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