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14 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Return on Equity (ROE) = |
Net income / Avg shareholders equity |
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Drivers of ROE |
1. Operating performance (Roa) A) ROS B) ATO 2. Financial leverage |
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Return on asset (ROA) = |
De-Levered Net income / avg assets |
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Return on Sale (ROS) = |
De-Levered Net income / Sales |
Profitability |
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Asset turnover (ATO) = |
Sales / Avg Assets |
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De-Levered net income = |
Net income + (1- tax rate) * interest expense |
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Gross Margin Ratio = |
(Sales -Cogs) / sales Or Gross profit / sales |
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SG&A to Sales = |
SG&A / Sales |
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Operating Margin = |
Operating Income / Sales |
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Interest expense to Sales = |
Interest expense / sales |
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Effective tax rate = |
Income taxes / pre-tax income |
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Account receivable turnover = |
Sales / Avg account receivable |
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Inventory turnover = |
Cogs / Avg inventory |
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Account payable turnover = |
Purchases / Avg account payables |
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