financial statements and ratio analysis

108 Pages·2015·2.18 MB·English

F S
INANCIAL TATEMENTS
R A
AND ATIO NALYSIS
Jeff Goolsby, Shareholder, CPA, MSA

Moore Stephens Lovelace, P.A.
1
O S
VERVIEW OF THE ESSION
A Provide information on how ratios can provide insight

into financial statements
B Give information about key ratios and what the data

can tell you
C Provide insight into what management should focus

on in understanding numbers
D Clarify when ratios are not helpful

E Overview ready to access ratios available for Florida

Government’s
2
T F/S M –
RADITIONAL EASURES
B S
ALANCE HEET
Cash Payables and Accruals
• •
Accounts Receivable Current portion of Debt
• •
Inventory Current Liabilities
• •
Investments Long-Term Debt
• •
Current Assets Total Liabilities
• •
Total Assets Retained Earnings
• •
Total Equity
•

3
T F/S M –
RADITIONAL EASURES
O S
THER TATEMENTS
Income Statement Cash Flows
Revenue Cash flows from
• •
operations, investing,
Costs of Goods Sold
•
and financing
Gross Margin
•
Net change in cash
•
Other Expenses
•
Activity of PPE,
•
Operating Income
•
Investments, Debt, and
Net Income
•
Equity

4
U G M –
NIQUE OVERNMENTAL EASURES
A S
LL TATEMENTS
Deferred outflows of Nonspendable fund
• •
resources balance
Deferred inflows of Intergovernmental
• •
resources revenues
Net investments in capital Cash flows form noncapital
• •
assets financing activates
Unrestricted Net Position / Cash flows from capital
• •
unassigned fund balance and related financing
activities
Restricted Net Position /
•
assigned fund balance

5
W N D ’ A U
HEN THE UMBERS ON T DD P
6
V I
ALUE OF NFORMATION
Gives reader understanding of:

the size of organization and its activities
•
composition of resources and liabilities
•
results of operations and impacts on cash
•
Generally comparative allowing easy comparison

to prior year
Generally governmental statements are single year
•
Footnotes contain detailed information

MD&A can provide insight into reasons
•

7
S U
TATEMENT SERS
Creditors

Bondholders

Owners

The Market

Potential Buyers / Investors

Competitors

Management

Citizens


8
U F – T P
SER OCUS HIRD ARTIES
Liquidity of an entity and its ability to make interest

and principal payments

Long-term cash flow of the entity as well as the

entities future level of risk and return, which
impacts return on investment

Ability to provide dividends (public co’s)


Operational results for comparative purposes

9
U F – M
SER OCUS ANAGEMENT
Liquidity of an entity and its ability to make interest

and principal payments

Planning – Assessing current financial position and

evaluating potential opportunities

Asset Management – Use of assets for efficiency

and best return on investment

Understanding – How external parties analyze the

entity
10