FINANCIAL ANALYSIS Flashcards Preview

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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

DuPont (original)

ROE = net profit margin * asset turnover * leverage ratio