Ratios for FAR Flashcards
FAR Focus (25 cards)
Gross margin or gross profit margin
Sales (net) - COGS
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Sales (net)
Profit Margin
Net income
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Sales (net)
Return on sales
Income before interest income, interest expense, and taxes
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Sales (net)
Return on assets
Net income
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Average total assets
Dupont return on assets
Profit margin x Asset Turnover
Return on Equity
Net income
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Average total equity
Operating cash flow ratio
Cash flow from operations
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Current liabilities
Current ratio
Current Assets
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Current liabilities
Quick Ratio
Cash and cash equivalents + ST marketable securities + Receivables (net)
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Current liabilities
Accounts receivable turnover
Sales (net)
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Average accounts receivable (net)
Days sales in accounts receivable
Ending accounts receivable (net)
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Sales (net) / 365
Inventory Turnover
Cost of Goods Sold
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Average inventory
Days in Inventory
Ending Inventory
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COGS / 365
Accounts Payable Turnover
COGS
______________________________
Average accounts payable
Days of payables outstanding
Ending accounts payable
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COGS / 365
Cash conversion cycle
Days sales in accounts receivable + Days in inventory - Days of payables outstanding
Solvency Ratio
Debt-to-equity ratio
Total Liabilities
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Total Equity
Solvency Ratio
Total Debt Ratio
Total liabilities
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Total assets
Solvency Ratio
Equity Multiplier
Total assets
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Total Equity
Solvency Ratio
Times Interest Earned
Income before interest expense and taxes
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Interest expense
OR
Earnings before interest and taxes
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Interest expense
Performance Metrics
EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization
Top-down calc: Sales - COGS - Operating expenses (excluding depreciation and amortization)
Bottom-up calc: Net income + income tax expense + interest expenses + Depreciation and amortization
Performance Metrics
Earnings per Share
Income available to common shareholders
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Weighted average common shares outstanding
Performance Metrics
Price-to-earnings ratio
Price per share
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Basic earnings per share
Performance Metrics
Dividend Payout
Cash dividends
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Net income
