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CFA Level I > Financial Ratios > Flashcards

Financial Ratios Flashcards

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CFA flashcards
1
Q

Activity Ratios

A

measure how efficiently a company performs day-to-day tasks

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2
Q

Liquidity Ratios

A

measure ability to meet short term obligations

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3
Q

Solvency Ratios

A

measure ability to measure long term obligations

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4
Q

Profitability Ratios

A

measure ability to generate profits from its resources

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5
Q

Valuation

A

measure quantity of an assets or flow associated with ownership of a specified claims

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6
Q

Inventory Turnover

A

cost of sales / average inventory; activity ratio

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7
Q

Days of Inventory on Hand (DOH)

A

number of days in period / inventory turnover; activity ratio

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8
Q

Days of Sales Outstanding (DSO)

A

number of days in period / receivables turnover; activity ratio

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9
Q

Receivables turnover

A

revenue / average receivables; activity ratio

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10
Q

Payables Turnover

A

purchases / average trade payables; activity ratio

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11
Q

Number of Days of Payables

A

numbers of days in period / payables turnover; activity ratio

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12
Q

Working Capital Turnover

A

revenue / average working capital; activity ratio

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13
Q

Fixed Asset Turnover

A

revenue / average net fixed assets; activity ratio

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14
Q

Total Asset Turnover

A

revenue / average total assets; activity ratio

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15
Q

Current Ratio

A

current assets / current liabilities; liquidity ratio

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16
Q

Quick Ratio

A

cash + ST marketable investments + receivables/ current liabilities; liquidity ratio

17
Q

Cash Ratio

A

cash + ST marketable investments / current liabilities; liquidity ratio

18
Q

Defensive Interval Ratio

A

cash + ST marketable investments + receivables / daily cash expense; liquidity ratio

19
Q

Cash Conversion Cycles (Net Operating Cycle)

A

DOH + DSO - number of days payable; liquidity ratio

20
Q

Debt-to-Assets Ratio

A

total debt / total assets; solvency ratio

21
Q

Debt-to-Capital Ratio

A

total debt / total debt + total shareholders’ equity; solvency ratio

22
Q

Debt-to-Equity Ratio

A

total debt / total shareholders’ equity; solvency ratio

23
Q

Financial Leverage Ratio

A

average total assets / average total equity; solvency ratio

24
Q

Interest Coverage

A

EBIT / interest payable; solvency ratio

25
Q

Fixed Charge Coverage

A

EBIT / interest payments + lease payments

26
Q

Gross Margin Profit

A

gross profit / revenue; profitability ratio

27
Q

Operating Profit Margin

A

operating income / revenue; profitability ratio

28
Q

Pretax Margin

A

EBT / revenue; profitability ratio

29
Q

Net Profit Margin

A

net income / revenue; profitability ratio

30
Q

Operating ROA

A

operating income / average total assets; profitability ratio

31
Q

ROA

A

net income / average total assets; profitability ratio

32
Q

Return on Total Capital

A

EBIT / ST and LT debt & equity; profitability ratio

33
Q

ROE

A

net income / average total equity; profitability ratio

34
Q

Return on Common Equity

A

net income - preferred dividends / average common equity; profitability ratio

CFA Level I (8 decks)

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