ability of
using our resources to generate sales)
‫ )اﻟﻘدرة ﻋﻠﻰ اﺳﺗﺧدام ﻣواردﻧﺎ‬:‫ ﻗﯾﺎس اﻟﺳرﻋﺔ اﻟﺗﻲ ﯾﺗم ﺑﮭﺎ ﺗﺣوﯾل اﻟﺣﺳﺎﺑﺎت اﻟﻣﺧﺗﻠﻔﺔ إﻟﻰ ﻣﺑﯾﻌﺎت أو ﻧﻘد‬:‫ﻧﺳب اﻟﻧﺷﺎط‬

• Inventory turnover (‫ﻟﺗوﻟﯾد اﻟﻣﺑﯾﻌﺎت‬

‫دوران اﻟﻣﺧزون‬
• Average age of inventory ‫ﻣﺗوﺳط ﻋﻣر اﻟﻣﺧزون‬

• Average collection period ‫ﻣﺗوﺳط ﻓﺗرة اﻟﺗﺣﺻﯾل‬

‫ﻣﺗوﺳط ﻓﺗرة اﻟدﻓﻊ‬

• Average payment period
‫إﺟﻣﺎﻟﻲ دوران اﻷﺻول‬
• Total asset turnover

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 Ratio Analysis (cont.)

Activity Ratios ‫ﻧﺳب اﻟﻧﺷﺎط‬

Inventory turnover = Cost of goods sold ÷Inventory

‫دوران اﻟﻣﺧزون = ﺗﻛﻠﻔﺔ اﻟﺳﻠﻊ اﻟﻣﺑﺎﻋﺔ ÷ اﻟﻣﺧزون‬
measures the activity, or liquidity, of a firm’s inventory.
.‫ﯾﻘﯾس ﻧﺷﺎط أو ﺳﯾوﻟﺔ ﻣﺧزون اﻟﺷرﻛﺔ‬

Applying this relationship to Bartlett Company in 2012 yields:

:‫ اﻟﻐﻠﺔ‬2012 ‫ﺗطﺑﯾق ھذه اﻟﻌﻼﻗﺔ ﻋﻠﻰ ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻓﻲ‬

$2,088,000 ÷$289,000 = 7.2 ‫ دوﻻرات‬7.2 = ‫ دوﻻر‬289 000 ÷ ‫ دوﻻر‬2 088 000

What does that mean? ‫ﻣﺎذا ﯾﻌﻧﻲ ذﻟك؟‬

That means the firm can turn the inventory into sales 7.2 times a
year. .‫ ﻣرات ﻓﻲ اﻟﺳﻧﺔ‬7.2 ‫وھذا ﯾﻌﻧﻲ أن اﻟﺷرﻛﺔ ﯾﻣﻛن أن ﺗﺣول اﻟﻣﺧزون إﻟﻰ ﻣﺑﯾﻌﺎت‬

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 Ratio Analysis (cont.)

Activity Ratios ‫ﻧﺳب اﻟﻧﺷﺎط‬

‫ ÷ دوران اﻟﻣﺧزون‬365 = ‫ﻣﺗوﺳط ﻋﻣر اﻟﻣﺧزون‬

Average Age of Inventory = 365 ÷Inventory turnover

For Bartlett Company, the average age of inventory in 2012 is:

365 ÷ 7.2 = 50.7 days :‫ ھو‬2012 ‫ ﻓﺈن ﻣﺗوﺳط ﻋﻣر اﻟﻣﺧزون ﻓﻲ ﻋﺎم‬،‫ﺑﺎﻟﻧﺳﺑﺔ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت‬
‫ ﯾوﻣﺎ‬50.7 = 7.2 ÷ 365
What does that mean? ‫ﻣﺎذا ﯾﻌﻧﻲ ذﻟك؟‬

That means the firm can turn its inventory into sales every 50.7
days. .‫ ﯾوﻣﺎ‬50.7 ‫وھذا ﯾﻌﻧﻲ أن اﻟﺷرﻛﺔ ﯾﻣﻛن أن ﺗﺣول ﻣﺧزوﻧﮭﺎ إﻟﻰ ﻣﺑﯾﻌﺎت ﻛل‬

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 Ratio Analysis (cont.)

Activity Ratios

The average collection period for Bartlett Company in 2012 is:

It means it takes the firm 59.7 days to collect an account receivable.

