36 Cards in this Set
| Front | Back |
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Current Ratio
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Current assets/ Current Liabilities
The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months.
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Quick Ratio
|
Current Assets- Inventory/Current Liabilities
In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets pay its current liabilities immediately.
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Average Collection Ratio
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Accounts Receivable/ Avg. Daily Sales
or (Accounts Receivable/Sales) x 360
Average number of days it takes to collect receivables
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Inventory Turnover Ratio
|
COGS/Inventory
Whether the firm has excess funds tied up in inventory
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Fixed Asset Turnover Ratio
|
Sales/ Fixed Assets
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Total Asset Turnover Ratio
|
Sales/ Total Assets
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Debt Ratio
|
(Long-term Debt + Current Liabilities)/ Total Assets
Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt.
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Debt to Equity Ratio
|
Long Term Debt: Equity
The proportion of shareholders' equity and debt used to finance a company's assets.
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Times Interest Earned
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EBIT/ Interest
A measure of a company's ability to honor its debt payments before interest and taxes.
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Cash Coverage Ratio
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(EBIT + Lease Payments)/ (Interest + Lease Payments)
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EBITDA Coverage
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(EBIT + Lease Payments)/ (Interest + Lease Payments + Principal Repayment)
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ROS/ Profit Margin
|
Net Income/ Sales
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ROA
|
Net Income/ Total Assets
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ROE
|
Net Income/ Equity
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EPS
|
Net Income/ # Shares of Common Stock Outstanding
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P/E Ratio
|
Stock Price/ EPS
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ROA (Du Pont)
|
ROS X Total Asset Turnover
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ROE (Du Pont)
|
ROA X Equity Multiplier
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Cash From Operating Activities
|
Net Income
Depreciation
Net Changes in Current Accounts
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Cash From Investing Activities
|
Purchase of Fixed Assets
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Cash From Financing Activities
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Decrease in LTD
Sale of Stock
Dividend Paid
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Net Changes in Current Accounts
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Receivables
Inventory
Payables
Accruals
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Gross Margin
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Gross Margin
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EBIT
|
Gross Margin - All Expenses
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Net Income
|
EBIT - Tax
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Total Equity
|
common + Preferred Equity
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Total Capital
|
Long Term Debt + Equity
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Total Effective Tax Rate
|
Tf + Ts(1-Tf)
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Restated Corporate Tax
|
rate(1-marginal tax rate)
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Asset Increase (Rule)
|
Use
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Liability Increase (Rule)
|
Source
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Asset Decrease
|
Source
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Liability Decrease
|
Use
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Net Operating Profit
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EBIT - (T)(EBIT)= EBIT (1-T)
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Operating Cash Flow
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Net Operating Profit + Depreciation
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Free Cash Flow
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Operating Cash Flow
- increase in gross fixed assets
- increase in current accounts
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HB 311: Exam 1