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Financial Accounting Reporting > F2 M8 > Flashcards

F2 M8 Flashcards

Ratio and Variance Analysis

1
Q

gross profit margin

A

net sales - COGS/net sales

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2
Q

profit margin

A

net income/net sales

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3
Q

return on sales

A

income before interest income, interest expense, and taxes/net sales

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4
Q

return on assets

A

net income/average total assets

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5
Q

dupont return on assets

A

profit margin * asset turnover

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6
Q

return on equity

A

net income/average total equity

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7
Q

operating cash flow ratio

A

cash flow from operations/current liabilities

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8
Q

current ratio

A

current assets/current liabilities

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9
Q

quick ratio

A

cash and cash equiv. + St marketable securities + net receivable/current liabilities

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10
Q

AR turnover

A

net sales/average net AR

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11
Q

days sales in AR

A

ending net AR/net sales/365

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12
Q

inventory turnover

A

COGS/average inventory

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13
Q

days in inventory

A

ending inventory/COGS/365

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14
Q

AP turnover

A

COGS/average AP

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15
Q

days of payables outstanding

A

ending AP/COGS/365

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16
Q

cash conversion cycle

A

days sales in AR + days in inventory - days of payables outstanding

17
Q

debt to equity ratio

A

total liabilities/total equity

18
Q

total debt ratio

A

total liabilities/total assets

19
Q

equity multiplier

A

total assets/total equity

20
Q

times interest earned

A

income before interest expense and taxes/ total equity

21
Q

calculating EBITDA (two ways)

A

1) Sales - COGS - Operating expenses
2) Net income + income tax expense + interest expense + depreciation and amortization

22
Q

EPS

A

income available to common shareholders/weighted average common shares outstanding

23
Q

price to earnings ratio

A

price per share/basic earnings per share

24
Q

dividend payout

A

cash dividends/net income

25
Q

asset turnover

A

net sales/average total assets

Financial Accounting Reporting (34 decks)

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