© 2012 Pearson Prentice Hall. All rights reserved. 3-26
 Matter of Fact

- ‫ﻓﺎﻟﺷرﻛﺎت اﻟﻌﺎﻣﻠﺔ ﻓﻲ ﺻﻧﺎﻋﺎت ﻣواد اﻟﺑﻧﺎء واﻟﺑﻘﺎﻟﺔ وﻣﺗﺎﺟر اﻟﺑﺿﺎﺋﻊ ﺗﺟﻣﻊ ﻓﻲ ﻏﺿون أﯾﺎم‬
.‫ ﻓﻲ ﺣﯾن ﺗﺳﺗﻐرق اﻟﺷرﻛﺎت اﻟﻌﺎﻣﻠﺔ ﻓﻲ ﺻﻧﺎﻋﺔ اﻟﻛﻣﺑﯾوﺗر ﺷﮭرﯾن ﺗﻘرﯾﺑﺎ ﻟﺟﻣﻊ ﻣﺑﯾﻌﺎﺗﮭﺎ‬،‫ﻗﻠﯾﻠﺔ‬

– Companies in the building materials, grocery, and merchandise

store industries collect in just a few days, whereas firms in the
computer industry take roughly two months to collect on their
sales.
– The difference is primarily due to the fact that these industries
serve very different customers.
- ‫اﻟﻔرق ﯾرﺟﻊ ﻓﻲ اﻟﻣﻘﺎم اﻷول إﻟﻰ ﺣﻘﯾﻘﺔ أن ھذه اﻟﺻﻧﺎﻋﺎت ﺗﺧدم ﻋﻣﻼء‬
.‫ﻣﺧﺗﻠﻔﯾن ﺟدا‬

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 Matter of Fact

- ‫ وﯾﺗﻌﯾن ﻋﻠﻰ‬،‫وھذا ﻣﻧطﻘﻲ ﻷن اﻟﻣﺧزون ھو ﻣن ﺑﯾن اﻷﺻول اﻷﻛﺛر ﻗﯾﻣﺔ اﻟﺗﻲ ﺗﺣﺗﻔظ ﺑﮭﺎ ھذه اﻟﺷرﻛﺎت‬
‫ﻣﺣﻼت اﻟﺑﻘﺎﻟﺔ ﺑﯾﻊ اﻟﺳﻠﻊ اﻟﻣﺧﺑوزة وﻣﻧﺗﺟﺎت اﻷﻟﺑﺎن واﻹﻧﺗﺎج ﺑﺳرﻋﺔ أو رﻣﯾﮭﺎ ﺑﻌﯾدا ﻋﻧدﻣﺎ ﺗﻔﺳد‬

– That makes sense because inventory is among the most

valuable assets held by these firms, and grocery stores have to
sell baked goods, dairy products, and produce quickly or throw
them away when they spoil.
– On average, a grocery stores has to replace its entire inventory
in just a few days or weeks, and that contributes to the rapid
turnover of the firms total assets.
‫ وھذا‬، ‫ ﯾﺟب ﻋﻠﻰ ﻣﺣﻼت اﻟﺑﻘﺎﻟﺔ اﺳﺗﺑدال ﻣﺧزوﻧﮭﺎ ﺑﺎﻟﻛﺎﻣل ﻓﻲ ﻏﺿون أﯾﺎم أو أﺳﺎﺑﯾﻊ ﻗﻠﯾﻠﺔ‬، ‫ﻓﻲ اﻟﻣﺗوﺳط‬
.‫ﯾﺳﺎھم ﻓﻲ اﻟدوران اﻟﺳرﯾﻊ ﻹﺟﻣﺎﻟﻲ أﺻول اﻟﺷرﻛﺎت‬

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 Ratio Analysis (cont.)

Activity Ratios

If we assume that Bartlett Company’s purchases equaled 70

percent of its cost of goods sold in 2012, its average payment
period is:

It means it takes the company 95.4 days to pay its suppliers.

© 2012 Pearson Prentice Hall. All rights reserved. 3-29

 Ratio Analysis (cont.)

Activity Ratios
‫إﺟﻣﺎﻟﻲ ﺣﺟم ﻣﺑﯾﻌﺎت اﻷﺻول = إﺟﻣﺎﻟﻲ اﻷﺻول ÷ اﻟﻣﺑﯾﻌﺎت‬

Total asset turnover = Sales ÷Total assets

The value of Bartlett Company’s total asset turnover in 2012 is:

. :‫ ھﻲ‬2012 ‫ﻗﯾﻣﺔ إﺟﻣﺎﻟﻲ ﻣﺑﯾﻌﺎت اﻷﺻول ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻓﻲ ﻋﺎم‬

$3,074,000 ÷$3,597,000 = 0.85 ‫ دوﻻر‬0.85 = ‫ دوﻻر‬3 597 000 ÷ ‫ دوﻻر‬3 074 000

What does it mean? ‫ﻣﺎذا ﺗﻌﻧﻲ؟‬

This means the company turns over its assets 0.85 times per year.
Each dollar invested in total assets will achieve sales of $0.85
‫ دوﻻر‬0.85 ‫ ﻛل دوﻻر ﯾﺳﺗﺛﻣر ﻓﻲ إﺟﻣﺎﻟﻲ اﻷﺻول ﺳﯾﺣﻘق ﻣﺑﯾﻌﺎت ﺑﻘﯾﻣﺔ‬.‫ ﻣرة ﻓﻲ اﻟﺳﻧﺔ‬0.85 ‫وھذا ﯾﻌﻧﻲ أن اﻟﺷرﻛﺔ ﺗﺳﻠم أﺻوﻟﮭﺎ‬

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 Ratio Analysis (cont.)

