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Flashcards in Identities and Ratios Deck (37):
1

Cash flow identity

Cash flow from assets = Cash Cash flow from assets=cash flow to creditors + Cash flow from stockholders

2

What does the cash flow identity tell us?

How much money we have left over to give to creditors and investors

3

Cash flow from assets

Cash flow from assets =
Operating cash flow
- Net capital spending
- change in NWC

4

Operating cash flow =

EBIT+Deprec-Taxes

5

Net Capital Spending =

Ending NFA-Beg NFA +depreciation

6

Change in NWC =

End NWC - Beg NWC

7

Cash flow to creditors =

Interest paid - net new borrowing

8

Cash flow to stockholders =

Dividends - net new equity raised

9

What are the 3 short-term solvency or liquidity ratios?

1. Current ratio
2. Quick Ratio
3. Cash ratio

10

Current ratio

CA/CL

11

Quick Ratio

CA-INVT/CL

12

Cash ratio

Cash/CL

13

What are the long-term solvency or financial leverage ratios?

1. Total Debt Ratio
2. Debt-equity multiplier
3. Equity Multiplier
4. Times interest eared ratio
5. Cash coverage ratio

14

Total debt ratio

TA-TL/TA

15

Debt-equity ratio

Total debt/total equity

16

Equity multiplier

Total Assets/Total Equity

17

Times interest earned ratio

EBIT/Interest

18

Cash coverage ratio

EBIT+deprec/interest

19

Asset ulitization, or turnover, ratios

1. Inventory turnover
2. Days' sales in inventory
3. Receivables turnover
4. Payables turnover
5. Days' sales in receivables
6. Days' costs in payables
7. Total Asset turnover
8. Capital intensity

20

Inventory turnover

COGS/Invt

21

Days' sales in inventory

365/Invt turnover

22

Receivables turnover

Sales/Acct Recievable

23

Payables turnover

COGS/Accounts payable

24

Days' sales in receivables

365/Receivables turnover

25

Days' costs in payables

365/Payables turnover

26

Total asset turnover

Sales/Total Assets

27

Capital intensity

Total assets/Sales

28

What are the profitablility ratios

Profit margin
Return on Assets
Return on Equity
ROE 2

29

Profit margin

Net income/sales

30

ROA

Net income/total assets

31

ROE 1

Net income/total equity

32

Roe 2

Net Income/Sales X Sales/Assets X Assets Equity

33

What are the market value ratios?

Price-earnings ratio
Price-sales ratio
Market to book ratio
EbITDA

34

Price-earnings ratio

Price per share/EPS

35

Price-sales ratio

Price per share/Sales per share

36

Market to book

Market value per share/Book value per share

37

EBITDA

Interprise value/EBITDA