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Mega Terms 2 Flashcards

(63 cards)

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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
FCFE (Free Cash Flow to Equity)
Cash flow from operations - fixed capital investment + net borrowing
26
Common-size income
Account/sales
27
Common-size balance sheet
Account/total assets
28
Common0size cash flow
Cash flow statement/revenues
29
Original DuPont
ROE = (net profit margin)(asset turnover)(leveraged ratio)
30
Extended DuPont
ROE = (net income/EBT)(EBT/EBIT)(EBIT/Revenue)(revenue/total assets(total assets/total equity)
31
Basic EPS
(Net income - preferred dividends)/(weighted average number of common shares outstanding)
32
Diluted EPS
[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
CV sales
The standard deviation of sales/mean sales
34
CV operating income
standard deviation of operating income/mean operating income
35
CV net income
standard deviation of net income/mean net income
36
Ending inventory
Beg inventory + purchases - COGS
37
FIFO Cogs
LIFO Congs - (ending LIFO reserve - beginning LIFO)
38
DDB Depreciation
(2/useful life)(cost - accomulated depreciation)
39
Average Age
Accumulation depreciation/annual depreciation expense
40
Total Useful Life
Historical cost/annual depreciation expense
41
Remaining Useful life
Ending net PP&E/Annual depreciation expense
42
Income Tax Expense
Taxes Payable + ChangeDTL - ChangeDTA
43
Cash flow to revenue
CFO/net revenue
44
Cash return on assets
CFO/Average Total Assets
45
Cash-to-income
CFO/Operating Income
46
Cash flow per share
CFO - preferred dividends/weighted average number of common shares
47
Debt Coverage
CFO/total debt
48
Interest coverage
CFO + interest paid + taxes paid/interest paid
49
Reinvestment coverage
CFO/Cash paid for long-term assets
50
Operating Activities (Inflows)
Inflows (Cash collected from customer, interest, and dividends received, and sale proceeds from trading securities)
51
Operating Activities (Outflows
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
Investing Activities (Inflows)
Sales proceeds from fixed assets, debt and equity investments, and principal received from loans made to others
53
Investing Activities (Outflows)
Acquisition of fixed assets, debt and equity investments, and loans made to others
54
Financing Activities (Inflows
Principal amounts of debt issued and proceeds from issuing stock
55
Financing Activities (Outflows)
Principal paid on debt or leases, payments to reacquire stock, dividends paid to shareholders
56
Income Statement
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
Effective Tax Rate
Income tax expense/pretax income
58
Net Income
Revenue - expenses
59
new shares (treasury stock) - How many new shares from the use of options or warrants
((avg. market price - excise price)/avg. market price)* number of shares covered by options/warrants
60
Gross Profit Margin
Gross Profit/Revenues
61
Working Capital
Current Assets - Current Liabilities
62
Return on total Capital
EBIT/Average total capital
63
Retention rate
1-dividends declared/net income available to common

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