Debt Ratios: consist of debt ratio and times interest

earned ratio. .‫ ﺗﺗﻛون ﻣن ﻧﺳﺑﺔ اﻟدﯾن وﻧﺳﺑﺔ اﻟﻔﺎﺋدة اﻟﻣﻛﺗﺳﺑﺔ ﻣرات‬:‫ﻧﺳب اﻟدﯾن‬

• Debt ratio: measures the proportion of total assets

financed by the firm’s creditors. ‫ﻘﯾس ﻧﺳﺑﺔ إﺟﻣﺎﻟﻲ اﻟﻣوﺟودات اﻟﺗﻲ ﯾﻣوﻟﮭﺎ‬.‫ﻛﺔﯾ‬:‫ﻧداﺳﺋﺑﻧﺔو ااﻟﻟدﯾﺷرن‬

• Times interest earned ratio: measures the firm’s ability to

make contractual interest payments.
.‫ ﺗﻘﯾس ﻗدرة اﻟﺷرﻛﺔ ﻋﻠﻰ دﻓﻊ اﻟﻔﺎﺋدة اﻟﺗﻌﺎﻗدﯾﺔ‬:‫ﻧﺳﺑﺔ اﻟﻔواﺋد اﻟﻣﻛﺗﺳﺑﺔ‬

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 Ratio Analysis (cont.)

Debt Ratios ‫ﻧﺳب اﻟدﯾن‬

‫ﻧﺳﺑﺔ اﻟدﯾن = إﺟﻣﺎﻟﻲ اﻟﺧﺻوم ÷ إﺟﻣﺎﻟﻲ اﻷﺻول‬

Debt ratio = Total liabilities ÷Total assets

‫ ھﻲ‬2012 ‫ﻧﺳﺑﺔ اﻟدﯾن ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻓﻲ ﻋﺎم‬
The debt ratio for Bartlett Company in 2012 is

$1,643,000 ÷$3,597,000 = 0.457 = 45.7%

٪45.7 = 0.457 = ‫ دوﻻر‬3,597,000 ÷ ‫ دوﻻر‬1,643,000

What does that means?

It means that that the company has financed close to half of its
assets with debt. .‫وھذا ﯾﻌﻧﻲ أن اﻟﺷرﻛﺔ ﻗد ﻣوﻟت ﻣﺎ ﯾﻘرب ﻣن ﻧﺻف أﺻوﻟﮭﺎ ﺑﺎﻟدﯾون‬

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 Ratio Analysis (cont.)

Debt Ratios ‫ = ﻧﺳﺑﺔ اﻟﻔﺎﺋدة اﻟﻣﻛﺗﺳﺑﺔ ﻣرات‬EBIT / ‫اﻟﻔﺎﺋدة‬

Times interest earned ratio = EBIT / INTEREST

The figure for earnings before interest and taxes (EBIT) is the
same as that for operating profits shown in the income statement.
‫( اﻟرﻗم اﻟﺧﺎص ﺑﺎﻷرﺑﺎح ﻗﺑل اﻟﻔواﺋد واﻟﺿراﺋب‬EBIT) ‫ھو ﻧﻔس اﻟرﻗم اﻟﺧﺎص ﺑﺄرﺑﺎح اﻟﺗﺷﻐﯾل اﻟﻣوﺿﺣﺔ ﻓﻲ ﺑﯾﺎن اﻟدﺧل‬

Applying this ratio to Bartlett Company yields the following

2012 value: :2012 ‫ﺗطﺑﯾق ھذه اﻟﻧﺳﺑﺔ ﻋﻠﻰ ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﯾﻌطﻲ اﻟﻘﯾﻣﺔ اﻟﺗﺎﻟﯾﺔ‬

$418,000 ÷$93,000 = 4.5 4.5 = ‫ دوﻻر‬93,000 ÷ ‫ دوﻻر‬418,000

The times interest earned ratio for Bartlett Company seems

acceptable. A value of at least 3.0—and preferably closer to 5.0—
is often suggested. ‫ ﻏﺎﻟﺑﺎ ﻣﺎ ﯾﺗم‬.‫اﻷوﻗﺎت اﻟﻔﺎﺋدة اﻟﻣﻛﺗﺳﺑﺔ ﻧﺳﺑﺔ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﯾﺑدو ﻣﻘﺑوﻻ‬
.5.0 ‫ وﯾﻔﺿل أن ﺗﻛون أﻗرب إﻟﻰ‬- 3.0 ‫اﻗﺗراح ﻗﯾﻣﺔ ﻻ ﺗﻘل ﻋن‬
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 Ratio Analysis (cont.)

