Outline 1 Flashcards
(24 cards)
Balance Sheet
shows values of firm’s assets and liabilities
current assets
cash and securities, receivables, inventories
LEFT of balance sheet
fixed assets
tangible & intangible assets
LEFT of balance sheet
current liabilities
payables, short-term debt
RIGHT of balance sheet
balance sheet items
current assets, fixed assets, current liabilities, long-term liabilities, shareholders’ equity
shareholders’ equity
shareholders’ equity = total assets - total liabilities
book values
determined by GAAP
market values
determined by current values
the income statement
financial statement that shows revenues, expenses, and net income of firm over period of time
EBITDA
earnings before interest, taxes, depreciation, and amortization
3 types of cash flow: cash flow from operations
cash generated from running business
3 types of cash flow: cash flow from investments
use of cash from acquiring assets/businesses
3 types of cash flow: cash flow from financing
source of cash from issuing debt or selling new shares of stocks
Valuation
value of firm’s specific assets
leverage
measure use of debt and associated fixed expenses
liquidity
measure firm’s access to cash
profibility
measures return on investments
efficiency
productivity of the use of firm’s assets
Long-term debt ratio
long term debt/long term debt + equity
debt equity ratio
long term debt / equity
total debt ratio
total liabilities / total assets
current ratio
current assets / current liabilities
payout ratio
dividends / earnings
PE ratios
stock price / earnings per share
