Saturday, November 27, 2010

深读年报寻宝藏

分享锦集:深读年报 寻宝藏
2010/11/26 6:35:52 PM
●冷眼 股市基本面大师

股票投资者在收到他持有股份的公司的常年报告书之后,能翻开来细读的,少之又少。

大部分投资者,对年报都不屑一顾,更不要说深入阅读了。

而他投资于这家公司的资金,可能多达百万令吉,投入这么大笔的资金,却对有关公司的实况,一无所知,这种草率的态度,实在令人费解。

大部分股票投资者,都申诉股票资料难找,实际上刚好相反。

上市公司都必须遵守上市条例,按时公布公司的营业状况,这就是公司每三个月发布一次的季报和每年发布一次的年报,他们所必须公布的资料都是上市条例所规定的,不得偷工减料,这些资料足供投资者评估股票的价值。

投资者只要细读,对公司股份的价值,即使不能深入了解,最低限度,也会有一个清楚的概念。

谣言出错高

可惜大部分投资者都不肯花时间、精神去做功课,反而到处打听消息,听信谣言,以此作为买进卖出的根据,根据不可靠的资料作出的决定,出错的机会当然较高,难怪股市中人,总是亏多赚少。

了解公司进展

在股票研究中,年报是主要的资料来源,其重要性不言而喻。假如你要长期在股市中生存,养成阅读年报的习惯,是最起码的条件。

一家公司的年报,习惯上只报告过去一年的营业进展,过去的略而不提。所以,要了解一家公司,一定要阅读多年的年报,对公司的进展,才能了然于心。

我们知道,所有企业的营运,都是连续性的,如果只读一年的年报,对过去一无所知,你很难对公司的业务进程,有清楚的认识。

年报了解演变

这种情形,就好像我们只读断代史,无法了解一个国家的演变一样。所以,投资者除了读当年的年报之外,最好是同时阅读历年的年报。

马来西亚股票交易所由2002年起,通过www.bursamalaysia.com,给投资者免费提供的年报、季报和公司的文告,2002年以来的资料全部完整的保存在该所的网站中,这些都是非常宝贵的资料,不好好的利用,实在可惜。

评价资产价值

年报中刊载了非常宝贵的资料,如果你深入阅读的话,你不难找到宝藏。

这些都是非常难得的“贴士”,善加应用,可能为你带来意想不到的财富。

大家都知道,评估股票价值的三个最常用标准为本益比、周息率和每股净有形资产价值。买进股票的其中一个考量是:有关股票的价值是不是被低估?而评定价值是不是被低估的其中一个标准,就是每股净有形资产价值是不是比市价高。

考虑前途展望

当然,每股净有形资产价值只是评估标准之一,一只股票值不值得买进,除了净有形资产价值之外,还要考虑其他的因素,例如前途展望。

所有的年报,都会提供该公司股票的每股净有形资产价值(Net Tangible Asset Per Share,简称NTA)。账目中所提供的数字,到底可靠不可靠?是比市价低还是高?

随手举一个例子说明:如果你翻阅刚出炉的第一控股工业(FACB IND)年报的话,你就可以找到答案。

轻易算出产业价值

每一本年报都有一个“产业表”,列出该公司所拥有的房地产的地点、用途、面积、年龄、地契年期(永久性还是租用期地契)、账面价值和估值年份。

从这些资料,你可以轻易的算出有关产业的价值,从而看出该公司的产业价值是高过或低过市价。

【例一】第一控股工业

就以第一控股工业来说,该公司在两个工业区拥有厂地和厂房:

第一个是在麻坡的丹绒阿卡斯工业区拥有约5英亩厂地,为梦乡床垫(Dreamland)的制造厂所在地(第一控股工业的前身为梦乡),这组厂房厂地在账目中的价值为312万6000令吉,或是每平方尺14令吉39仙,估值年度为1991年。目前在账目中的价值仍为19年前的价值。

19年来,这些厂地厂房的价值涨了多少倍?现在的市值是多少?我们无从估计,但有一点是肯定的,市值必然高过19年前的价值。

第二个地点是在雪兰莪莎阿南工业区的厂地和厂房,也就是该公司主要业务——白钢厂所在地,厂地20.144英亩,99年地契,到2098年届满,账面价值为3724万5000令吉,估值年度为1992年。

