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37 Cards in this Set
- Front
- Back
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Receivables Turnover
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Annual Sales/ Average Receivables
(A) |
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Days of Sales Oustanding
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(A)
365/Receivables Turnover |
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Inventory Turnover
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COGS/ avg. inventory
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Days of Inventory on Hand
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365/ inventory turnover
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payables turnover
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purchases/ avg. trade payables
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number of days of payables
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365/ payables turnover ratio
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total asset turnover
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revenue/ avg total assets
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fixed asset turnover
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revenue/ avg. net fixed assets
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current ratio
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current assets/ current liabilities
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quick ratio
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cash + marketable securities+ receivables/ current liabilities
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cash ratio
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cash + marketable securities/ current liabilities
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defensive interval
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cash+marketable securities+ receivables/ avg. daily expenditures
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Cash Conversion Cycle
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(days sales outstanding) + (days of inventory on hand) - (number of days of payables)
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Debt to Equity
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total debt/ SE
(Dbs) |
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Debt to Capital
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total debt/ total debt+ total SE
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financial leverage
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avg total assets/ avg. total equity
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interest coverage
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ebit/ interest payments
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fixed charge coverage
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ebit + lease payments/
interest payments+ lease payments |
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Net Profit Margin
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net income/ revenue
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Gross Profits
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Net Sales- COGS
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Operating Profits
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EBIT
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Net Income
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Earnings after taxes but before dividends
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Total Capital
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Long term debt + short term debt + common and preferred equity
= Total Assets |
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Gross Profit Margin
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Gross Profit/ Revenue
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Operating Profit Margin
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operating income/ revenue
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Pretax Margin
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EBT/Revenue
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ROA (1)
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net income/ avg. total assets
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ROA (2)
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net income + interest expense (1-tax rate)/ Avg. total assets
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Operating return on assets
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Operating Income (EBIT)/ Avg total assets
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ROTC
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EBIT/ avg. total capital
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ROE
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net income/ avg. total equity
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return on common equity
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net income- preferred dividends/
avg. common equity |
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Dupont System of Analysis
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approach used to analyze return on equity two variants original three part approach and the extended 5 part
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Return On Equity (1)
Dupont Y'all |
(NI/Sales)(Sales/Assets)(Assets/Equity)
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Return on Equity (2)
Dupont Y'all |
(net profit margin)(asset turnover)(leverage ratio)
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What does low ROE mean
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a. Company has poor profit margin
b. poor asset turnover c. too little leverage |
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Extended (5 way) Dupont
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(Net Income/EBT)(EBT/EBIT)(EBIT/Revenue)(revenue/total assets)(total assets/total equity)
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