FAST pdf Flashcards
1
Q
ROA: the 2 metrics
A
operating profit/ assets
operating profit/sales * Sales/assets
2
Q
WCR
A
acc rec + inventory - acc payable
3
Q
NWC
A
current assets - current debt
4
Q
3 types of analysis
A
liquidity
profitability
solvency
5
Q
2 main liquidity ratios
A
current ratio: current assets/current debt
quick ratio: (acc rec + cash)/ current debt
6
Q
the 3 sales ratios regarding WCR
A
DSO: acc rec/ sales 365
DIO: inventory/sales365
DPO: acc pay: sales *365
7
Q
2 profitability ratios
A
ROA
ROE
8
Q
in which two things can you split up the ROA
A
a profit margin and asset turnover (which depicts the efficiency)
9
Q
how does ROE and ROA bridge (give formula)
A
ROE= ROA + (ROA - avg cost of debt) Debt/equity
10
Q
debt ratio
A
debt/assets
11
Q
other slvency ratio including the ocf
A
ocf/current financial debt + interest
