Slides by

1
Principles of Corporate Finance Brealey and Myers
Sixth Edition

• Financial Analysis and Planning

• Slides by
• Matthew Will

Chapter 28

• The McGraw-Hill Companies, Inc., 2000

Irwin/McGraw Hill
2
Topics Covered

• Executive Paper Corporation
• Financial Ratios
• The DuPont System
• Financial Planning
• Growth and External Financing

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Executive Paper
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Executive Paper
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Executive Paper
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Executive Paper
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Executive Paper
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Leverage Ratios
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Leverage Ratios
total liabilities
Total debt
ratio

total assets
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Liquidity Ratios
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Liquidity Ratios
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Efficiency Ratios
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Efficiency Ratios
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Profitability Ratios
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Profitability Ratios
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Market Value Ratios
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Market Value Ratios
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The DuPont System

• A breakdown of ROE and ROA into component ratios

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The DuPont System
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The DuPont System
asset turnover
profit margin
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The DuPont System
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The DuPont System
leverage ratio
asset turnover
profit margin
debt burden