Balance Sheet Flashcards
Assets - Liabilities =
Net Worth
Quick Assets =
Current Assets - Inventory
Working Capital =
Current Assets - Current Liabilities
What is Beta?
Measurement of a stocks volatility as compared to the market as a whole / S&P500
CAPM
Capital Asset Pricing Model
What is Alpha?
Excess over Beta (positive or negative)
Current Assets / Current Liabilities =
Current Ratio
Quick/Acid Test Ratio =
Quick Assets / Current Liabilities
(Quick assets = current assets - liabilities)
Capitalization of a Company =
Equity + Long Term Debt (Bonds)
PE Ratio =
Market Price / Earnings = X years to get back in earnings what I paid
Dividend Payout Ratio =
Dividends / Earnings
After a Dividend is declared, it becomes (company)
A. Current Asset
B. Current Liability
C. Current Yield
D. The earnings
B. Current Liability
Current Yield =
What the investment pays me / cost me
(i.e. Dividend / current market price) or annual interest / cost for a bond
Return on Assets (ROA) =
Net profit / Total Assets
Net Profit Margin =
Net profit / Total Revenue