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52 Cards in this Set
- Front
- Back
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Current Ratio |
Current Assets/Current Liabilities
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Quick Ratio (Acid Test)
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Cash+Marketable Securities+Receivables/Current Liabilities
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Cash Ratio
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Cash+Marketable Securities/Current Liabilities
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Financial Leverage
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Total assets/Total Equity
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Degree of Operating Leverage (DOL)
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Q(P-VC)/(Q(P-VC)-TFC) or (S-TVC)/(S-TVC-TFC) or %ChangeEBIT/%ChangeSales
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Degree of Financial Leverage (DOF)
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Q(P-VC)/(Q(P-VC)-I) of %ChangeEPS/%ChangeEBIT
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Degree of Total Leverage (DOT)
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DOL X DOF or Q(P-VC)/(Q(P-VC)-F-I) or (S-TVC)/(S-TVC-TFC - I) or %ChangeEBIT/%ChangeSales X %ChangeEPS/%ChangeEBIT = %ChangeEPS/%ChangeSales
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Receivables Turnover
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Annual Sales/Avg. Receivables
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Inventory Turnover
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COGS/Avg. Inventory
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Payables Turnover
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Purchases/Avg. Trade Payables
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Days of Sales Outstanding
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365/Receivables Turnover
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Days of Inventory on Hand
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365/Inventory Turnover
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Number of Days Payable
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365/Payables Turnover Ratio
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Cash Conversion Cycle
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(Days of Sales Outstanding) + (Days of Inventory on Hand) - (Number of Days Payable)
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Total Asset Turnover
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Revenue / Avg. Total Assets
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Fixed Asset Turnover
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Revenue / Avg. net Fixed Assets
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Working Capital Turnover
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Revenue / Avg. Working Capital
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Gross Profit Margin
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Gross Profit / Revenue
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Operating Profit Margin
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Operating Income/Revenue = EBIT/Revenue
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Return on Total Capital
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EBIT/avg. Total capital
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Retrun on Total Equity
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EBIt/avg. Total Equity
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Retrun on Common Equity
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(Net Income - Preferred Dividends) / avg. Common Equity
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Debt-to-Equity Ratio
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Total Debt/Total Equity
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Debt-to-Capital Ratio
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Total Debt/(Total Debt + Total Shareholders Equity)
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Debt-to-Assets
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Total Debt/Total Assets
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Interest Coverage
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EBIT/Interest Payments
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Fixed Charge Coverage
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EBIT+Lease Payments / (Interest Payments + Lease Payments)
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g
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Retention Rate X ROE
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Retention Rate
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1 - (Dividends Declared / Net Income Available to Common)
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ROE
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Net Income / Equity
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Dupont ROE
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(Net Income/Sales) X (Sales/Assets) X (Assets/Equity) = Net Profit Margin X Asset Turnover X Leverage Ratio
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Extended Dupont
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(Net Income/EBT) X (EBT/EBIT) X (EBIT/Revenue) X (Revenue/Assets) X (Assets/Equity) = Tax Burden X Interest Burden X EBIT Margin X Asset Turnover X Financial Leverage
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GAAP Inventory
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Lower of Cost or Market (where Market cannot exceed Net Realizable Value)
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IFRS Inventory
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Lower of Cost or Net Realizalbe Value
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Net Realizable Value
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Selling Price - Selling Cost (how much you can realistically net from the sale)
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Carrying Value
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Original Cost - Accumulated Depreciation
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Market
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Replacement cost, where upper limit is the NRV and the lower limit is the NRV-profit margin
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Commodity and Agricultural goods
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Can be report above historical cost (IFRS and GAAP)
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Straight Line Depreciation
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(Original Cost - Salvage Value) / Depreciable life (years)
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Double-Declining Balance (DDB)
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(2 / Asset's life (years)) X Book value at the beginning of year x
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Units of Production
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((Original Cost - Salvage Value) / Life in output units) X units producted in period
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Derecognition of Long-Lived Assets
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Long lived assets are derecognized when they are sold, exchanged, or abandoned
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Impairment
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Recognized when the carrying value exceeds the recoverable amount (undiscounted future cash flows).
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Value-in-Use
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Present value of the future cash flows from continued use.
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Taxable Income
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Income subject to tax as reported on the tax return.
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Taxes Payable
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The tax liability based on taxable income as shown on the tax return.
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Income Tax Paid
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The actual cash outflow for taxes paid during the current period.
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Tax loss carryforwards
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losses that could not be deducted on the tax return in the current period but may be used to reduce taxable income and taxes payable in future periods.
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Population Variance |
Sigma^2 = å (R - Rmean)^2 / T
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Sample Variance |
Sigma^2 = å (R - Rmean)^2 / T - 1
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Holding Period Return |
(P1 / P0) - 1 or (P1 + Div / P0) - 1
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Capital Allocation Line
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"Y = (Rmarket - Rfree / sigma) sigma + Rfree
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