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CVA > Ratios > Flashcards

Ratios Flashcards

1
Q

What is the current ratio?

A

Current assets / current liabilities

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2
Q

What is the quick ratio?

A

(Cash + Marketable Securities + A/R) /

Current Liabilities

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3
Q

What is the cash ratio?

A

(Cash + marketable securities) /

Current Liabilities

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4
Q

What is the receivable turnover ratio?

A

Net Sales /

(Beginning A/R + Ending A/R)/2

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5
Q

What is the inventory turnover ratio?

A

COGS /

(Beginning inventory + ending inventory)/2

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6
Q

What is the payables turnover ratio?

A

COGS /

(Beginning AP + Ending AP)/2

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7
Q

What is the cash conversion cycle calculation?

A

Inventory turnover period + days to collect A/R - Payable payment period

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8
Q

What is the net fixed asset turnover ratio?

A

Net Sales / ((Beginning F/A + Ending F/A)/2)

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9
Q

What is the total asset turnover ratio?

A

Net sales / (Beginning total assets + ending total assets)/2)

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10
Q

What is the cost of sales ratio?

A

Cost of sales / Net sales

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11
Q

What is the gross margin ratio?

A

(Net sales - cost of sales) / Net sales

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12
Q

What is the operating expenses ratio?

A

Operating expenses / Net sales

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13
Q

What is the operating margin ratio?

A

Income from Operations / net sales

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14
Q

What is the return on asset ratio?

A

Net income / ((Beginning total assets + ending total assets)/2)

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15
Q

What is the return on equity ratio?

A

Net Income / ((Beginning equity + ending equity)/2)

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16
Q

What is the coefficient of Variation of operating income?

A

σEBIT /
μEBIT

σ – is the symbol for the standard deviation
μ – the symbol for the Mean (or average).

17
Q

What is the sales volatility ratio?

A

σSales /
μSales

σ – is the symbol for the standard deviation
μ – the symbol for the Mean (or average).

18
Q

What is the degree of operating leverage ratio?

A

%{change}EBIT /

%{change}Sales

19
Q

What is the long-term debt to equity ratio?

A

(Long term debt + deferred tax liabilities) /

Total equity

20
Q

What is the total debt-to-total invested capital ratio

A

(current liabilities + long term debt) / (Total liabilities + total capital)

21
Q

What is the total debt-to-total assets ratio

A

(Current liabilities + LT Debt) /

Total assets

22
Q

What is the interest coverage ratio?

A

Earnings before interest and taxes (EBIT) /

Interest expense

23
Q

What is the operating cash flow ratio?

A

OCF /

Current liabilities

24
Q

What is the operating cash flow to long term debt ratio?

A

OCF /

Book value of LT debt + PV of lease obligations

25
Q

What is the operating cash flow to total debt ratio?

A

OCF /

Total LT debt + Current interest bearing liabilities

CVA (3 decks)

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