fixed-payment coverage ratio measures the firm’s ability to meet all fixed payment
obligations, such as loan interest and principal, lease payments, and preferred
stock dividends. ،‫ ﻣﺛل ﻓواﺋد اﻟﻘروض واﻷﺻل‬،‫ﺗﻘﯾس ﻧﺳﺑﺔ ﺗﻐطﯾﺔ اﻟدﻓﻊ اﻟﺛﺎﺑت ﻗدرة اﻟﺷرﻛﺔ ﻋﻠﻰ اﻟوﻓﺎء ﺑﺟﻣﯾﻊ اﻟﺗزاﻣﺎت اﻟدﻓﻊ اﻟﺛﺎﺑت‬
.‫ وأرﺑﺎح اﻷﺳﮭم اﻟﻣﻔﺿﻠﺔ‬،‫وﻣدﻓوﻋﺎت اﻹﯾﺟﺎر‬

earnings available are nearly twice as large as its fixed-payment obligations,

،‫اﻷرﺑﺎح اﻟﻣﺗﺎﺣﺔ ھﻲ ﺗﻘرﯾﺑﺎ ﺿﻌف اﻟﺗزاﻣﺎﺗﮭﺎ ﺑﺎﻟدﻓﻊ اﻟﺛﺎﺑت‬
the firm appears safely able to meet the latter. .‫اﻟﺷرﻛﺔ ﯾﺑدو ﺑﺄﻣﺎن ﻗﺎدرة ﻋﻠﻰ ﺗﻠﺑﯾﺔ ھذا اﻷﺧﯾر‬

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 Ratio Analysis (cont.)
:‫ ﻗﯾﺎس اﻟرﺑﺣﯾﺔ‬:‫ﻧﺳب اﻟرﺑﺣﯾﺔ‬

Profitability Ratios: measure the profitability:

• Gross Profit Margin
• Operating Profit Margin
‫ھﺎﻣش اﻟرﺑﺢ اﻹﺟﻣﺎﻟﻲ‬
• Net Profit Margin ‫ھﺎﻣش اﻟرﺑﺢ اﻟﺗﺷﻐﯾﻠﻲ‬
‫ﺻﺎﻓﻲ ھﺎﻣش اﻟرﺑﺢ‬
• Earning Per Share (EPS) (EPS) ‫ﻛﺳب اﻟﺳﮭم اﻟواﺣد‬
• Return on Total Assets (ROA) (ROA)‫اﻟﻌﺎﺋد ﻋﻠﻰ إﺟﻣﺎﻟﻲ اﻷﺻول‬
(ROE)‫اﻟﻌﺎﺋد ﻋﻠﻰ إﺟﻣﺎﻟﻲ ﺣﻘوق اﻟﻣﻠﻛﯾﺔ‬
• Return on Total Equity (ROE)

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 Ratio Analysis (cont.)

Profitability Ratios: measure the profitability:

:‫ ھو‬2012 ‫ھﺎﻣش اﻟرﺑﺢ اﻹﺟﻣﺎﻟﻲ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻟﻌﺎم‬

Bartlett Company’s gross profit margin for 2012 is:

The company achieves gross profit of $0.32 for each dollar of

sales. .‫ دوﻻرا أﻣرﯾﻛﯾﺎ ﻟﻛل دوﻻر ﻣن اﻟﻣﺑﯾﻌﺎت‬0.32 ‫ﺗﺣﻘق اﻟﺷرﻛﺔ أرﺑﺎﺣﺎ إﺟﻣﺎﻟﯾﺔ ﻗدرھﺎ‬

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 Ratio Analysis (cont.)

Profitability Ratios ‫ﻧﺳب اﻟرﺑﺣﯾﺔ‬

‫ھﺎﻣش اﻟرﺑﺢ اﻟﺗﺷﻐﯾﻠﻲ = أرﺑﺎح اﻟﺗﺷﻐﯾل ÷ اﻟﻣﺑﯾﻌﺎت‬

Operating profit margin = Operating profits ÷ sales

:‫ ھو‬2012 ‫ھﺎﻣش اﻟرﺑﺢ اﻟﺗﺷﻐﯾﻠﻲ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻟﻌﺎم‬
Bartlett Company’s operating profit margin for 2012 is:

$418,000 ÷$3,074,000 = 13.6% ٪13.6 = ‫ دوﻻر‬3,074,000 ÷ ‫ دوﻻر‬418,000

The company achieves operating profit of $0.13 for each

dollar of sales. .‫ دوﻻرا أﻣرﯾﻛﯾﺎ ﻟﻛل دوﻻر ﻣن اﻟﻣﺑﯾﻌﺎت‬0.13 ‫ﺗﺣﻘق اﻟﺷرﻛﺔ أرﺑﺎﺣﺎ ﺗﺷﻐﯾﻠﯾﺔ ﻗدرھﺎ‬

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 Ratio Analysis (cont.)

