Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
|
Total Asset Turnover |
Sales / Average Total Assets
|
|
|
Property, Plant & Equipment Turnover (PPE)
|
Sales / Average Property, Plant & Equipment
|
|
|
Accounts Receivable Turnover
|
Sales / Average Accounts Receivable
|
|
|
Cash Turnover
|
Sales / Average Cash & Cash Equivalents
|
|
|
Working Capital Turnover
|
Sales / Average Working Capital
Working Capital = Current A - Current L |
|
|
Inventory Turnover
|
COGS / Average Inventory
|
|
|
Current Ratio
|
Current Assets / Current Liabilities
|
|
|
Acid-Test Ratio
|
Cash & Cash Equivalents + Marketable Securities + A/R / Current Liabilities
|
|
|
Collection Period
|
Average Accounts Receivable / Sales / 360
|
|
|
Days to Sell Inventory
|
Average Inventory / COGS / 360
|
|
|
Operating Profit Margin (Pre-Tax)
|
Income from Operations / Sales
|
|
|
Gross Profit Margin
|
Sales - COGS / Sales
|
|
|
Net Profit Margin
|
Net Income / Sales
|
|
|
Return on Assets
|
Net Income + Interest Expense x (1 - tax rate) / Average Total Assets
it it is also called adjusted ROA
net income/ avg total asset |
|
|
Return on Common Equity
|
Net Income / Average Stockholder's Equity
|
|
|
Price to Book
|
Market Price Per Share / Book Value Per Share
|
|
|
Price to Earnings
|
Market Price Per Share / EPS
|
|
|
Earnings Yield
|
EPS / Market Price Per Share
|
|
|
Dividend Payout Rate
|
Cash Dividends Per Share / EPS
|
|
|
Dividend Yield
|
Cash Dividends Per Share / Market Price Per Share
|
|
|
Earnings Per Share (EPS)
|
Net Income - Preferred Stock Dividend / Average # of Common Stock Outstanding
|
|
|
Times Interest Earned
|
Income Before Income Taxes + Interest Expense / Interest Expense
|
|
|
Total Debt to Equity
|
Total Liabilities / Stockholder's Equity
|
|
|
Long Term Debt to Equity
|
Long Term Liabilities / Stockholder's Equity
|
|
|
Stock Multiple
|
P / EPS = M
Where P - Company Stock Price EPS - Earnings Per Share M - Stock Multiple |
|
|
Return on Equity
|
Net Income - Preferred Stock Dividends / Average Common Equity
|
|
|
Defensive interval ratio |
It measures how long company can continue to meet its daily expenses from its existing liquid asset without requiring any additional financing.
Cash + short term marketable investment + receivable / daily cash expenditure
|
|
|
Cash conversion cycle |
It measure the length of period between the point that a company invest in WC rand the point that the company collect the sale proceed from the sale.
DSO DOH number of days of |
|
|
Debt to asset |
Measure portion of the firms asset that have been financed by debt.
Total debt / ( total debt + shareholder equity) |
|
|
Debt to capital |
Measure the portion of company total capital that is composed of debt.
Total debt/ ( total debt + shareholder equity) |
|
|
Fixed charge coverage ratio |
It relates the fix charges or obligations of the company to its earning.
It ,erasure the number of times a company s operating can cover its interest and lease payment.
EBIT + Lease payment / ( interest + lease payment) |
|
|
Where are below the line item adjustment item for tax and preferred dividend? |
EAT - below the line item adjustment for tax ------------ net income - preferred dividend ---------- income available to common shareholder |
|
|
Tax burden |
It measures the portion of its pretax profit a company gets to keep. = 1 - average tax rate
higher tax ration implies company gets to keep higher percentage of pretax profit.
|
|
|
Interest burden |
Capture the effect of interest expense on ROE. High borrowing costs reduces ROE. |
|
|
Diluted EPS |
Adjusted income available for ordinary shears reflecting conversion of dilutive securities/ -------------------
weighted average number if ordinary and potential ordinary shares outstanding |
|
|
Retention ration and Sustainable growth rate |
Retention rate = 1 - Dividend payout ratio
Retention rate * ROE |
|
|
Credit risk |
Is the risk of loss that is caused by a debtor failure to make a promised payment. Credit analysis is the evaluation of credit risk |
