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25 Cards in this Set
- Front
- Back
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Current Ratio |
CA / CL Measures a company's ability to pay short-term obligations with short-term assets Higher = Better <0.7 Illiquid >2.0 Too Liquid |
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QUICK RATIO (Acid-Test) |
(CA – Inv.) / CL Indicator that determines whether or not firm can cover short-term liabilities without selling inventory Higher = Better |
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GROSS MARGIN |
SALES – COGS / SALES higher=better |
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ROS |
Net Income / Sales Higher = better |
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ROA |
Net Income / TA Higher = Better |
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ROE |
(Net Income – PSD) / Common Equity Higher = better |
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DSO |
Accounts Rec / (Sales / 360) Measures average days to collect cash after sale is made Lower = generally better |
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ICD |
Inventory / (COGS/360) Measures amount of days raw materials is converted into a sale Lower = better |
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APD |
Acc Payable / (COGS/360) Measures amount of days taken to pay suppliers Higher = generally better |
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CCC |
DSO + ICD – ACP Days to turn raw materials to sale + Days to receive cash after sale – Days to pay supplier Lower = Better (negative is good) |
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RECEIVABLE TURNOVER |
TOTAL REV / ACC RECEIVABLE =360/DSO Higher = better |
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INVENTORY TURNOVER |
COGS / INV = 360/ICD high = strong sales or ineffective buying low = unhealthy high inv levels |
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TOTAL ASSET TURNOVER |
TOTAL REV / TA Indicates pricing strat, HIGH = low profit margins LOW = high proft margins |
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EQUITY MULTIPLIER |
TA / TE Higher = more debt used as leverage |
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DEBT / ASSETS |
TL / TA HIGHER = MORE RISK ASSUMED |
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DEBT / EQUITY |
TL / TE NORMAL = 1 ~9 = means they're a bank |
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TIE |
EBIT / Interest Expense Higher = better LOW = either big debt or high int. rate |
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EPS |
(Net Income – PSD) / Weighted Common Shares Outstanding Growth Rate is IMPT Do not use to compare 2 comp |
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DPS |
Dividends Paid / Weighted Common Shares Outstanding |
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DIVIDEND YIELD |
DPS / Price Per Share For shareholders |
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DIVIDEND PAYOUT |
DPS / EPS Shows how much of % of earnings were paid out as dividends |
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PE |
Price Per Share / EPS means Price Earnings 15 = cheap 20 = normal 45 = expensive How much you pay to get $1 of earnings |
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PRICE TO BOOK |
Price Per Share / BV Per Share Use Tot. Owners Equity / Share to get BV Per Share Image, Patents, Customer Rel., Copyrights, Trademarks are not included in BV unless bought |
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MARKET CAPITALIZATION |
Price Per Share * Common Stock Shares Outstanding |
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DUPONT EQUATION IS? |
ROE = Equity Multiplier * TA T/O * ROS |