到底这18年来,莎阿南的工业地涨了多少倍?我没有足够的资料可以佐证。但常识告诉我们:18年前买下的厂地,现在价值肯定已上涨了几倍。所以,3724万5000令吉的账面价值,肯定是被低估。

所以,假如第一控股工业重估其地产的话,该公司的每股净有形资产价值,肯定比年报中的2令吉16仙为高。

【例二】金狮工业

金狮工业是另一个典型例子。该公司在巴生武吉拉查的60英亩钢铁厂厂地,在账目中的价值仅3160万令吉,那是1994年的估值,现在涨了多少倍?

该公司的地产多达30宗,分散在雪、甲、柔、槟等高成长区,估值年度由1991至2008年不等,市价肯定比账面价值高。

换句话说,金狮工业的每股净有形资产价值肯定高过年报中的4令吉25仙。

【例三】金兴工业

金兴工业(Kim Hin)是一家瓷砖制造厂。在古晋、芙蓉、上海、澳洲设有工厂及仓库。这些产业的估值年度为古晋:1992(31英亩);芙蓉:1989(15.15英亩);上海:1992(53英亩);澳洲悉尼:1995(4.87英亩);雪兰莪加埔:2005(5.98英亩)。

目前的价值,肯定比账面价值高几倍。如果重新估值,每股净有形资产价值肯定比3令吉08仙的账面价值高,难怪该公司大股东持续不断的从股市吸购该公司的股票。

该公司的每股现金及准现金(债券、单位信托等),几乎等于其股票市价。

【例四】东方实业

东方实业(Oriental Holdings)在年报中,以18页的编幅,列出该公司所拥有的房地产。

这些遍布大马各州及印尼的产业,用途包括园丘、工业地、酒店、商业地等,估值年度由1968年到2009年,但绝大部分是80及90年代的估值,除非全面重新估值,否则该公司董事恐怕也无法准确知道其价值。

但有一点是可以肯定的,这些房地产的市值,肯定比账面价值不知高多少倍。

换句话说,东方实业的每股净有形资产价值,肯定比在6月30日时的7令吉43仙为高。更值得注意的是,该公司在6月底时的净现金高达近20亿令吉,成为大马现金最充沛的上市公司之一。

我随手举几个例子,旨在说明一点:股价虽然已屡创高峰,实际上,许多上市公司的每股净有形资产价值仍比市价低一截。像这类公司,其实还很多,只要你深入阅读年报,你不难有所发现。

我要特别指出:每股净有形资产价值,只是评估股票价值是否被低估的标准之一而已。一只股票是否值得买进,还要配合其他的因素如本益比、周息率、现金流、前途展望等,才能决定,不能单看每股净资产价值。

但是,假如其他因素相同的话,每股净有形资产价值雄厚的公司,其股票更值得投资。

年报蕴藏着许多宝藏,等待你去发掘。有恒地深读年报,必有所发现。


http://www.nanyang.com/sidelines ... mp;sid=9&cid=33

Monday, November 22, 2010

三分天下

投资股市,冷眼前辈将股价分为低、中、高价区。例RM9,0-3为低价区,3-6为中价区、6-9为高价区。在低价区买进胜算最高,高价区为劣境。

这是简易的方法,参考其他财务数据是必要的。

但从简单的方法来看,你会惊讶许多人都做不到!

就如指数於 1500,1000-1500为高价区,进场的胜算为低。

Sunday, November 21, 2010

Using Pivot Points for Predictions

We often hear market analysts or experienced traders talking about an equity price nearing a certain support or resistance level, each of which is important because it represents a point at which a major price movement is expected to occur. But how do these analysts and professional traders come up with these so-called levels? One of the most common methods is using pivot points, and here we take a look at how to calculate and interpret these technical tools.

How to Calculate Pivot Points
There are several different methods for calculating pivot points, the most common of which is the five-point system. This system uses the previous day's high, low and close, along with two support levels and two resistance levels (totaling five price points) to derive a pivot point. The equations are as follows:
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)
Here, "S" represents the support levels, "R" the resistance levels and "P" the pivot point. High, low and close are represented by the "H", "L" and "C" respectively. Note that the high, low and close in 24-hour markets (such as forex) are often calculated using New York closing time (4pm EST) on a 24-hour cycle. Limited markets (such as the NYSE) simply use the high, low and close from the day's standard trading hours.

