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CFA > Mega Terms 2 > Flashcards

Mega Terms 2 Flashcards

1
Q

receivables turnover

A

annual sales/average receivables

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2
Q

Days of sales outstanding

A

365/receivables turnover

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3
Q

Inventory turnover

A

cost of goods sold/average inventory

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4
Q

Days of inventory on hand

A

365/inventory turnover

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5
Q

Payables Turnover

A

Purchases/Average Trade Payables

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6
Q

Number of days of payables

A

365/payables turnover ratio

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7
Q

Total asset turnover

A

revenue/average total assets

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8
Q

Fixed asset turnover

A

Revenue/average net fixed assets

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9
Q

Working capital turnover

A

Revenue/Average working capital

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10
Q

Current Ratio

A

Current assets/Current liabilities

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11
Q

Quick Ratio

A

(Cash + Marketable Securites + Receivables)/ Current Liabilities

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12
Q

Cash Ratio

A

Quick ratio but take out receivables

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13
Q

Defensive interval

A

Cash + Marketable Securities + Recievables/ average daily expenditures

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14
Q

Cash Conversion Cycle

A

Days Sales Outstanding + Days of inventory on hand - number of days payable

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15
Q

Debt to capital

A

Total Debt/Total Shareholders’ Equity+Total Debt

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16
Q

Financial Leverage

A

Average total assets/Average total equity

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17
Q

Interest Coverage

A

Earnings before interest and taxes/Interest payments

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18
Q

Net Profit Margin

A

Net income/revenue

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19
Q

Operating profit margin

A

EBIT/Revenue

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20
Q

ROA

A

net income + interest expense(1- tax rate)/Average total assets

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21
Q

Operating return on assets

A

EBIT/average total assets

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22
Q

Return on equity

A

Net income/average total equity

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23
Q

Return on common equity

A

(net income - preferred dividends)/Average common equity

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24
Q

FCFF (Free Cash Flow to the Firm)

A

Cash flow from operations + [cash interest paid x (1 - tax rate)] - fixed capital investment - Working Capital Investment

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25
Q

FCFE (Free Cash Flow to Equity)

A

Cash flow from operations - fixed capital investment + net borrowing

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26
Q

Common-size income

A

Account/sales

27
Q

Common-size balance sheet

A

Account/total assets

28
Q

Common0size cash flow

A

Cash flow statement/revenues

29
Q

Original DuPont

A

ROE = (net profit margin)(asset turnover)(leveraged ratio)

30
Q

Extended DuPont

A

ROE = (net income/EBT)(EBT/EBIT)(EBIT/Revenue)(revenue/total assets(total assets/total equity)

31
Q

Basic EPS

A

(Net income - preferred dividends)/(weighted average number of common shares outstanding)

32
Q

Diluted EPS

A

[net income - preferred dividends] + [convertible preferred dividends] + (convertible debt interest)(1-t)/(weighted average shares) + (shares from conversion of conv. pfd. shares) + (shares from conversion of conv. debt) + (shares issuable from stock options)

33
Q

CV sales

A

The standard deviation of sales/mean sales

34
Q

CV operating income

A

standard deviation of operating income/mean operating income

35
Q

CV net income

A

standard deviation of net income/mean net income

36
Q

Ending inventory

A

Beg inventory + purchases - COGS

37
Q

FIFO Cogs

A

LIFO Congs - (ending LIFO reserve - beginning LIFO)

38
Q

DDB Depreciation

A

(2/useful life)(cost - accomulated depreciation)

39
Q

Average Age

A

Accumulation depreciation/annual depreciation expense

40
Q

Total Useful Life

A

Historical cost/annual depreciation expense

41
Q

Remaining Useful life

A

Ending net PP&E/Annual depreciation expense

42
Q

Income Tax Expense

A

Taxes Payable + ChangeDTL - ChangeDTA

43
Q

Cash flow to revenue

A

CFO/net revenue

44
Q

Cash return on assets

A

CFO/Average Total Assets

45
Q

Cash-to-income

A

CFO/Operating Income

46
Q

Cash flow per share

A

CFO - preferred dividends/weighted average number of common shares

47
Q

Debt Coverage

A

CFO/total debt

48
Q

Interest coverage

A

CFO + interest paid + taxes paid/interest paid

49
Q

Reinvestment coverage

A

CFO/Cash paid for long-term assets

50
Q

Operating Activities (Inflows)

A

Inflows (Cash collected from customer, interest, and dividends received, and sale proceeds from trading securities)

51
Q

Operating Activities (Outflows

A

Outflows (Cash paid to employees and suppliers, cash paid for other expenses, acquisition of trading securities, interest paid of debt of leases, taxes paid)

52
Q

Investing Activities (Inflows)

A

Sales proceeds from fixed assets, debt and equity investments, and principal received from loans made to others

53
Q

Investing Activities (Outflows)

A

Acquisition of fixed assets, debt and equity investments, and loans made to others

54
Q

Financing Activities (Inflows

A

Principal amounts of debt issued and proceeds from issuing stock

55
Q

Financing Activities (Outflows)

A

Principal paid on debt or leases, payments to reacquire stock, dividends paid to shareholders

56
Q

Income Statement

A

Net Sales - Cost of Goods Sold | Gross Profit - Operating expense | EBIT - Interest | Earnings Before taxes - Taxes +/- below the line items adjusted for tax | Net come - Preferred dividend | Income available to common

57
Q

Effective Tax Rate

A

Income tax expense/pretax income

58
Q

Net Income

A

Revenue - expenses

59
Q

new shares (treasury stock) - How many new shares from the use of options or warrants

A

((avg. market price - excise price)/avg. market price)* number of shares covered by options/warrants

60
Q

Gross Profit Margin

A

Gross Profit/Revenues

61
Q

Working Capital

A

Current Assets - Current Liabilities

62
Q

Return on total Capital

A

EBIT/Average total capital

63
Q

Retention rate

A

1-dividends declared/net income available to common

CFA (3 decks)

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