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31 Cards in this Set
- Front
- Back
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Current Ratio
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current assets/current liabilities
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quick ratio (Acid Test)
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(current assets-inventory)/current liabilities
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Avg. Collection Period
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AR/daily credit sales (Will tell the avg. # of days it takes to collect)
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AR turnover
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credit sales/AR (tells you the # of times a year the AR turns)
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Inventory turnover
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COGS/Inventory
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Total Asset Turnover
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sales/total assets
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Fixed Asset Turnover
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sales/fixed assets
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Oper. Income ROI
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operating income/total assets
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debt ratio
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total debt/total assets
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times interest earned
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EBIT/interest expense
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ROA
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NI/total assets
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ROE
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NI/total equity
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Gross Margin
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Gross Profit/sales
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operating margin
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EBIT/sales
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net margin
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NI/sales
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Dupont Decomposition (ROE)
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Net Profit Margin x Asset Turnover x Leverage Multiplier
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Dupont Decomposition (ROE)
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Net Profit Margin x Asset Turnover x Leverage Multiplier
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New RE=
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Old RE + NI - Div
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CFO=
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NI + Depr. + Decrease AR - Increase Inv. - Decrease AP
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Daily Credit Sales
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Total Sales/365
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Dividend Payout Ratio
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Div/NI
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Plowback Ratio
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1 - Payout Ratio
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DFN
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Projected Total Assets - Projected Total Liabilities - Projected Owner's Equity
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Sustainable Growth Rate
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ROE x (1-b) [plowback ratio, where b=dividends/NI]
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Present Value of a Perpetuity
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PMT/i
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Value (price of preferred stock)
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D (annual fixed dividend) / k (discount rate of required rate of return)
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Value at time 0 (of common stock)
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Dividend Paid at time 1 / (required rate of return - constant growth rate of dividend)
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CAPM
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Ri = Rfree + B(Expected Return - Risk Free Rate)
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DOL
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(Sales - Variable Costs) / EBIT
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DFL
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EBIT / (EBIT - I)
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DCL
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(Sales - Variable Costs) / (EBIT - I) OR DOL x DFL
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