Instructions
FinSAS Version 20111028
FinSAS: Financial Statement Analysis Spreadsheet
by
Dr. Donald V. Saftner
[email protected]
To Accompany
Financial Reporting and Analysis:
Using Financial Accounting Information
13/e
by Dr. Charles Gibson
Copyright © 2013 Cengage Learning
All rights reserved
FinSAS: Financial Statement Analysis Spreadsheet allows users to input the reported data from the financial statements, notes, and other sources. FinSAS then computes the ratios found in Financial Reporting and Analysis: Using Financial Accounting Information 13/e. Using this tool, you can spend more time analyzing the statements and less time crunching the numbers. In addition to the ratios, both a vertical and horizontal analysis are performed.
Instructions:
Note the sheet tabs below. The following instructions use the names of those tabs as section headings. Click on a tab to see that sheet after reading the instructions below.
Input
On the Input sheet, enter values into all appropriate cells (i.e., those with blue font). The figures in black font are calculated based on your input. By entering the Company Name, Analyst Name(s), and Most Recent Year Available in the first three input cells, those items will appear on all subsequent output sheets. They make it easy to identify any printouts you make.
The next two input cells (Years Available for Income Statement and Balance Sheet) are particularly important to the functioning of the model. Changing these numbers (while keeping them within the range one through five) changes the number of columns of data that are available on the Input sheet and all subsequent output sheets. In a single annual report/10K, there are often three years of income statements and two years of balance sheets. The annual report/10K you are using may have more and/or you may want to use multiple years’ worth of annual report/10Ks to increase the amount of data available to analyze. The maximum years that FinSAS can accept is five years.
Fill in all remaining input cells for which you can find data. There are many different names for the same account. You must translate the terminology used by the company to the generic terms used in FinSAS. When the detail is not needed, FinSAS requests a summary figure. For instance, on the published income statement there may be several operating expenses (e.g., wages, utilities, rent), but FinSAS only needs the sum of those, which would be entered as Operating Expenses. Be sure to read the footnotes to the financial statements and the comparative data section. Those sources include some of the information you need to complete the Input sheet. Also be sure to match key subtotals (e.g. the FinSAS total current asset should be same as the figure on the balance sheet even though the detail lines may be different.)
Be consistent in ignoring a certain number of decimal places. Many financial statements have "in thousands, except par values," "millions except share and per share amounts," or similar statements. When entering data into FinSAS, it is usually best to follow the same convention as the financial statements in choosing the number of decimal places to assume have been removed. An exception is the second statement above. Only "per share" data should be entered as dollars with no decimal places removed. Account balances and total share information should consistently have the same number of decimal places removed. If the share and account balances have a different number of decimal places removed then ratios such as "book value per share" and "operating cash flow per share" will be inaccurate.
Source of Input
This is the place to document where you found the information you entered on the previous sheet. This can be very useful for you and for anyone who reviews your work. For instance if most of it came from the company's annual report/10K, then state that at the top. Individual lines of input in FinSAS might be the sum of a few lines in the published financial statements. Indicate on this sheet how you determined the FinSAS inputs from the statements. For some of the inputs, you may have used information from the footnotes or comparative information section. Indicate that information on this sheet and include page numbers wherever possible. Of course, other sources of information should be cited.
Vertical Analysis
After you insert your data, you can see the result of the vertical analysis. It compares each amount on the income statement and balance sheet with a base amount (net sales on the income statement and total assets on the balance sheet) selected from the same year.
Horizontal Analysis
After you insert your data, you can see the result of the horizontal analysis. It compares each amount on the income statement and balance sheet with the same amount for the oldest year available.
Ratios – avg.
After you insert your data, you can see the result of the ratio analysis. For the ‘Ratio – Average’, the average of beginning of year values and end of year values is used when appropriate. Note that if you only have two years of balance sheet information, then for those ratios that use the average of two years of balance sheet information, only one year's worth of ratios can be calculated. Since it is desirable to compare the ratios across time to determine possible trends, a solution to only having one year's worth of ratios should be sought. Some possible solutions are to find additional years' worth of data and/or use the Ratio - end. sheet.
Ratios with a negative cash flow or negative profit measure in the numerator will display #N/A, which means not available or not applicable. This makes it less likely that invalid conclusions will be made during your analysis.
You may want to determine how a certain ratio is calculated. You may do this in one of two ways. If you select the cell in which the ratio appears, then the formula for that cell appears near the top of the screen. You will then have to determine what accounts the cell refers to by looking at the Input screen. Alternatively, you can refer to the Documentation screen for the definition.
Ratios – end.
For the ‘Ratio – End’, the end of year values are used instead of the average values. The ‘*’ marks indicate the ratios for which the end of year values are used whereas the averages are used on the previous sheet.
For the Ratios - end. sheet, the end of year values are used instead of the average values. The ‘*’ marks indicate the ratios for which the end of year values are used whereas the averages are used on the previous sheet. Note that the Ratios - avg. sheet is theoretically superior in that averages for balance sheet information (point in time) is compared to income statement or cash flow statements (period of time).
