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11 Cards in this Set
- Front
- Back
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annual report statement financ position income statement cashflows
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ass=libs +sharehold equity assets=investments libs+equity rep how invest made net working cap=cur libs+non cur lib+sharehold equity
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nwc=diff beetween cur assets -cur libs avg tax rate=%income paid in tax tax bill divided by tax income marginal tax rate =tax would pay if earn one more unit of currenvcy use marginal in finance decisions
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cash flow n.b from finance statement not same as nwc cash flows from ass=cash fows to creds +equity invers
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finance statements , how profitable firm is , return on invest , can firm pay div track ternds in salecontrol expenses monitor debt |
liquidity ratios current ratio=current assets/cur libs creditor liduity better shareholder liquidity not as good quick ratio=cur ass-inventory/cur libs cash ratio =cash +cash equiv/cur libs |
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long term solvency ratios total debt ratio, debt toequity ratio , equity multiplier , |
total debt ratio=tot ass-tot equity /tot ass equity multipier =tot ass/tot equity |
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Three efficiency ratios |
Receivable turnover , day sales in receivables , total assets turnover . |
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receivable turnover ratio |
sales/ trade receivables |
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Day sales in receivables ratio |
365/ receivables turnover |
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Total asset turnover ratio |
Sales/ Total Assets |
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Three profitability ratios
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Profit margin, return on assets, return on equity |
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profit margin = |
Present value x 1.09^2 = 68.5k present value x 1.1881= 57,655 k . |
