Untitled Deck

Question 1

What is the Current Ratio?

Answer 1

Current ratio = Current Assets / Current Liabilities

Question 2

What is the Quick Ratio?

Answer 2

Quick ratio = (Cash + Receivables) / Current Liabilities

Question 3

What is the Cash Ratio?

Answer 3

Cash ratio = Cash / Current Liabilities

Question 4

What is the Equity Multiplier?

Answer 4

Equity Multiplier = Total Assets / Equity

Question 5

What is the Debt-to-Equity Ratio?

Answer 5

Debt-to-Equity = Liabilities / Equity

Question 6

What is the Long-Term Debt-to-Equity Ratio?

Answer 6

Long-Term Debt-to-Equity = LT Debt / Equity

Question 7

What is the Operating Cash Flow to Current Liabilities ratio?

Answer 7

Operating Cash Flow to Current Liabilities = Operating Cash Flow / Average Current Liabilities

Question 8

What is the Operating Cash Flow to Capital Expenditure ratio?

Answer 8

Operating Cash Flow to Capital Expenditure = Operating Cash Flow / Annual Capital Expenditure

Question 9

What is the Percent Depreciated?

Answer 9

Percent Depreciated = Accumulated Depreciation / Cost of Depreciable Asset

Question 10

What is the Property, Plant and Equipment Turnover?

Answer 10

Property, Plant and Equipment Turnover = Sales Revenue / Average PPE

Question 11

What is the Average Payment Period (DPO)?

Answer 11

Average Payment Period (DPO) = Average Accounts Payable / Average Daily Purchases

Question 12

What is the Average Inventory Period (DIO)?

Answer 12

Average Inventory Period (DIO) = Average Inventory / Average Daily COGS

Question 13

What is the Average Collection Period (DSO)?

Answer 13

Average Collection Period (DSO) = Average Accounts Receivable / Average Daily Sales

Question 14

What is the Times Interest Earned ratio?

Answer 14

Times Interest Earned = EBIT / Interest Expense

Question 15

What is the Payout Ratio?

Answer 15

Payout Ratio = Dividends per Share / Earnings per Share

Question 16

What is the Dividend Yield?

Answer 16

Dividend Yield = Dividends per Share / Stock Price

Question 17

What is the Price-to-Earnings Ratio (PER)?

Answer 17

Price-to-Earnings Ratio (PER) = Market Price per Share / Earnings per Share

Question 18

What is the Price-to-Book Value?

Answer 18

Price-to-Book Value = Market Price per Share / Book Value per Share

Question 19

What is the EV Multiple?

Answer 19

EV Multiple = Enterprise Value / EBITDA

Question 20

What is Earnings per Share (EPS)?

Answer 20

Earnings per Share (EPS) = Net Income / Weighted Average Number of Shares Outstanding

Question 21

What is Basic Earnings per Share (BEPS)?

Answer 21

Basic Earnings per Share (BEPS) = (Net Income − Preferred Dividend) / Weighted Average Number of Shares Outstanding

Question 22

What is Diluted Earnings per Share (DEPS)?

Answer 22

Diluted Earnings per Share (DEPS) = (Net Income − Preferred Dividend + Adjustments) / (WA Shares Outstanding + Convertible Securities & Options)

Question 23

What is Return on Equity (ROE)?

Answer 23

Return on Equity (ROE) = Net Income / Average Total Equity

Question 24

What is Return on Assets (ROA)?

Answer 24

Return on Assets (ROA) = Net Income / Average Total Assets

Question 25

What is the Effective Tax Rate?

Answer 25

Effective Tax Rate = Provision for Income Tax / Income Before Income Tax

Question 26

What is the Profit Margin Ratio?

Answer 26

Profit Margin Ratio = Net Income / Sales Revenue

Question 27

What is the Gross Profit Margin?

Answer 27

Gross Profit Margin = Gross Operating Margin / Net Sales

Question 28

What is the EBITDA Margin?

Answer 28

EBITDA Margin = EBITDA / Sales Revenue

Question 29

What is the Asset Turnover?

Answer 29

Asset Turnover = Sales / Average Total Assets

Question 30

What is the Accounts Receivable Turnover?

Answer 30

Accounts Receivable Turnover = Sales / Average AR

Question 31

What is the Inventory Turnover?

Answer 31

Inventory Turnover = COGS / Average Inventory

Question 32

What is the Cash Conversion Cycle (CCC)?

Answer 32

Cash Conversion Cycle (CCC) = DIO + DSO − DPO