Finance Flashcards

1
Q

Wynkoop Brewing Company

A

Russ Schehrer, John Hickenlooper, Jerry Williams founded in 1988 LoDo. Start ups is created well produce- value for founders and investors, employment, utility and satisfaction for customers, benefits society overall

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2
Q

start ups need..

A

funding, lots of capital due to cash burn

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3
Q

net profit margin

A

Net income/sales

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4
Q

asset turnover

A

sales/total assets

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5
Q

return on assets

A

net income/ total assets

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6
Q

equity multiplier

A

total assets/total equity

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7
Q

return on equity (ROE)

A

net income/total equity
or
PROFIT MARGIN x TAT(AT) x EQUITY MULT.

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8
Q

gross profit margin

A

gross profit/sales

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9
Q

operating profit margin

A

EBIT/ sales

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10
Q

current ratio

A

current assets/current liabilites

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11
Q

quick ratio

A

current assets-inventory/ current liabilities

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12
Q

A/R turnover

A

sales/ A/R

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13
Q

DSO

A

365/ A/R turnover

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14
Q

inventory turnover

A

COGS/inventory

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15
Q

PP&E turnover

A

sales/net fixed assets

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16
Q

total debt ratio

A

total assets-total equity/ total assets

17
Q

debt to equity ratio

A

total debt/ total equity

18
Q

long term debt to capital

A

long term debt/long term debt+total equity

19
Q

times interest earned

A

EBIT/interest expense

20
Q

profit margin

A

net income/sales

21
Q

total asset turnover

A

sales/ total assets

22
Q

Net working captial

A

CA-CL
THEN
CA=CL+NWC

23
Q

Net income

A

sales x profit margin

24
Q

Return of assets (ROA)

A

net income/ assets

25
Q

total equity

A

assest - debt

26
Q

receivables turnover

A

Sales/ A/R

27
Q

days sales in receivables

A

365/ turnover

28
Q

internal growth rate

A
  1. calculate plow back ratio= b=1-payout ratio

2. IGR- (ROA x b)/ [1-(ROA x b)]