1 - Financial Reporting Flashcards
EPS
income available to common shareholders divided by weighted-average common shares outstanding
Dividend yield
dividends per common share divided by market price per common share
Price-earnings ratio (P/E)
market price of the stock/earnings per share
Average collection period for AR
365 days/AR turnover(net sales/avg AR)
Asset Turnover Ratio
Net Sales/Avg Total Assets
Inventory turnover
COGS/Avg inventory
Return on SHE
Net income/avg she
Current Ratio
Current Assets/Current liabilities
Quick Ratio (Acid-Test Ratio)
(Current Assets-Inventory)/Current liabilities
Debt-to-Equity Ratio
Total Liabilities/Shareholders’ Equity
Interest Coverage Ratio
Earnings Before Interest and taxes (EBIT)/Interest expense
Net Profit margin
Net income/Revenue
Return on Assets (ROA)
Net income/Total assets
Return on Equity (ROE)
Net income/Shareholders’ Equity or
Profit margin x asset turnover x leverage
(SHE includes Common stock plus RE)
Gross Profit Margin
(Gross Profit/Revenue) x 100
Return on Sales (Operating Profit Margin)
(Operating profit/Revenue) x 100
Large accelerated filers with SEC
market values exceeding $700,000,000
must file 10Q within 40 days
Accelerated filers with SEC
market values between $75,000,000-$700,000,000
must file 10Q within 40 days
Non-accelerated (small) filers
market values below $75,000,000
must file 10Q within 45 days
Cash flow cycle
Avg age of inventory+avg age of AR-avg age of AP
Dividends received
Is not an investing activity
Defensive interval ratio
Current assets / daily operating expenses
(liquidity)
Cash basis income
higher when AR decrease
lower when accrued expenses decrease
Stock value
Dividend per share/(annual required rate of return-Dividend growth rate)
Sustainable equity growth rate (SEGR)
Return on equity x (1-dividend payout ratio)
Times Interest earned
EBIT/Interest expense
Integrated planning
Levels of interdependence
1. Pooled
2. Sequential
3. Reciprocal
