Flashcards in FINANCIAL ANALYSIS Deck (37):

1

## Receivables turnover (A)

### annual sales / average receivables

2

## Days of sales outstanding (A)

### 365 / receivables turnover

3

## Inventory turnover (A)

### cost of goods sold / average inventory

4

## Days of inventory on hand (A)

### 365 / inventory turnover

5

## Accounts payable turnover (A)

### purchases / average accounts payable

6

## Number of days payable (A)

### 365 / payables turnover ratio

7

## Total asset turnover (A)

### revenue / average total assets

8

## Fixed asset turnover (A)

### revenue / average net fixed assets

9

## Working capital turnover (A)

### revenue / average working capital

10

## Current ratio (L)

### current assets / current liabilities

11

## Quick ratio (L)

### (cash + marketable securities + receivables) / current liabilities

12

## Cash ratio (L)

### (cash + marketable securities) / current liabilities

13

## Defensive interval (L)

### (cash + marketable securities) / average daily expenditures

14

## Cash conversion cycle (L)

### (days of sales outstanding) + (days of inventory on hand) - (number of days payable)

15

## Debt-to-equity (S)

### total debt / total shareholder's equity

16

## Debt-to-capital (S)

### total debt / (total debt + total shareholder's equity)

17

## Debt-to-assets (S)

### total debt / total assets

18

## Financial leverage (S)

### average total assets / average total equity

19

## Interest coverage (S)

### EBIT / interest payments

20

## Fixed charge coverage (S)

###
(EBIT + lease payments) / (interest payments + lease payments)

Contractual/periodic charges.

21

## Net profit margin (P)

### net income / revenue

22

## Gross profit margin (P)

### (revenue - COGS) / revenue

23

## Operating profit margin (P)

### Operating income / revenue

24

## Operating profit margin (P) 2

### EBIT / revenue

25

## Pretax margin (P)

### EBT / revenue

26

## Return on assets (ROA) (P)

### net income / average total assets

27

## Operating return on assets (P)

### Operating income / average total assets

28

## Operating income

### EBIT

29

## Return on total capital (P)

### EBIT / average total capital

30

## Return on equity (P)

### net income / average total equity

31

## Return on common equity (P)

### (net income - preferred dividends) / average common equity

32

## Free cash flow to the firm FCFF 2

###
cash flow from operations + [interest expense * (1-tax rate)] - fixed capital investments

FCFF is for equity and debt holders

33

## Free cash flow to equity FCFE

###
cash flow from operations + net borrowing - fixed capital investment

net borrowing is new debt

34

## Common size income statement

### divide by revenue

35

## Common size balance sheet

### divide by total assets

36

## Common size cash flow ratios

### divide by revenue

37