Profitability Ratios
‫ھﺎﻣش اﻟرﺑﺢ اﻟﺻﺎﻓﻲ = اﻷرﺑﺎح اﻟﻣﺗﺎﺣﺔ ﻟﺣﺎﻣﻠﻲ اﻷﺳﮭم اﻟﻌﺎدﯾﺔ ÷ اﻟﻣﺑﯾﻌﺎت‬

Net profit margin = Earnings available for common

stockholders ÷Sales
:‫ ھو‬2012 ‫ھﺎﻣش اﻟرﺑﺢ اﻟﺻﺎﻓﻲ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻟﻌﺎم‬
Bartlett Company’s net profit margin for 2012 is:
٪7.2 = 0.072 = ‫ دوﻻر‬3,074,000 ÷ ‫ دوﻻر‬221,000

$221,000 ÷$3,074,000 = 0.072 = 7.2%

The company achieves net profit of $0.07 for each dollar of sales.
.‫ دوﻻر ﻟﻛل دوﻻر ﻣن اﻟﻣﺑﯾﻌﺎت‬0.07 ‫ﺗﺣﻘق اﻟﺷرﻛﺔ أرﺑﺎﺣﺎ ﺻﺎﻓﯾﺔ ﻗدرھﺎ‬

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 Ratio Analysis (cont.)

Profitability Ratios

‫(أرﺑﺎح ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻟﻠﺳﮭم اﻟواﺣد‬EPS) :‫ ھﻲ‬2012 ‫ﻓﻲ ﻋﺎم‬

Bartlett Company’s earnings per share (EPS) in 2012 is:

$221,000 ÷76,262 = $2.90 ‫ دوﻻر‬2.90 = ‫ دوﻻر‬76,262 ÷ ‫ دوﻻر‬221,000

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 Ratio Analysis (cont.)

Profitability Ratios
‫(اﻟﻌﺎﺋد ﻋﻠﻰ إﺟﻣﺎﻟﻲ اﻷﺻول‬ROA) = ‫اﻷرﺑﺎح اﻟﻣﺗﺎﺣﺔ ﻟﺣﺎﻣﻠﻲ اﻷﺳﮭم اﻟﻌﺎدﯾﺔ ÷ إﺟﻣﺎﻟﻲ اﻷﺻول‬

Return on total assets (ROA) = Earnings available for common

stockholders ÷Total assets
:‫ ھو‬2012 ‫اﻟﻌﺎﺋد ﻣن ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻋﻠﻰ إﺟﻣﺎﻟﻲ اﻷﺻول ﻓﻲ ﻋﺎم‬

Bartlett Company’s return on total assets in 2012 is:

٪6.1 = 0.061 = ‫ دوﻻر‬3,597,000 ÷ ‫ دوﻻر‬221,000

$221,000 ÷$3,597,000 = 0.061 = 6.1%

The company achieves net profit of $0.061 for each dollar
invested in assets. .‫ دوﻻر ﻋن ﻛل دوﻻر ﯾﺗم اﺳﺗﺛﻣﺎره ﻓﻲ اﻷﺻول‬0.061 ‫وﺗﺣﻘق اﻟﺷرﻛﺔ أرﺑﺎﺣﺎ ﺻﺎﻓﯾﺔ ﻗدرھﺎ‬

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 DuPont system of analysis ‫دوﺑوﻧت ﻧظﺎم اﻟﺗﺣﻠﯾل‬

ROA = Net profit margin * Total asset turnover

ROA = ‫ھﺎﻣش اﻟرﺑﺢ اﻟﺻﺎﻓﻲ * إﺟﻣﺎﻟﻲ دوران اﻷﺻول‬

ROA = 7.2% * 0.85 = 6.1%

.‫ ﺳﻧت ﻋﻠﻰ ﻛل دوﻻر ﻣن اﻻﺳﺗﺛﻣﺎر ﻓﻲ اﻷﺻول‬6.1 ‫وﺗﺷﯾر ھذه اﻟﻘﯾﻣﺔ إﻟﻰ أن اﻟﺷرﻛﺔ ﻛﺳﺑت‬
This value indicates that the company earned 6.1 cents on each
dollar of asset investment. ‫ﺗﻣﻛن ﺻﯾﻐﺔ دوﺑوﻧت اﻟﺷرﻛﺔ ﻣن ﺗﻘﺳﯾم ﻋﺎﺋدھﺎ إﻟﻰ اﻟرﺑﺢ ﻋﻠﻰ اﻟﻣﺑﯾﻌﺎت )ھﺎﻣش‬
(‫ وﻣﻛوﻧﺎت ﻛﻔﺎءة اﺳﺗﺧدام اﻷﺻول )إﺟﻣﺎﻟﻲ دوران اﻷﺻول‬، (‫اﻟرﺑﺢ اﻟﺻﺎﻓﻲ‬
The DuPont formula enables the firm to break down its return into
profit-on-sales (net profit margin),and efficiency-of-asset-use
components (total asset turnover)

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 Ratio Analysis (cont.)

