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37 Cards in this Set

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