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32 Cards in this Set

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