Profitability Ratios
‫(اﻟﻌﺎﺋد ﻋﻠﻰ ﺣﻘوق اﻟﻣﺳﺎھﻣﯾن‬ROE) = ‫اﻷرﺑﺎح اﻟﻣﺗﺎﺣﺔ ﻟﺣﺎﻣﻠﻲ اﻷﺳﮭم اﻟﻌﺎدﯾﺔ ÷ أﺳﮭم ﻋﺎدﯾﺔ‬
Return on Equity (ROE) = Earnings available for common
stockholders ÷Common stock equity

This ratio for Bartlett Company in 2012 is:

$221,000 ÷$1,754,000 = 0.126 = 12.6%

The company achieves net profit of $0.126 for each dollar from
the stockholders. .‫ دوﻻر ﻋن ﻛل دوﻻر ﻣن ﺣﻣﻠﺔ اﻷﺳﮭم‬0.126 ‫وﺗﺣﻘق اﻟﺷرﻛﺔ أرﺑﺎﺣﺎ ﺻﺎﻓﯾﺔ ﻗدرھﺎ‬

© 2012 Pearson Prentice Hall. All rights reserved. 3-42

 DuPont system of analysis

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 Ratio Analysis (cont.)

Market Ratios: give insight into how investors in

the marketplace feel the firm is doing:
:‫ إﻋطﺎء ﻧظرة ﺛﺎﻗﺑﺔ ﻛﯾف ﯾﺷﻌر اﻟﻣﺳﺗﺛﻣرون ﻓﻲ اﻟﺳوق أن اﻟﺷرﻛﺔ ﺗﻘوم ﺑﻣﺎ ﯾﻠﻲ‬:‫ﻧﺳب اﻟﺳوق‬

• Price/Earnings (P/E) Ratio

• Market/Book (M/B) Ratio

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 Ratio Analysis (cont.)

Market Ratios ‫ﻧﺳب اﻟﺳوق‬

‫(ﻧﺳﺑﺔ أرﺑﺎح اﻷﺳﻌﺎر‬P/E) = ‫ﺳﻌر اﻟﺳوق ﻟﻠﺳﮭم اﻟواﺣد ﻣن اﻷﺳﮭم اﻟﻌﺎدﯾﺔ ÷ أرﺑﺎح اﻟﺳﮭم اﻟواﺣد‬
Price Earnings (P/E) Ratio = Market price per share of common
stock ÷Earnings per share

If Bartlett Company’s common stock at the end of 2012 was

selling at $32.25, using the EPS of $2.90, the P/E ratio at
year-end 2012 is: ،‫ دوﻻر‬32.25 ‫ ﯾﺑﺎع ﺑﺳﻌر‬2012 ‫إذا ﻛﺎن اﻟﺳﮭم اﻟﻌﺎدي ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻓﻲ ﻧﮭﺎﯾﺔ ﻋﺎم‬
‫ﺑﺎﺳﺗﺧدام‬EPS ‫ ﻓﺈن ﻧﺳﺑﺔ‬،‫ دوﻻر‬2.90 ‫اﻟﺑﺎﻟﻎ‬P/E :‫ ھﻲ‬2012 ‫ﻓﻲ ﻧﮭﺎﯾﺔ اﻟﻌﺎم‬

$32.25 ÷$2.90 = 11.1

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 Ratio Analysis (cont.)

Market Ratios

where,

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 Ratio Analysis (cont.)

Substituting the appropriate values for Bartlett Company from its 2012
balance sheet, we get: :‫ ﻧﺣﺻل ﻋﻠﻰ‬،2012 ‫اﺳﺗﺑدال اﻟﻘﯾم اﻟﻣﻧﺎﺳﺑﺔ ﻟﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻣن ﻣﯾزاﻧﯾﺗﮭﺎ اﻟﻌﻣوﻣﯾﺔ ﻟﻌﺎم‬

