Balance Sheet Flashcards

1
Q

Assets - Liabilities =

A

Net Worth

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2
Q

Quick Assets =

A

Current Assets - Inventory

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3
Q

Working Capital =

A

Current Assets - Current Liabilities

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4
Q

What is Beta?

A

Measurement of a stocks volatility as compared to the market as a whole / S&P500

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5
Q

CAPM

A

Capital Asset Pricing Model

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6
Q

What is Alpha?

A

Excess over Beta (positive or negative)

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7
Q

Current Assets / Current Liabilities =

A

Current Ratio

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8
Q

Quick/Acid Test Ratio =

A

Quick Assets / Current Liabilities
(Quick assets = current assets - liabilities)

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9
Q

Capitalization of a Company =

A

Equity + Long Term Debt (Bonds)

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10
Q

PE Ratio =

A

Market Price / Earnings = X years to get back in earnings what I paid

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11
Q

Dividend Payout Ratio =

A

Dividends / Earnings

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12
Q

After a Dividend is declared, it becomes (company)
A. Current Asset
B. Current Liability
C. Current Yield
D. The earnings

A

B. Current Liability

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13
Q

Current Yield =

A

What the investment pays me / cost me
(i.e. Dividend / current market price) or annual interest / cost for a bond

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14
Q

Return on Assets (ROA) =

A

Net profit / Total Assets

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15
Q

Net Profit Margin =

A

Net profit / Total Revenue

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16
Q

Current Ratio=

A

Current Assets / Current Liabilities

17
Q

Return on Equity (ROE)=

A

Net profit / Stockholders equity

18
Q

Book value per share=

A

$Stockholders equity / number of common shares outstanding