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