Chapter 1 & 2 Flashcards

1
Q

Calculate EBIT

A

Revenues - Costs - Depreciation

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2
Q

Calculate Taxable Income

A

EBIT - Interest expense

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3
Q

Calculate Net Income

A

Taxable Income - Taxes

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4
Q

Calculate Market value of Equity

A

Stock Price * Shares outstanding

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5
Q

Calculate Book value of Equity

A

-

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6
Q

Calculate Market to book ratio

A

Market value of equity / Book value of equity

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7
Q

Calcylate EVA

A

(After tax interest + Net income ) - (Cost of capital * Capital)

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8
Q

Calculate ROC

A

(After tax interest + net income ) / Total Capital

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9
Q

Calculate ROE

A

Net income / Equity

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10
Q

Calculate ROA

A

After tax interest + net income / Total Assets

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11
Q

Calculate Asset Turnover (efficiency ratio)

A

Sales / Total assets at start of the year

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12
Q

Calculate Inventory Turnover (Efficiency Ratio)

A

Cost of goods sold / Inventory at start of year

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13
Q

Calculate “Days in inventory” (Efficiency Ratio)

A

Inventory at start of the year / Daily cost of goods solds

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14
Q

Calculate Receivables turnover (Efficiency Ratio)

A

Sales / Receivables at start of the year

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15
Q

Calculate average collection period (Efficiency Ratio)

A

Receivables at start of the year / Daily sales

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16
Q

Calculate Profit Margin (Efficiency Ratio)

A

Net income / Sales

17
Q

Calculate Operating Profit margin (Efficiency Ratio)

A

(Net income + AFter tax interest ) / Sales

18
Q

Calculate Long term Debt Ratio (Leverage Measure)

A

Long term debt / (Long term debt + equity)

19
Q

Calculate Long term debt equity ratio(Leverage Measure)

A

Long term debt / Equity

20
Q

Calculate Total Debt Ratio (Leverage Measure)

A

Total Liabilites / Total Assets

21
Q

Calculate Times-Interest-Ratio (Leverage Measure)

A

EBIT / Interest Payments

22
Q

Calculate Cash Coverage Ratio (Leverage Measure)

A

(EBIT + Depreciation ) / Interest Payments

23
Q

Calculate Net-Working-Capital-To-Total-Assets (Liquidity Ratio)

A

Net Working Capital / Total Assets

24
Q

Current Ratio

A

Current assets / Current liabilities

25
Q

Calculate Quick Ratio (Liquidity Ratio)

A

(Cash + Marketable Securities + Receivables ) / Current Liabilities

26
Q

Calculate Cash Ratio(Liquidity Ratio)

A

(Cash + Marketable Securities) / Current Liabilities