Substituting Bartlett Company’s end of 2012 common stock price of

$32.25 and its $23.00 book value per share of common stock
(calculated above) into the M/B ratio formula, we get:
‫ ﻟﻠﺳﮭم اﻟواﺣد ﻣن اﻷﺳﮭم‬23.00$ ‫ وﻗﯾﻣﺗﮭﺎ اﻟدﻓﺗرﯾﺔ‬32.25$ ‫ ﺳﻌر اﻟﺳﮭم اﻟﻌﺎدي ﻣن‬2012 ‫اﺳﺗﺑدال ﻧﮭﺎﯾﺔ ﺷرﻛﺔ ﺑﺎرﺗﻠﯾت ﻣن‬
‫اﻟﻌﺎدﯾﺔ )ﻣﺣﺳوﺑﺔ أﻋﻼه( ﻓﻲ ﺻﯾﻐﺔ ﻧﺳﺑﺔ‬M/B, :‫ﻧﺣﺻل ﻋﻠﻰ‬
$32.25 ÷$23.00 = 1.40

© 2012 Pearson Prentice Hall. All rights reserved. 3-47

 Table 3.8a Summary of
Bartlett Company Ratios

© 2012 Pearson Prentice Hall. All rights reserved. 3-48

 Table 3.8b Summary of
Bartlett Company Ratios

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 SUMMARIZING ALL RATIOS

Liquidity ‫اﻟﺳﯾوﻟﮫ‬
.‫ ﺳﯾوﻟﺔ اﻟﺷرﻛﺔ ﺗﺑدو ﺟﯾدة‬.‫وﯾﺑدو أن اﻟﺳﯾوﻟﺔ اﻹﺟﻣﺎﻟﯾﺔ ﻟﻠﺷرﻛﺔ ﺗظﮭر اﺗﺟﺎھﺎ ﻣﺳﺗﻘرا إﻟﻰ ﺣد ﻣﻌﻘول‬
The overall liquidity of the firm seems to exhibit a reasonably stable trend. The firm’s
liquidity seems to be good.
Activity ‫ﻧﺷﺎط‬ .‫ ﻛﺎن أداؤھﺎ أﻋﻠﻰ ﻣن ﻣﺳﺗوى اﻟﺻﻧﺎﻋﺔ‬2012 ‫ وﻓﻲ ﻋﺎم‬،‫وﯾﺑدو أن إدارة اﻟﻣﺧزون ﻗد ﺗﺣﺳﻧت‬

inventory management seems to have improved, and in 2012 it performed at a level above
that of the industry. ‫ ﺑﺎرﺗﻠﯾت ﯾﺑدو أﯾﺿﺎ أن ﺗﻛون‬.‫وﯾﺑدو أن ﻣﺗوﺳط ﻓﺗرة اﻟﺗﺣﺻﯾل ﻗد ﺗﺳﻠل ﻓوق ﻣﺗوﺳط ﻓﺗرة اﻟﺗﺣﺻﯾل ﻓﻲ ھذه اﻟﺻﻧﺎﻋﺔ‬
.‫ﺑطﯾﺋﺔ ﻓﻲ دﻓﻊ ﻓواﺗﯾرھﺎ‬
The average collection period seems to have crept up above that of the industry. Bartlett
also appears to be slow in paying its bills.
.‫ ﻟﻛﻧﮫ ﻻ ﯾزال أﻋﻠﻰ ﻣن اﻟﺻﻧﺎﻋﺔ‬،2011‫ و‬2010 ‫ﯾﻌﻛس إﺟﻣﺎﻟﻲ ﺣﺟم ﻣﺑﯾﻌﺎت اﻷﺻول ﻓﻲ ﺑﺎرﺗﻠﯾت اﻧﺧﻔﺎﺿﺎ ﺑﯾن ﻋﺎﻣﻲ‬
Bartlett’s total asset turnover reflects a decline between 2010 and 2011, but it is still above
the industry.
Debt ‫دﯾن‬ ‫ إﻻ أن ﺗﺣﺳن ﻗدرة اﻟﺷرﻛﺔ ﻋﻠﻰ ﺳداد اﻟدﯾون ﻓﻲ‬،‫ ﻛﺎن ﻋﺎﻣﺎ ﻏﯾر رﺳﻣﻲ‬2011 ‫وﯾﺑدو أﻧﮫ ﻋﻠﻰ اﻟرﻏم ﻣن أن ﻋﺎم‬
.‫ ﯾﻌوض ﻋن ارﺗﻔﺎع درﺟﺔ ﻣدﯾوﻧﯾﺗﮭﺎ‬2012 ‫ﻋﺎم‬
it appears that although 2011 was an off year, the company’s improved ability to pay debts in
2012 compensates for its increased degree of indebtedness.

