FINANCIAL ANALYSIS II Flashcards
DuPont (original)
ROE = (net profit margin)(asset turnover)(leverage ratio)
Net profit margin
net income / revenue
Asset turnover
revenue / average total assets
Leverage ratio
total assets / shareholder’s equity
DuPont (extended)
(net income / EBT) * (EBT/EBIT) * (EBIT/revenue) * (revenue / total assets) * (total assets / total equity)
Basic EPS
(net income - preferred dividends) / weighted average common stock outstanding
Diluted EPS numerator
(net income - preferred dividends) + convertible preferred dividends + (convertible debt interest * (1-tax rate))
Diluted EPS denominator
Weighted average shares + shares from conversion + shares from issuable stock options
Coefficient of variation of sales
standard deviation of sales / average sales
Coefficient of variation operating income
standard deviation of operating income / average operating income
Coefficient of variation of net income
standard deviation of net income / average net income
Ending inventor
beginning inventory + purchases - COGS
DDB depreciation
(2/useful life) * (cost - accumulated depreciation)
Straight-line depreciation
(cost - salvage value) / useful life
Income tax expense
taxes payable + change in deferred tax liability - change in deferred tax asset
