Exam 1 (Ch. 1-5,15) Flashcards
Current Ratio
Current Assets / Current Liabilities
Quick Ratio
(Current Assets - Inventry) / Current Liabilities
Average Collection Period
Accounts Receivable / (Daily Credit Sales)
Accounts Receivable Turnover
Credit Sales / Accounts Receivable
Inventory Turnover
COGS/Inventory
Total Asset Turnover
Sales/Total Assets
Fixed Asset Turnover
Sales/Fixed Assets
OIROI
Operating Income / Total Assets
Times Interest Earned
EBIT / Interest Expense
Debt Ratio
Total Debt / Total Assets
Return on Assets
Net Income / Total Assets
Return on Equity
Net Income / Total Equity
Net Margin X Tot. Asset Turnover X Leverage Multiplier
Gross Margin
Gross Profit / Sales
Operating Margin
EBIT / Sales
Net Margin
Net Income / Sales
Leverage (Equity) Multiplier
Total Assets / Total Equity
Free Cash Flow to Firm
EBIT – Tax Expense + Depreciation – CapEx – Increase in NWC
Free Cash Flow to Equity
NI + Depreciation – CapEx – Increase in NWC + Increase in LTD
Net Working Capital
Current Assets – Current Liabilities
Costly Capital
All interest bearing Debt + Total Equity
Economic Value Added
NOPAT – WACC X Costly Capital
Return on Invested Capital
NOPAT/Costly Capital
Net Operating Profit After Tax
EBIT X (1 – t)
New Retained Earnings
Old RE + Net Income – Dividends
Old RE + Proj. Sales x Net Margin x (1–Payout Ratio)
Earnings Per Share
Net Income / # of Shares Outstanding
Dividends Per Share
Dividends / # of Shares Outstanding
Discretionary Financing Needed
Proj. Total Assets – ( Proj. Total Liabilities + Proj. Total Equity )
Sustainable Growth Rate
ROE X ( 1 – Payout Ratio )
Payout Ratio
Dividends / Net Income
Retention Ratio ( aka Plowback )
1 – Payout Ratio
Future Value – Lump Sum
PV x (1 + i)^n
