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Flashcards in FINANCIAL ANALYSIS II Deck (30):
1

DuPont (original)

ROE = (net profit margin)*(asset turnover)*(leverage ratio)

2

Net profit margin

net income / revenue

3

Asset turnover

revenue / average total assets

4

Leverage ratio

total assets / shareholder's equity

5

DuPont (extended)

(net income / EBT) * (EBT/EBIT) * (EBIT/revenue) * (revenue / total assets) * (total assets / total equity)

6

Basic EPS

(net income - preferred dividends) / weighted average common stock outstanding

7

Diluted EPS numerator

(net income - preferred dividends) + convertible preferred dividends + (convertible debt interest * (1-tax rate))

8

Diluted EPS denominator

Weighted average shares + shares from conversion + shares from issuable stock options

9

Coefficient of variation of sales

standard deviation of sales / average sales

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Coefficient of variation operating income

standard deviation of operating income / average operating income

11

Coefficient of variation of net income

standard deviation of net income / average net income

12

Ending inventor

beginning inventory + purchases - COGS

13

DDB depreciation

(2/useful life) * (cost - accumulated depreciation)

14

Straight-line depreciation

(cost - salvage value) / useful life

15

Income tax expense

taxes payable + change in deferred tax liability - change in deferred tax asset

16

Interest expense

(market rate at issue) * balance sheet liability at beginning of period

17

Cash flow to revenue (P)

CFO / net revenue

18

Cash return on assets (P)

CFO / average total assets

19

Cash return on equity (P)

CFO / average total equity

20

Cash-to-income (P)

CFO / operating income

21

Cash flow per share

(CFO - preferred dividends) / weighted average number of common shares

22

Debt coverage (C)

CFO / total debt

23

Interest coverage (C)

EBIT / interest paid

24

Reinvestment (C)

CFO / cash paid for long-term assets

25

Debt payment (C)

CFO / cash long-term debt repayment

26

Dividend payment (C)

CFO / dividends paid

27

Investing and financing (C)

CFO / cash outflows from investing and financing

28

Sustainable growth rate

ROE * retention rate

29

Retention rate

1 - dividend payout ratio

30

Net profit margin (extended for dupont)

(net income / EBT) * (EBT / EBIT) * (EBIT / revenue)