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40 Cards in this Set

  • Front
  • Back
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?
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
Debt/Assets = Financial Plan (FP)
ROA/(1 - FP) = ROE
How is Profit Margin Profitabilty Ratio Calculated?
How is ROA Profitability Ratio Calculated?
How is ROE Profitability Ratio Calculated?
How is Receivables Turnover (Rt) Asset Utilitization Ratio Calculated?
How is Avg Collection Period (ACP) Asset Utilization Ratio Calculated?
How is Inventory Turnover (It) Asset Utilization Turnover Ratio Calculated?
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?
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?
An Increase to a Liabilities Account is a Use or Source of cash?
An Increase to an Equity Account is a Use or Source of cash?
A Decrease to an Asset Account is a Use or Source of cash?
A Decrease to a Liabilities Account is a Use or Source of cash?
A Decrease to an Equity Account is a Use or Source of cash?
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