Steel Industry Analysis Baotou Steel

Inner Mongolia Baotou Steel

Analysis of the steel industry

Assignment

      3755 words







Contents Page

TOC \t "题目, 1,题目 2, 2,题目 3, 3"
Section E – Accounting Analysis PAGEREF _Toc \h 6
Key accounting policies PAGEREF _Toc1 \h 6
Assessing accounting flexibility PAGEREF _Toc2 \h 16
Quality of disclosure PAGEREF _Toc3 \h 17
Red flag identification and accounting analysis implementation PAGEREF _Toc4 \h 21
1. Revenue PAGEREF _Toc5 \h 21
2. Depreciation PAGEREF _Toc6 \h 22
3. Intangibles PAGEREF _Toc7 \h 25
4. Inventory turnover PAGEREF _Toc8 \h 26
Section F - Financial Analysis PAGEREF _Toc9 \h 28
Profitability Analysis PAGEREF _Toc10 \h 28
Asset management analysis PAGEREF _Toc11 \h 32
Debt and safety analysis PAGEREF _Toc12 \h 35
Cash Flow Analysis PAGEREF _Toc13 \h 40
Credit Analysis PAGEREF _Toc14 \h 45
Section G - Forecasting PAGEREF _Toc15 \h 48
Forecast data PAGEREF _Toc16 \h 48
1. Sales PAGEREF _Toc17 \h 48
  2. COGS PAGEREF _Toc18 \h 53
3. For all the other remaining items: PAGEREF _Toc19 \h 54
Scenario analysis PAGEREF _Toc20 \h 55
1. Most likely PAGEREF _Toc21 \h 56
2. Pessimistic PAGEREF _Toc22 \h 56
3. Optimistic PAGEREF _Toc23 \h 58
Section H - Risk analysis PAGEREF _Toc24 \h 60
Section I – Cost of capital PAGEREF _Toc25 \h 69
Cost of equity PAGEREF _Toc26 \h 69
Cost of debt PAGEREF _Toc27 \h 71
Cost of capital PAGEREF _Toc28 \h 72
Section J – Valuation PAGEREF _Toc29 \h 73
        1. Most likely scenario PAGEREF _Toc30 \h 73
  3. Pessimistic Scenario and Optimistic Scenario analysis PAGEREF _Toc31 \h 75
3. Valuation multiples PAGEREF _Toc32 \h 80
Conclusion PAGEREF _Toc33 \h 81

List of figures

Figure 1.1: Sales, COGS and receivables comparison……………………………...20
Figure 1.2: Depreciation to PPE ratio……………………………………………….21
Figure 1.3: Amortization relative to intangibles…………………………………….23
Figure 1.4: Comparison of inventory turnover...