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24 Cards in this Set
- Front
- Back
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Current Ratio |
Current Assets/Current Liabilities *ability to pay short term debt |
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Inventory Turnover |
COGS/Inventory *Measures liquidity and control of inventory |
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Debt Ratio |
Long Term Debt/Total Long Term Capital *measures proportion of capital supplied by creditors |
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Leverage Ratio (LEV) |
Total Assets/Total Equity how many dollars of assets firm utilizes for each dollar of contributed equity |
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Times interest earned ratio |
EBIT/Interest ($$) *ability to make interest payments |
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Quick Ratio (acid test) |
Current assets - inventory / current liabilities *immediate short term liquidity |
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Net Profit Margin |
net income / revenue *earnings generated per dollar of sales |
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Return on Assets (ROA) |
net income / total assets *profitability of the use to which assets are used |
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Return on Equity (ROE) |
net income / total equity *profits accruing to shareholders per dollar of contributed equity |
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Gross Profit Margin |
revenue - COGS / revenue *product pricing in comparison with basic cost |
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Earning Power (OIROI) |
EBIT / total assets *profitability of firm's assets independent of leverage and tax effects |
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Days Sales Outstanding |
AR / annual revenue > 360
*liquidity and control of receivables |
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Assets Turnover |
revenues / total assets *sales generated per dollar of assets |
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Earnings per Share (EPS) |
net income / # of shares *expresses profits on a per share basis |
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Book Value per Share (BVPS) |
total equity / # of shares *expresses capital contributed by shareholders on per share basis |
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Dividend per Share (DPS) |
total dividends / # of shares *amount paid as dividends to each share of stock |
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Price Earnings ratio (P/E) |
market price per share / EPS *expresses stock value as multiple of last year's earnings |
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Price to Book (P/B) |
market price per share / book value per share *expresses stock prices as a multiple of equity holders' historical contributions to capital |
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AR Turnover |
(sales/AR) / 365 *collection time |
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DuPont Model |
Net Profit Margin x Asset Turnover x LEV *how does the firm generate ROE |
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Discretionary Financing Need (DFN) |
Assets - Liabilities - Equity |
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Sustainable Growth Rate (SGR) |
ROE / (1-b) =(NI/S) x (S/A) x (A/E) x (1-b) b= dividend payout ratio/retention rate =(NI/E)(1-b) |
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Effective Yield (%) |
(FV / PV) - 1 |
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PV of Perpetuity |
=PMT/Rate |
