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### 40 Cards in this Set

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 Four (4) Categories of Financial Ratios Profitability, Asset Utilization, Liquidity, Financial Leverage List Three (3) Profitibality Ratios Profit Margin (PM), Return on Assets (ROA), Return on Equity (ROE) List Four (4) Asset Utilization Ratios Receivables Turnover (Rt), Average Collection Period (Avg(ARCP)), Inventory Turnover (It), Total Asset Turnover (TAT) List One (2) Liquidity Ratios Current Ratio, Quick Ratio List Three (3) Financial Leverage Ratios Debt to Equity, Equity Multiplier (Em), Debt Ratio What is the Simplified Dupont Identity? ROA = PM x TAT What is the Dupont Identity When Sales are considered in the equation? ROA = NI/Sales x Sales/Assets What is the Extended Dupont Identity? ROA = NI/Sales x Sales/Assets x Assets/Equity What is the entire Dupont System of Analysis? (NI/Sales) = PM (Sales/Assets) = TAT PM * TAT = ROA Debt/Assets = Financial Plan (FP) ROA/(1 - FP) = ROE How is Profit Margin Profitabilty Ratio Calculated? NI/Sales How is ROA Profitability Ratio Calculated? NI/Assets How is ROE Profitability Ratio Calculated? NI/Equity How is Receivables Turnover (Rt) Asset Utilitization Ratio Calculated? Sales/AR How is Avg Collection Period (ACP) Asset Utilization Ratio Calculated? AR/(Sales/365) How is Inventory Turnover (It) Asset Utilization Turnover Ratio Calculated? Sales/Inventory How is Total Asset Turnover (TAT) Asset Utilization Turnover calculated? TAT = Sales/Assets How is Current Liquidity Ratio calculated? CurRatio = CurAssets/CurLiabiliities How is the Quick Liquidity Ratio calculated? QuickRatio = (CurAssets - Inventory)/CurLiabilities How is Debt to Equity Financial Leverage Ratio calculated? (Lia/Equity) How is the Equity Multiplier (Em) Financial Leverage Ratio calculated? Em = Assets / Equity How is the Debt Ratio (a Financial Leverage Ratio) calculated? DebtRatio = Liabilities / Assets How is the Depreciation Tax Shield calculated? TaxShield = (Depreciation) x (Tax Rate) What is Net Operating Cash Flow (NOCF)? Cash flow resulting from day to day operations. This is the cash flow before capital expenditures and dividends are paid. How is Net Operating Cash Flow (NOCF) calculated? Net Income = (+Revenues -Expenses -depreciation -Interest -Taxes) Net Income + Depreciation - (+/-)NWC How is Net Income calculated? Net Income = +Revenues -Expenses -depreciation -Interest -Taxes What is Free Cash Flow (FCF)? Free Cash Flow (FCF) is the cash flows available after neccessary capital expenditures, and dividends have been paid. Free Cash Flow is cash flow available for investment/growth. How is FV Calculated? FV = PV x (1 + i)^n How is PV calculated? PV = FV / (1 + i)^n How is (n) calculated? n = [ln(FV/PV)] / [ln(1 + i)] How is (i) calculated? i = [(FV/PV)^1/n] - 1 How is the Periodic Rate (i) Calculated in terms of APR? i = APR/m How is the Periodic Rate (i) calculated in terms of EAR? i = [(1 + EAR)^(1/m)] - 1 An Increase to an Asset Account is a Use or Source of cash? Use An Increase to a Liabilities Account is a Use or Source of cash? Source An Increase to an Equity Account is a Use or Source of cash? Source A Decrease to an Asset Account is a Use or Source of cash? Source A Decrease to a Liabilities Account is a Use or Source of cash? Use A Decrease to an Equity Account is a Use or Source of cash? Use How is the Present Values of an Annuity Calculated (PVA)? PVA = A x [ (1 - 1/((1+i)^n) ) / i ] How is the Present Value of a Perpetuity calculated? (PVP) PVP = A/i