Take a look at the following example of the five-point system, which illustrates a projection of Microsoft's (Nasdaq:MSFT) stock movement. Note the pivot point and the support and resistance levels.


Source: Yahoo! Finance


Another common variation of the five-point system is the inclusion of the opening price in the formula:



P = ((Today's O) + Yesterday's (H + L + C)) / 4

Here, the opening price, "O", is added to the equation. Note that the opening price for foreign exchange markets is simply the last period's closing price. The supports and resistances can then be calculated in the same manner as the five-point system, except with the use of the modified pivot point.

Yet another pivot point system was developed by Tom DeMark, a famous technical analyst and president of Market Studies, Inc. This system uses the following rules:



As you can see, there are many different pivot-point systems available. Some popular ones include as many as nine different price levels; meanwhile, others predict only one pivot point, and no additional levels of support or resistance.

Interpreting and Using Pivot Points
When calculating pivot points, the pivot point itself is the primary support/resistance. This means that the largest price movement is expected to occur at this price. The other support and resistance levels are less influential, but may still generate significant price movements.

Pivot points can be used in two ways. The first way is for determining overall market trend: if the pivot point price is broken in an upward movement, then the market is bullish, and vice versa. Keep in mind, however, that pivot points are short-term trend indicators, useful for only one day until they need to be recalculated. The second method is to use pivot point price levels to enter and exit the markets. For example, a trader might put in a limit order to buy 100 shares if the price breaks a resistance level. Alternatively, a trader might set a stop-loss for his active trade if a support level is broken.

Conclusion
Pivot points are yet another useful tool that can be added to any trader's toolbox. It enables anyone to quickly calculate levels that are likely to cause price movement. The success of a pivot-point system, however, lies squarely on the shoulders of the trader, and on his or her ability to effectively use the pivot-point systems in conjunction with other forms of technical analysis. These other technical indicators can be anything from MACD crossovers to candlestick patterns - the greater the number of positive indications, the greater the chances for success.

Thursday, November 18, 2010

公積金局宣佈,明年1月起恢復會員11%公積金繳交率

(吉隆坡18日訊)公積金局宣佈,明年1月起恢復會員11%公積金繳交率。

該局今日發表文告指出,該局將從明年2月起,為會員1月起繳交的薪金11%公積金額,存入個別戶頭。

公積金局是在2009年1月至今年12月,讓會員選擇繳交8%公積金繳納率。

Saturday, November 13, 2010

美國印鈔機開OT 熱錢流竄 榮景隨時變泡影

單聽“量化寬鬆貨幣政策”(Quantitative Easing Monetary Policy,QE2),這麼技術的名詞,沒有多少人會興趣研究下去;但如何告訴你,它的意思其實就是指政府“無中生有的印鈔票”,是否會引起你的好奇心?

量化寬鬆貨幣政策是近期國內外,尤其新興國家的熱門課題之一。

美國聯邦儲備局在11月3日,宣佈第二輪的量化寬鬆政策(簡稱QE2),讓全球尤其新興國家嘩然。

印鈔票,有什麼大不了?為何不能隨意增印鈔票?美國此舉,對亞洲新興國家如大馬,又有什麼影響?

沒錢的市井小民被人追款時最愛說的其中一句話是:你以為我印鈔票的嗎? 馬股在11月10日寫下閉市新高,牛氣十足。

是的,在一般人的印象中,沒錢就去印鈔票,有了花花綠綠的鈔票后就等于“有錢了”!

可是,對一個國家而言,鈔票不能隨便印,一個國家大量且憑空印鈔票的后果,將導致本國貨幣貶值。

若增印的鈔票是美元,這個影響可就大了…

多了的美元成為四處流竄的熱錢,例如大馬股市、房市、匯市因而“榮景”再現,由于這只是短期炒作資金,一旦大幅撤離,榮景隨時變泡影!

