MBA Accounting

Under this heading of Interpretation of financial statements, it is a pre-requisite for any MBA student to have the ability to interpret what’s in the financial statement of a company, hence the need  to understand some important financial accounting ratio.

Append below are a list of all articles on interpretation of the financial statement of a company:

PART A:FINANCIAL ACCOUNTING RATIO ANALYSIS OF A COMPANY:

Financial Accounting Ratio Analysis-Commonly or Frequently Asked Questions

Financial Accounting Ratio Analysis- The Common Size Financial Statements As A Tool Used In Ratio Analysis

Financial Accounting Ratio Analysis-Principal Tools Used In The Analysis Of Financial Statements

Financial Accounting Ratio Analysis-Guides To The Analyzing of The Financial Statements

ANNUAL REPORT:

Assessing The Quality Of Management

Assessing The Quality of Earnings

Financial Ratio Analysis-The Market Valued Added (MVA)

Financial Ratio Analysis-The Market To Book Ratio

Financial Ratio Analysis-Sources Of Information Available

Financial Ratio Analysis- The Defensive Interval Ratio

Financial Ratio Analysis-Assessing the LIQUIDITY of a company

Financial Ratio Analysis-Assessing the PROFITABILITY of a company

Financial Ratio Analysis-Assessing The ACTIVITY of assets utilised of a company

Financial Ratio Analysis-Assessing the LEVERAGE OR GEARING of a company

Financial Ratio Analysis-Assessing the MARKET VALUE of a company

Financial Ratio Analysis-ALTMAN Z SYSTEM to forecast BANKRUPTCY of a company.

Price Earning Ratio-Is It A Useful Ratio To Understand?

Financial Accounting Ratio Analysis-Which Ratios have the Value?

USEFUL TIPS ON THE INTERPRETATION OF FINANCIAL STATEMENTS:
 
How To Spot Companies Which Are Likely To Issue Bonus Issue.
 
How To Spot Undervaluation in The Notes To The Financial Statements (Part 1 of 2)
 
How To Spot Undervaluation in The Notes To The Financial Statements (Part 2 of 2)
 

WHAT IS IN THE ANNUAL REPORT/FINANCIAL STATEMENTS?
 
Financial Accounting Ratio Analysis-What Is In The Annual Report
 
Financial Accounting Ratio Analysis-Reading The Chairman Report
 
The Chairman’s Statement In The Annual Report
 
Reading The Directors’ Profile In The Annual Report
 
Notes To The Financial Statement-Related Parties
 
Notes To The Financial Statement-Income Tax
 
DUPONT SYSTEM:
 
Dupont System-An Overview Of ROA & ROE

Dupont System-A Matter Of Leverage Or Is It Financial Efficiency
 
OTHERS:
 
What are Growth Companies?
 
What is Overtrading- Definition, Causes, Consequences And Remedy
 
Air Asia Bhd –Substance Over Form
 
What Is Secret Reserve
 
Financial Accounting Ratio Analysis- Understand What Is Free Cash Flow
 
Competitive Analysis Using Financial Accounting Ratio Analysis
 
Financial Accounting Ratio Analysis- What Other Factors Beyong Ratios That Needs To Be Considered
 
Financial Accounting Ratio Analysis- Basic Understanding of existing and potential net tangible assets basis (NTA)
 
GEARING-Its Determinants & Advantages and Disadvantages

Normally, defensive internal or burn rate ratio is quite crucial to a start up company like the internet business.Most of the time, the start up companies are funded by venture capitalist. Their products might still need a lot of development before reaching the marketability state.  (more…)

Investors and analysts will normally deploy one particular  market base accounting ratio which is the Market to Book ratio.

This ratio expresses the relationship between a company’s value in the stock market and the net asset value as per the company’s balance sheet. (more…)

Let’s look at another useful market based ratio which is known as the Market value added ( MVA).

MVA is the difference between the market value of the company and the total capital invested in the company. (more…)

In earlier articles we have gone through many ratios to assess the liquidity, profitability, market based ratio, activity of asset utilised,gearing level and cash sufficiency of a company.

There is a very interesting ratio which can assist the managers to predict the probability of a company entering bankruptcy within a 2 year period.
That ratio is the Altman Z System. This powerful diagnostic tool uses almost the same type of financial ratio we used. (more…)

[GO TO THE MAIN PAGE FOR ALL ARTICLES ON CASH FLOW]

In Part A, we have looked at Cash sufficiency Financial ratio, let’s look at another cash flow ratio namely CASH FLOW EFFICIENCY FINANCIAL RATIO: (more…)

[GO TO THE MAIN PAGE FOR ALL ARTICLES ON CASH FLOWS]

We have looked at the articles:Profit Versus Cash & Accounting on Cash Basis Versus Accrual basis.We should able to understand that the vein of an organization is its cash flow. We also have reviewed the Cash Flow Statement which is an integral part of the financial statements and a very critical report to see how the company’s monies being utilized. (more…)

Vice Versa to Part 4 where we can see whether a company is undercapitalized, this article is of interest to managers who might feel that a company has been ovecapitalized. Try looking at the following tell-tales/symptoms: (more…)

In earlier articles(Part1, 2, & 3) on gearing/borrowing/leverage financial ratios, append below further information on when you can see that a company is undercapitalized or not (more…)

In earlier Part 1 &2, we understand the gearing/borrowing/leverage level. Another way to look at it is the use of the Proprietary Ratio which represents the proportion of Proprietors’ Equity to Total Assets.

PROPRIETARY RATIO: (more…)