Fin part 2: Quan Flashcards
Profit Margin
NIAT/ Sales
ROA: Return on Assets
-Net Income/ Total Assets
-Net Income/ Sales * Sales/Total Asset
ROE: Return on Equity
Net Income/ Stockholder’s Equity (Total Debt -Debt = Equity)
Acct Receivables Turnover(ART):
-Sales/ Receivables
Average Collection Period (ACP)
Acct Recievable/ Avg Daily Credit Sales
Inventory Turnover (IT)
Sales/ Inventory
Fixed Asset Turnover(FAT)
Sales/Fixed Assets
Total Asset Turnover (AT)
Sales/Total Assets
Current Ratio (CR)
Current Assets/ Current Liabilities
Quick Ratio
Current Assets - Inventory/ Current Liabilities
Debt Ratio (DR)
Total Debt/ Total Assets
Times Interest Earned
EBIT/ I
Par Value
Common Stock Acct/ # of Shares Outstanding
Original Issue Price
Common Stock Acct + PD in Capital/ # of Shares
Stock Price
P/E = Market Price of Stock / Earnings per Share
How much will Depreciation expense reduce taxes?
-DEPRECIATION IS A TAX DEDUCTIBLE EXPENSE, SO EVERY DOLLAR IN DEPRECIATION REDUCES TAXABLE INCOME
-Ex: DE : 1000 ; Tax Rate: 40%
-DEPR of $1000 would reduce taxes by $400 dollars ($1000*.4)
Cost After Tax
THE COSTAT = COSTBT (1 – t) WHERE t = TAX RATE
Rate After Tax
THE RATEAT = RATEBT (1 - t) WHERE t = TAX RATE
After Tax Interest Rate
BEFORE TAX INTEREST RATE (1-t)
Net Worth Capital
CURRENT ASSESTS – CURRENT LIABILITIES
Current Liabilities
(TD + E) – (LTD + E)
Current Assets
TOTAL ASSETS – LTA
Equity
Total Asset – DEBT
TIER
(Tier 1 capital + Tier 2 capital) / Risk-Weighted Assets
TA Turnover
Concurrent Assets + Current Assets
AR Turnover
Net Credit Sales/ Avg Acct Receivable
Break Even (BE) units
FC/(P – VC per unit)
Break Even (BE) dollars
FC / (1 – VC/SALES)
DOL
(S – VC) / (S – VC – FC)
DFL
EBIT / (EBIT – I)
DCL
(S – VC) / (S – VC – FC – I)
EPS
NIAT / # COMMON SHARES OUTSTD