Documentation
The Documentation sheet provides you the definitions of the ratios using the row labels of the Input sheet or other ratio results.
&CCopyright © 2013 Cengage Learning
[email protected]Input
1 2 3 4 5
FinSAS Version 20111028 Input
Company: Macys Inc
Analyst: Your name(s) here
Most Recent Year Available: 2018
Years Available for:
Income Statement (1-5) 5
Balance Sheet (1-5) 5
= = = = = =
INCOME STATEMENT 2018 2017 2016 2015 2014
- - - - - -
Net Sales 24971 24939 25908 27079 28105
Less: Cost of Goods Sold 15215 15181 15666 16496 16863
- - - - -
Gross Profit 9756 9758 10242 10583 11242
Other Operating Revenue 768 702 656 0 0
Less: Operating Expenses 8786 8596 9527 8544 8442
- - - - -
Operating Income 1738 1864 1371 2039 2800
Less: Interest Expense 261 321 367 361 393
(no capitalized interest)
Other Income (Expenses) -57 -27 -39 0 -17
Unusual or Infreq. Item;
Gain (Loss) 0 0 0 0 0
Equity in Earnings of Assoc.;
Profit (Loss) 0 0 0 0 0
- - - - -
Income before Taxes 1420 1516 965 1678 2390
Less:Taxes Related to Operations 322 -39 346 608 864
- - - - -
N.I. before Noncontr. Inc 1098 1555 619 1070 1526
Noncontrolling income (loss) 10 11 8 2 0
- - - - -
N.I. before Nonrecurring Items 1108 1566 627 1072 1526
Oper. of Discontinued Segment;
Income (Loss) 0 0 0 0 0
Disposal of Discont. Segment;
Gain (Loss) 0 0 0 0 0
Extraordinary Item;
Gain (Loss) 0 0 0 0 0
Cum. Effect of Acct Change;
Gain (Loss) 0 0 0 0 0
- - - - -
Net Income (Loss) 1108 1566 627 1072 1526
= = = = = =
BALANCE SHEET 2018 2017 2016 2015 2014
- - - - - -
ASSETS
Current Assets:
Cash 1162 1455 1297 1109 2246
Marketable Securities 0 0 0 0 0
Gross Receivables 400 363 522 558 424
Less: Allowance for Bad Debts 0 0 0 0 0
Net Trade Receivables 400 363 522 558 424
Inventories 5263 5178 5399 5506 5417
Prepaid Expenses 620 650 408 479 493
Other Current Assets 0 0 0 0 0
- - - - -
Total Current Assets 7445 7646 7626 7652 8580
Long-Term Assets:
Net Tangible (Fixed) Assets (other than construction in progress) 6637 6672 7017 7616 7800
Construction in Progress 0 0 0 0 0
Intangible Assets 4386 4385 4395 4411 4239
Investments 0 0 0 0 0
Other Nonoperating Assets 0 0 0 0 0
Other Operating Assets 726 880 813 897 711
- - - - -
Total Long-Term Assets 11749 11937 12225 12924 12750
Total Assets 19194 19583 19851 20576 21330
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable 5021 4861 4986 4859 4703
Short Term Loans 43 22 309 642 76
Current Maturity of L.t. Debt 0 0 0 0 0
Other Current Liabilities 168 296 352 227 296
- - - - -
Total Current Liabilities 5232 5179 5647 5728 5075
Long-Term Liabilities:
Long-term Debt 4708 5861 6562 6995 7233
Reserves 0 0 0 0 0
Deferred Liabilities 1238 1148 1443 1477 1443
Noncontrolling Interest 0 -12 -1 3 0
Redeemable Preferred 0 0 0 0 0
Other Long-term Liabilities 1580 1662 1877 2123 2201
- - - - -
Total Long-term Liabilities 7526 8659 9881 10598 10877
Total Liabilities 12758 13838 15528 16326 15952
Shareholders' Equity:
Preferred Equity 0 0 0 0 0
Common Equity-incl. Ret. Ern. 6436 5745 4323 4250 5378
- - - - -
Total Equity 6436 5745 4323 4250 5378
Total Liabilities and Equity 19194 19583 19851 20576 21330
= = = = = =
OTHER DATA 2018 2017 2016 2015 2014
- - - - - -
Capitalized Interest 10.0 11.0 10.0 17.0 13.0
Interest Portion of Rentals 0.0 0.0 0.0 0.0 0.0
Liquidation Value of Pref. Stock 0.0 0.0 0.0 0.0 0.0
Dividends on Redeemable Pref. 0.0 0.0 0.0 0.0 0.0
Dividends on Nonredeemable Pref. 0.0 0.0 0.0 0.0 0.0
Dividends per Common Share 1.510 1.510 1.493 1.393 1.188
Total Cash Dividends 463.0 461.0 459.0 456.0 421.0
Dil. Earn. per Sh. before Nonrec. Items 3.560 5.100 2.020 3.220 4.220
Market Price per Common Share 25.730 24.890 29.110 40.410 63.880
Tax Rate...