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19 Cards in this Set
- Front
- Back
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Assets = Liabilities + Stockholder Equity
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Assets = Liabilities + Stockholder Equity
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Earnings per Share
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Net Income / Total shares Outstanding
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Dividends per Share
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Dividends / Total shares outstanding
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balance sheet
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A statement showing a firm's accounting value on a particular date. It reflects the equation, Assets = Liabilities + Stockholders' equity.
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cash flow
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Cash generated by the firm and paid to creditors and shareholders. It can be classified as (1) cash flow from operations, (2) cash flow from changes in fixed assets, and (3) cash flow from changes in net working capital.
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change in net working capital
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Difference between net working capital from one period to another.
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free cash flow
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Cash flow after taxes, interest and all positive NPV opportunities.
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generally accepted accounting principles (GAAP)
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A common set of accounting concepts, standards, and procedures by which financial statements are prepared.
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income statement
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Financial report that summarizes a firm's performance over a specified time period.
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noncash items
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Expense against revenue that does not directly affect cash flow, such as depreciation and deferred taxes.
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operating cash flow
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Earnings before interest and depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.
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total cash flow of the firm
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Total cash inflow minus total cash outflow.
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net working capital
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current assets - current liabilities
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CF(A) = CF(B) + CF(S)
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Cash Flow from Assets = Cash Flow from Debt + Cash Flow from Shareholders
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Capital Spending
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Acquitison of fixed assets - Sale of fixed assets
OR Ending fixed assets - Beginning fixed assets + Depreciation |
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CF(A) > Cash flow from assets
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OCF - Capital Spending - Additions to net working capital = Total Cash flow from Assets
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OCF > Operating Cash Flow
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EBIT (Earnings before interest and taxes) + Depreciation - Current Taxes
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CF(B) > Cash flow from Creditors
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Interest + Retirement of Debt - Proceeds from long term debt sales
OR Interest paid - (Ending long term debt - Beginning long term debt) |
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CF(S) > Cash flow from Stockholders
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Dividends + Repurchase of stock - Proceeds from new stock issue
OR Dividends paid - (Stock sold-Stock repurchased) |