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 SUMMARIZING ALL RATIOS

Profitability ‫اﻟرﺑﺣﯾﮫ‬ ‫ ﻋﻠﻰ‬، ‫ أﻓﺿل ﻣن اﻟﺷرﻛﺔ اﻟﻣﺗوﺳطﺔ ﻓﻲ ھذه اﻟﺻﻧﺎﻋﺔ‬2012 ‫ﻛﺎﻧت رﺑﺣﯾﺔ ﺑﺎرﺗﻠﯾت ﺑﺎﻟﻧﺳﺑﺔ ﻟﻠﻣﺑﯾﻌﺎت ﻓﻲ ﻋﺎم‬
.2010 ‫اﻟرﻏم ﻣن أﻧﮭﺎ ﻟم ﺗﺗطﺎﺑق ﻣﻊ أداء اﻟﺷرﻛﺔ ﻓﻲ ﻋﺎم‬
Bartlett’s profitability relative to sales in 2012 was better than the average company in the
industry, although it did not match the firm’s 2010 performance.
Market ‫ﺳوق‬
‫وھذا ﯾﻌﻧﻲ أن اﻟﻣﺳﺗﺛﻣرﯾن ﻣﺗﻔﺎﺋﻠون ﺑﺷﺄن ﻣﺳﺗﻘﺑل اﻟﺷرﻛﺔ‬
This implies that investors are optimistic about the firm’s future
‫ ﺗﻌﻛس ﻧﺳب‬.‫اداء‬P/E ‫و‬M/B ‫زﯾﺎدة رﺑﺣﯾﺔ اﻟﺷرﻛﺔ‬
performance. The P/E and M/B ratios reflect the firm’s increased profitability
.2012-2010 ‫ﺧﻼل اﻟﻔﺗرة‬
over the 2010–2012 period. ‫ ﯾﺑدو أن ﻣﺑﯾﻌﺎت ﺑﺎرﺗﻠﯾت‬.‫ ﺑﺗﻣوﯾل ﻣن اﻟدﯾون‬،‫ ﺷﮭدت اﻟﺷرﻛﺔ ﺗوﺳﻌﺎ ﻓﻲ اﻷﺻول‬،‫وﺑﺎﺧﺗﺻﺎر‬
‫ ﯾﺑدو أن‬،‫ وﺑﺎﻹﺿﺎﻓﺔ إﻟﻰ ذﻟك‬.‫وأرﺑﺎﺣﮫ وﻋواﻣل اﻷداء اﻷﺧرى ﺗﻧﻣو ﻣﻊ اﻟزﯾﺎدة ﻓﻲ ﺣﺟم اﻟﻌﻣﻠﯾﺔ‬
Overall ‫اﻟﻌﺎم‬ ‫ ﯾﺑدو أن اﻟﺷرﻛﺔ ﻗد أﺑﻠت ﺑﻼء ﺣﺳﻧﺎ ﻓﻲ‬،‫ وﺑﺎﺧﺗﺻﺎر‬.‫اﺳﺗﺟﺎﺑﺔ اﻟﺳوق ﻟﮭذه اﻹﻧﺟﺎزات ﻛﺎﻧت إﯾﺟﺎﺑﯾﺔ‬
.2012 ‫ﻋﺎم‬
In summary, the firm has undergone an expansion in assets, financed by debt. Bartlett’s
sales, profits, and other performance factors seem to be growing with the increase in the
size of the operation. In addition, the market response to these accomplishments appears to
have been positive. In short, the firm seems to have done well in 2012.

© 2012 Pearson Prentice Hall. All rights reserved.

Fatimah J 3-51
 Review of Learning Goals (cont.)

LG1 Understand who uses financial ratios and how.

– Ratio analysis enables stockholders, lenders, and the firm’s managers to
evaluate the firm’s financial performance. It can be performed on a
cross-sectional or a time-series basis. Benchmarking is a popular type of
cross-sectional analysis. Users of ratios should understand the cautions
that apply to their use.
LG2 Use ratios to analyze a firm’s liquidity and activity.
– Liquidity, or the ability of the firm to pay its bills as they come due, can
be measured by the current ratio and the quick (acid-test) ratio. Activity
ratios measure the speed with which accounts are converted into sales or
cash—inflows or outflows. The activity of inventory can be measured
by its turnover, that of accounts receivable by the average collection
period and that of accounts payable by the average payment period.
Total asset turnover measures the efficiency with which the firm uses its
assets to generate sales.

© 2012 Pearson Prentice Hall. All rights reserved. 3-52

 Review of Learning Goals (cont.)

LG3 Discuss the relationship between debt and financial

leverage and the ratios used to analyze a firm’s debt.
– The more debt a firm uses, the greater its financial leverage, which
magnifies both risk and return. A common measure of indebtedness is
the debt ratio. The ability to pay fixed charges can be measured by
times interest earned and fixed-payment coverage ratios.
LG4 Use ratios to analyze a firm’s profitability and its market
value.
– The common-size income statement, which shows all items as a
percentage of sales, can be used to determine gross profit margin,
operating profit margin, and net profit margin. Other measures of
profitability include earnings per share, return on total assets, and
return on common equity. Market ratios include the price/earnings
ratio and the market/book ratio.

© 2012 Pearson Prentice Hall. All rights reserved. 3-53