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32 Cards in this Set
- Front
- Back
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receivables turnover
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receivable turnover = (annual sales) / (average receivables)
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days of sales outstanding
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days of sales outstanding = (365) / (receivables turnover)
average collection period |
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inventory turnover
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inventory turnover = (COGS) / (avg. inventory)
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days of inventory on hand
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days of inventory on hand = (365) / (inventory turnover)
avg inventory processing period |
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payables turnover
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payables turnover = (purchases) / (avg trade payables)
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number of days of payables
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number of days of payables = (365) / (payables turnover)
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total asset turnover
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total asset turnover = (revenue) / (avg total assets)
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fixed asset turnover
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fixed asset turnover = (revenue) / (avg net fixed assets)
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working capital turnover
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working capital turnover = (revenue) / (avg working capital)
working capital = CA - CL |
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current ratio
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current ratio = CA / CL
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quick ratio
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quick ratio = (cash + marketable securities + receivables) / CL
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cash ratio
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cash ratio = (cash + marketable securities) / CL
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cash conversion cycle
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cash conversion cycle = (days sales outstanding) + (days of inventory on hand) - (number of days of payables)
high cash conversion cycle is undesirable |
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debt to equity
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debt to equity = (total debt) / (total shareholders' equity)
total debt = (long term debt + interest bearing short term debt) |
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debt to capital
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debt to capital = (total debt) / (total debt) + (total shareholders' equity)
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debt to assets
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debt to assets = (total debt) / (total assets)
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financial leverage
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financial leverage = (avg total assets) / (avg total equity)
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interest coverage
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interest coverage = (EBIT) / (interest payments)
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fixed charge coverage
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fixed charge coverage = (EBIT + lease payments) / (interest payments + lease payments)
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net profit margin
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net profit margin = (NI) / (Revenue)
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gross profits
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gross profits = net sales - COGS
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operating profits
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operating profits = EBIT
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net income
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net income = earnings after taxes but before dividends
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total capital
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total capital = long term debt + short term debt + common and preferred equity
or total capital = total assets |
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gross profit margin
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gross profit margin = (gross profit) / revenue
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operating profit margin
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operating profit margin = operating income / revenue
or EBIT / revenue |
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pretax margin
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pretax margin = EBT / revenue
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ROA
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ROA = net income / avg total assets
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operating return on assets
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operating return on assets = (operating income) / (average total assets)
or (EBIT) / (average total assets) |
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return on total capital
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ROTC = EBIT / avg total capital
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ROE
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ROE = NI / avg total equity
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return on common equity
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return on common equity = NI - pref. dividends / avg common equity
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