美元作為全球認可且流通的國際貨幣,美國擁有印鈔票的后台,但正因為美元現有地位和影響力,也是QE2推出后,引起各國恐慌的原因。

經濟學家白文春告訴《中國報》,以前以黃金為本位貨幣時,各國所印的鈔票數量是以黃金為標準,意即有多少黃金,才能印多少鈔票。

印越多 貶越快

他指出,自從美元取代黃金成為國際本位貨幣,成為國際流通的標準貨幣和儲備單位,加上擁有龐大的消費市場作后盾,美國自是有能力“印鈔票”。

“美國是規模龐大的消費國,對外採購仍使用美元支付,商家不會不買賬。”

全球約63%的外匯儲備是美元,或以美元計價。

白文春指出,這只是有數據證實的比重,基于世界銀行未能歸類一些資產的匯價,因此若包括這些未歸類資產,全球美元儲備比重可能達70%。

綜合這些因素,美國聯儲局不畏懼的推出QE2,美元也未因增印鈔票而大幅度暴跌。

所謂暴跌,是指在2至3天內,貨幣匯率重挫20%至30%。

換作是大馬,就不能如此大開印鈔機了。

因為令吉非國際通用貨幣,既不在國際流通,也沒有國家會收、會以令吉為儲備金。

“在這情況下,國行若印越多鈔票,令吉貶值只會更快。”

熱錢興風作浪 虎視眈眈短期公債

鈔票不斷增加,市場上的錢如此多,該怎么花、怎么用?小市民若有余錢,一般會放到高回酬的投資或儲蓄產品上。

大規模、有組織的投資機構或基金也不例外。

包括大馬在內的新興國家,經濟前景看俏、利率相對高,更是投資者垂涎的眼中肥羊,尤其是投機客。

因此,美國增印鈔票,也就是增加銀行體系的流動性(liquidity)后,這些熱錢瞄準的市場,離不開新興國家。

白文春指出,源自美國的游資氾濫,勢將流向區域國家。

“但這些游資,大部分偏好投資在政府短期債券,因為容易投資且可以很快脫手。”

換言之,熱錢的流入將影響公債價格,壓低回酬。

股市牛氣衝天寫新高

除了短期公債,股市是另一個可以迅速牟利的市場,例如向來受海內外基金青睞的藍籌股。

白文春指出,股市表現與經濟前景唇齒相依,股市一般隨著經濟前景向好走俏。

“如今宏觀經濟前景黯淡,明年經濟或走下坡,股市一般應隨之黯淡。”

熱錢帶動股市走高,部分投資者固然樂見其成,但非投資者或擔心,這股並非由基本面帶動的牛氣,或加劇通脹壓力。

儘管大馬利率(隔夜官方利率為2.75%)仍處于低水平,但比起接近零利率的日本(0至0.1%)和美國(0至0.25%),我國利率相對仍高。

他說,一旦美國及日本的避險基金流入大馬,除了投資回酬,還是可賺取可觀匯差收益。

事實上,在美國宣佈QE2的一週后,馬股市牛氣十足,在11月9日衝上1526.53點新高,及11月10日攀上1528點馬股有史以來最高閉市紀錄!

引發資產升值

美國希望美元貶值,迫使人民幣、日圓及歐元等貨幣升值。
聯昌投資銀行區域經濟分析主管李興裕指出,QE2以及亞洲相對仍寬鬆的貨幣政策,兩者加起來的影響,或引發新一輪的資產升值。

“這是因為投資者借取低利率貸款,投資在高回酬資產,這包括房地產、黃金、其他原產品及貨幣。”

黃金價格今年迄今已升值20%,銀價今年亦勁漲40%。新興國家貨幣更是被推升,引發貨幣大戰的隱憂。

白文春認為,由于熱錢偏好快及容易轉手的資產,因此熱錢的湧入,不會直接推高本地房地產價格。

他指出,國行不升息,使現有利率企在低水平,此舉或吸引有心者向銀行借貸購買資產,因此才引起房地產泡沫隱憂。

“這也是為什么,國行限制購買第三間屋子貸款額,不能超過屋價的70%。”

貨幣戰硝煙重 不升息免惹熱錢

中國經濟學家謝國忠說,全球貨幣戰爭未爆發,硝煙的味道已到處彌漫。

白文春不諱認,全球確實存有貨幣戰的可能。

“熱錢流入將對該國貨幣產生需求,進而使貨幣升值,若央行不進場干預,只會讓貨幣繼續升值。升值太快,只會加劇吸引更多游資流入。”

