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32 Cards in this Set
- Front
- Back
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ROE
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NI/Avg SE
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Return on Common Equity
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(NI - P/S/ Dividends) / (Avg TA)
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Return on Total Capital
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(NI + Int. Expense(1-t))/Avg (STD+LTD+SE)
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ROA
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(NI + Int. Expense(1-t))/Avg TA
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Profit Margin
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NI/Sales
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Asset Turnover
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Sales/TA
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Leverage
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Avg TA / Avg SE
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ROE Dupont
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NI/Sales x Sales/Avg TA x Avg TA /Avg SE
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ROA Dupont
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(NI + Int. Expense(1-t))/Sales x Sales/Avg TA
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Gross Profit Margin
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(Sales-COGS)/Sales
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Operating PM
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(EBIT-Int. Income - Misc. Income)/Sales
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Pre Tax Margin
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EBT/Sales
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EBITDA Margin
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EBITDA/Sales
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Net Operating Profit After Tax Margin
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(NI + (Int Exp - Int Income)(1-t))/Sales
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Contribution Margin
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(Sales - VCs)/Sales
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Asset Turnover
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Sales/Avg TA
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CA Turnover
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Sales/Avg CA
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Working Capital Turnover
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Sales/Avg WC
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AR Turnover
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Sales/Avg AR
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Inventory Turnover
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COGS/Avg Inv
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AP Turnover
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Purchase of Inv/Avg AP
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Fixed Asset Turnover
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Sales/AVG Net PP&E
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Operating Cycle
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# days to sell inventory + collect AR
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To turn turnover ratio into # of days outstanding
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365/turnover
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Current Ratio
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CA/CL
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Quick Ratio
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Cash + MS+AR/CL
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Debt to Total Assets
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(STD+LTD)/TA
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Debt to Equity
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(STD+LTD)/SE
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Interest Coverage
What do you want it at? |
EBIT/Int Expense
Over 4! You're cutting it close around 2. |
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Altman Model Cutoffs for Private Firms
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Private: Less than 1.81 High prob of bankrupt
Greater than 3, low probablility of bankrupt |
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Altman Model Cutoffs for Service Firms
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Less than 1.10 = high prob of bankrupt
Greater than 2.6 = low prob of bankrupt. |
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Capital Lease Criteria. at least 1 must apply.
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1.leasor transfers ownership of property to lesee
2. lease contains (bargain purchase option) 3. lease term greater than or equal to 75% of estimated useful life. 4. PV minimum lease payments greater than or equal to 90% FV of asset. |
