CMA Part A Flashcards Preview

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Flashcards in CMA Part A Deck (43):
1

Statement of Cash Flows

Cash from Operating Activities + Investing Activities + Financing Activities

2

Assets

Liabilities + Equity

3

Working Capital

Current Assets-Current Liabilities

4

Current Ratio

Current Assets/Current Liabilities

5

Current Assets

Cash + A/R + Trade Securities + Inventory + Prepaid Expenses

6

Current Liabilities

A/P + Accrued Liabilities + Notes Payables <365 days

7

Quick Ratio (Acid Test)

[Cash + Marketable Securities + A/R]/Current Liabilities

8

Cash Ratio

[Cash + Marketable Sec]/Current Liabilities

9

Cash Flow Rate

Operating Cash Flow/Current Liabilities

10

Capital Structure

mix of Long term debt + Equity (mandatory interest on debt, discretionary div pay on equity

11

Financial Leverage

Proper us of debt increase returns to owners

12

Solvency

Long term ability to pay debt from capital structure/Degree of Leverage

13

Days Purchases in A/P

[Average Accounts Payable balances/Credit Purchases]*365

14

Debt to Asset Ratio

Total Debt/Total Assets

15

Debt to Equity Ratio

Total Debt/Total Equity

16

LT Debt to Equity Ratio

[Total Debt-Current Liability]/Equity

17

Debt to Total Capital Equity

[Current Liability + Long Term Liability]/[Total Debt + Total Equity]

18

Cash Flow to Fixed Charges Ratio

[Cash from Operations + Fixed Charges + Tax]/Fixed charges

19

Fixed Charges Coverage Ratio

EBIT (Earning Before Fixed charges + Taxes)/Fixed Charges

20

Financial Leverage Ratio

Assets/Equity

21

Degree of Financial Leverage

[% change in Net Income]/[% change in EBIT (or Operating Inc)]

22

Degree of Operational Leverage

[% change in EBIT]/[% change in Sales]

23

A/R Turnover

Credit Sales/[average Gross A/R]

24

Days Sales in Receivables

[average A/R/Credit Sales] * 365

25

Inventory Turnover

COGS/[Average Inventory]

26

Days Sales in Inventory

[Average Inventory/COGS] * 365

27

Earning/Share

[Net Income - Preferred Div]/[Weighted average number of common shares O/S]

28

Earnings Yield

EPS/Market Price

29

Diluted Earning/Share

[Net Income - Preferred Div] Diluted common shares O/S (includes options, warrants)

30

Price Earnings Ratio

[Market Price/Share]/EPS

31

Dividend Payout Ratio

Common Dividend/Earnings avail to Common Shareholders

32

Dividend Yield

[Dividend/Share]/[Market Price/Share]

33

Sustainable Equity Growth

ROE (1-Div Payout Ratio)

34

Return on Assets (ROA)

Net Income/Total Assets

35

Gross Profit Margin %

[Sales - COGS]/Sales

36

Operating Profit Margin

Operating Profit/Sales

37

Net Profit Margin

Net Income/Sales

38

DuPont Model

Net income/Sales * Sales/Avg Total Assets * Avg Total Assets/Total Equity

39

Return on Common Equity

Net Income/Avg Equity=[Net Income/Avg Total Assets] * [Avg Tot Assets/Avg Equity]

40

Economic Profit

Total Rev- (Explicit cost and Implicit Costs)

41

Book Value/Share

[Total Shareholder Equity-Preferred Equity]/ Common Shares Outstanding

42

Market/Book Value

Current Market Share Price/Book Value per Share

43

Total Shareholder Equity

Total Stock Equity + Current Yr Net Income-Dividends-Preferred Equity