A Study To Use Financial Ratios To Predict The EPS Of Shipping Industry

• Main Authors: Hsiu-Man Chou, 周秀嫚
• Other Authors: Chin-Feng Liu
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/06578156613212845530

碩士 === 國立海洋大學 === 航運管理學系碩士在職專班 === 91 === A Study To Use Financial Ratios To Predict The EPS Of Shipping Industry Abstract Taiwan is an export-oriented country and relies heavily on ocean shipping for import and export commodities. Accordingly, besides the international trade, the shipping industry plays an important role in advancing Taiwan’s economy. Though shipping industry is service industry, they still must get profits to exist. So they must use resources properly and fully understand their strengths, facilities and capital to draw up a good plan and strategy for getting profit. How well companies operate their business will exhibit on their financial statements. Their investors can, then, adjust their investment decisions through financial ratios analysis. In this study, we collected 14 shipping companies’ financial statements from 1997 to 1999, and utilized financial ratios to predict their EPS. The relevance data of 2000 to 2001 are also gathered to test the model. 16 financial ratios are chosen as variables, and Factor Analysis is applied. Then, 8 financial ratios with high relationship of EPS are selected to build the prediction model (Zi=0.382Ri1+0.568Ri4+0.316Ri7-4.077Ri11+3.358Ri12-0.561Ri13+1.655Ri14) through Discrimination Analysis. By using this model, we show prediction correct rate 92.31% in 1999, 84.62% in 2000, and 69.23% in 2001. The Discrimination model prediction rate is good. So the financial rate has prediction competency.