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EZC1 - Finance > RatioAnalysis > Flashcards

Flashcards in RatioAnalysis Deck (20)
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1

Current Ratio

Current Assets / Current Liabilities

2

Quick Ratio

(Current Assets – Inventory) / Current Liabilities

3

Average Collection Period

AR / Daily Credit Sales

4

AR Turnover

Credit Sales / AR

5

Inventory Turnover

COGS / Inventory

6

Total Asset turnover

= sales / total assets

7

Fixed Asset turnover

= sales / fixed assets

8

OIROI
Operating Income Return on Investment

= operating income / total assets
(also used as a profitability ratio)

9

Debt Ratio

= Total Debt / Total Assets

10

Times Interest Earned

= EBIT / Interest Expense

11

Return on Assets (ROA)

= NI/Total Assets

12

Return on Equity (ROE)

= NI/Equity

13

Gross Margin

= Gross Profit/Sales

14

Operating Margin

= EBIT/Sales

15

Net Margin

= NI/Sales

16

Return on Equity (ROE) (DuPoint Equation)

= Net Profit Margin × Asset Turnover × Leverage Multiplier

17

Return on Invested Capital
ROIC

= NOPAT / (Costly Capital)

18

Free Cash Flow to Firm (FCFF)

EBIT
-Cash Tax Payments
+Depreciation
-CAPEX
-Increases in NWC

19

Free Cash Flow to Equity Holders (FCFE)

Net Income
+Depreciation
-CAPEX
-Increase in NWC
+Increase in Net Long-Term Debt

20

Economic Value Added (EVA)

= NOPAT - [WACC x (Costly Capital)]