F2 M8 Flashcards
Ratio and Variance Analysis
gross profit margin
net sales - COGS/net sales
profit margin
net income/net sales
return on sales
income before interest income, interest expense, and taxes/net sales
return on assets
net income/average total assets
dupont return on assets
profit margin * asset turnover
return on equity
net income/average total equity
operating cash flow ratio
cash flow from operations/current liabilities
current ratio
current assets/current liabilities
quick ratio
cash and cash equiv. + St marketable securities + net receivable/current liabilities
AR turnover
net sales/average net AR
days sales in AR
ending net AR/net sales/365
inventory turnover
COGS/average inventory
days in inventory
ending inventory/COGS/365
AP turnover
COGS/average AP
days of payables outstanding
ending AP/COGS/365
cash conversion cycle
days sales in AR + days in inventory - days of payables outstanding
debt to equity ratio
total liabilities/total equity
total debt ratio
total liabilities/total assets
equity multiplier
total assets/total equity
times interest earned
income before interest expense and taxes/ total equity
calculating EBITDA (two ways)
1) Sales - COGS - Operating expenses
2) Net income + income tax expense + interest expense + depreciation and amortization
EPS
income available to common shareholders/weighted average common shares outstanding
price to earnings ratio
price per share/basic earnings per share
dividend payout
cash dividends/net income
asset turnover
net sales/average total assets
