would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka
GROSS DOMESTIC PRODUCT (GDP)
Message [Page 1 of 1]
How do ratios given in annual reports for a particular year change in the next year's report. Thu May 30, 2013 12:17 pm
Re: How do ratios given in annual reports for a particular year change in the next year's report. Thu May 30, 2013 12:30 pm
K.Haputantri wrote:While examining the annual audited reports of listed companies, I noticed that PE for year 2008 given in 2008 annual report is completely different from the PE for the same year (2008) as given in 2009 report. Similar errors were noted in almost all reports.
?Can any one explain how this happens.
Re: How do ratios given in annual reports for a particular year change in the next year's report. Thu May 30, 2013 1:17 pmThanks for your professional explanation. 2010 report gives PE for year 2009 as Rs:13.56 while year 2009 report gives PE for 2009 as Rs:30.08 where a significant difference is noticed. Year 2011 report gives 2011 PE as Rs 26.53 while year 2012 report gives the same PE as Rs:23.00 where over 10% diferrence is noticed. I did not go through the full report to see if there are explanations. However, shouldn't they give some mark referring to an explanation where significant difference is noticed?malanp wrote:K.Haputantri wrote:While examining the annual audited reports of listed companies, I noticed that PE for year 2008 given in 2008 annual report is completely different from the PE for the same year (2008) as given in 2009 report. Similar errors were noted in almost all reports.
?Can any one explain how this happens.
is it completely different or slightly different? if it is completely different then they should disclose in the account,
Slight or minor differences arise through prior year adjustments ie. when they get income or expense relating to previous year they straight charge to the prior year profit, then prior year EPS is calculated on the adjusted profit.
some companies like VFIN show annualised EPS, and this can always change.
Re: How do ratios given in annual reports for a particular year change in the next year's report. Thu May 30, 2013 1:34 pm Re: How do ratios given in annual reports for a particular year change in the next year's report. Thu May 30, 2013 1:43 pm
K.Haputantri wrote:
2010 report gives PE for year 2009 as Rs:13.56 while year 2009 report gives PE for 2009 as Rs:30.08 where a significant difference is noticed.
Re: How do ratios given in annual reports for a particular year change in the next year's report. Thu May 30, 2013 3:30 pminnam wrote:K.Haputantri wrote:
2010 report gives PE for year 2009 as Rs:13.56 while year 2009 report gives PE for 2009 as Rs:30.08 where a significant difference is noticed.
What is the company used in your example? PE is a ratio and shouldn't have Rupees in front of it. If you are talking about EPS then it may be a split.
But looks like your example may be due to the company using the current year end share price to calculate the PE. eg if the 2010 share price is 135 and 2009 EPS was 10 then the PE calculated in the 2010 report would be 13.5, but the year end share price at 2009 could have been 300 giving a PE in 2009 report as 30
Message [Page 1 of 1]
FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » How do ratios given in annual reports for a particular year change in the next year's report.
Similar topics
Permissions in this forum:
You cannot reply to topics in this forum
Home