但所有政策都有其關聯性,以馬幣為例,若國家銀行進場干預令吉升勢,即買進外國貨幣、賣出令吉的干預,將變相增加市場上的令吉供應。

他說,為吸納這些市場上的令吉,國行一般會發行更多短期債券,且不會升息,以免擴大(與美國、日本的)利差,導致更多熱錢湧入。

綜觀海外,歐元區未跟進,日本卻趕在聯儲局之前啟動量化寬鬆政策,中國則開始喊話表達不滿。

至于其他國家,一般透過干預貨幣,或落實預扣稅(Withholding Tax),來抑制貨幣升值。

央行進場干預貨幣走勢的舉措,是挑起貨幣戰的導火線之一。

迄今,“貨幣戰”還沒有權威性的定義,但一般是指一個國家憑藉其強大的經濟和金融實力,利用貨幣和匯率政策,從經濟上打擊競爭對手、取得貿易優勢。

為下一輪危機埋禍根

綜合國內外經濟學家意見,美國聯邦儲備局(FED,簡稱聯儲局)啟動第二輪量化寬鬆政策,或為下一輪的金融危機埋下禍根!

聯儲局在11月3日推出QE2,將注資6000億美元(1兆8600萬令吉),在2011年第二季之前購買國債,藉此刺激企業和民眾貸款,來創造就業和活絡經濟。

中國知名經濟學家謝國忠指出,量化寬鬆政策是各國在貨幣戰爭的武器,大家競相印鈔票的后果,世界末日或不遠矣。

他認為,美國希望美元貶值,並迫使人民幣、日圓及歐元等貨幣升值,以解決目前自身的經濟難題。

問題是,世界各國目前的經濟也未出現明顯復甦,當然選擇出手阻升本國貨幣。

此舉不僅無法解決美國當前的經濟困境,更可能造成難以收拾的通貨膨脹。

謝國忠認為,美國貨幣寬鬆是個“死棋”!全球經濟不穩定就是因為美國在大量印鈔票,以致2012年時,全球可能將再次出現全球式的金融危機。

世銀促管制資本

大量熱錢湧入誘發亞洲資產泡沫,世界銀行呼籲,亞洲國家或需轉向資金管制,以遏止資本泡沫。

世銀執行董事英德拉瓦蒂指出,美國QE2正威脅並誘發亞洲資產泡沫,亞洲有必要恢復資本管制。

但她指出,這些管制措施應是暫時且具有目標的,以遏制這些流動性的湧現。

財金術語

■量化寬鬆政策

量化寬鬆是一種貨幣政策,由中央銀行通過公開市場操作以提高貨幣供應,可視之為“無中生有”創造出指定金額的貨幣,也被簡化形容為間接增印鈔票。

操作方式是央行通過公開市場購入證券等,使銀行在央行開設的結算戶口內的資金增加,為銀行體系注入新的流通性。

量化寬鬆中的“量化”,是指將會創造指定金額的貨幣;“寬鬆”則指減低銀行的資金壓力。

央行向銀行體系增加流動性后,銀行將坐擁大量資金,但只能賺取低利息。

如此一來,銀行的放款意願或更高以賺取回收益,進而紓緩市場的資金壓力。

■何謂本位貨幣

所謂本位貨幣,是一國貨幣制度規定的標準貨幣。

國際本位貨幣是指在國際上,佔據中心貨幣地位、可自由兌換的貨幣。

首先,這項貨幣必須能在全球自由兌換;其次,是能充當國際商品的價值或價格標準,成為各種貨幣匯率計算的中心。

黃金就曾是國際本位貨幣之一。

以黃金為本位時,黃金是整個國際貨幣體系的貨幣標準,使各國貨幣間及進出口物品間,存在一定的比價關係,那時美元的擴張及發行存在較大的約束,不能想印多少就多少。

Thursday, November 11, 2010

EV/EBITDA

EV/EBITDA is one of the most widely used valuation ratios. It is:

EV ÷ EBITDA

[Enterprise value (EV), attempts to measure the value of a company's business rather than the company. It answers the question "what would it cost to buy this business free of its debt and other liabilities?"

EV is calculated by adding together:

1.the market capitalisation of the company
2.the value of its debt financing (bonds and bank loans, not items such as trade creditors)
3.the value of other liabilities such as a deficit in the company pension fund
and subtracting the value of liquid assets such as cash and investments.

The calculation is made more complex where there are minority stakes in associates and subsidiaries: see EV/EBITDA. These adjustments also apply to other valuation measures using EV such as EV/EBIT and EV/EBITA. ]


The main advantage of EV/EBITDA over the PE ratio ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest.

If a business has debt, then a buyer of that business (which is what a potential ordinary shareholder is) clearly needs to take account of that in valuing the business. EV includes the cost of paying off debt. EBITDA measures profits before interest and before the non-cash costs of depreciation and amortisation.

EV/EBITDA is harder to calculate than PE. It does not take into account the cost of assets or the effects of tax. As it is used to look at the value of the business in EV terms it does not break this value down into the value of the debt and the value of the equity.

As EV/EBITDA is generally used to value shares it is assumed that debt (such as bonds) that has a verifiable market value is worth its market value. Other debt may be assumed to be worth its book value. Alternatively, it is valued in line with the company's traded debt (for example, with the same risk premium as the most similar traded debt).

Equity can then be assumed to be worth EV less the value of the debt.

The first advantage of EV/EBITDA is that it is not affected by the capital structure of a company, in accordance with capital structure irrelevance. This is something that it shares with EV/EBIT and EV/EBITA

Consider what happens if a company issues shares and uses the money it raises to pay off its debt. This usually means that the EPS falls and the PE looks higher (i.e. the shares look more expensive). The EV/EBITDA should be unchanged. What the “before” and “after” cases here show is that it allows fair comparison of companies with different capital structures.

EV/EBITDA also strips out the effect of depreciation and amortisation. These are non-cash items, and it is ultimately cash flows that matter to investors.

When using EV/EBITDA it is important to ensure that both the EV and the EBITDA used are calculated for the same business. If a company has subsidiaries that are not fully owned, the P & L shows the full amount of profits from but is adjusted lower down by subtracting minority interests. So the EBITDA calculated by starting from company's operating profits will be the EBITDA for the group, not the company. There are two common ways of adjusting for this:

•Adjust the EV by adding the value of the shares of subsidiaries not owned by the company. The end result is an EV/EBITDA for the group. This becomes complicated if there are a lot of subsidiaries.
•Include only the proportion of EBITDA in a subsidiary that belongs to the company. So if the company has a 75% stake in a subsidiary, only include 75% of the subsidiary's EBITDA in your calculation. This is simple for companies (such as many telecoms companies) that disclose proportionate EBITDA. Otherwise, it can become difficult if the subsidiaries' results are not separately available. It also needs the corresponding adjustment to EV. In the example above, only 75% of the subsidiary's debt would be included in the group EV.
Given these complications, a sum of parts valuation may be considered as an alternative for complex groups. EV/EBITDA could still be used to value each individual part of the group.

EV/EBITDA is usually inappropriate for comparisons of companies in different industries, as their capital expenditure requirements are different. Ideally one would substitute EBITDA minus maintenance capex (capital expenditure required if the business does not expand) for EBITDA. This is difficult. Alternatively, depreciation could be used as an inaccurate but easy proxy for maintenance capex which would mean using EV/EBITA

As with PE it is common to look at EV/EBITDA using forecast profits rather than historical, and similar terminology is then used.


http://moneyterms.co.uk/ev_ebitda/

ROE & Return On Assets - ROA

What Does Return On Equity - ROE Mean?

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

ROE is expressed as a percentage and calculated as:

Return on Equity = Net Income/Shareholder's Equity

Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares.

Also known as "return on net worth" (RONW).


What Does Return On Assets - ROA Mean?

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".

The formula for return on assets is: = Net Income/Total Assets

Note: Some investors add interest expense back into net income when performing this calculation because they'd like to use operating returns before cost of borrowing

Tuesday, November 9, 2010

Leverage

Total debt / total assets = Short Term Debts + Long Term Debts/Total Assets

Total debt / equity = Short Term Debts + Long Term Debts/Equity

Net debt / equity = Short Term Debts + Long Term Debts - Cash & Cash Equivalents/Equity