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CFA Level I > Financial Ratios > Flashcards

Financial Ratios Flashcards

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CFA flashcards
1
Q

Net Profit Margin

A

Net Income / Revenue

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2
Q

Return on Assets (ROA)

A

Operating Income / Avg. Total Assets

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3
Q

ROE

A

Net Income / Avg. Shareholders Equity

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4
Q

Common Size for Balance Sheet

A

Total Assets

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5
Q

Common Size for Income Statement

A

Revenue

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6
Q

Common Size for Cash Flow Statement

A

Revenue, or Total Inflows and Total Outflows

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7
Q

Net Working Capital

A

Current assets - current liabilities

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8
Q

Describe Activity Ratios

A

How the company performs day-to-day taks (collection of receivables, management of inventory, etc.)

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9
Q

Describe Liquidity Ratios

A

Ability to meet short term oblications

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10
Q

Describe Solvency Ratios

A

Ability to meet long-term obligations

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11
Q

Describe Profitability Ratios

A

ability to generate profit from resources

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12
Q

Describe Valuation Ratios

A

the quantity of an asset or flow associate with ownership of a specific claim

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13
Q

Inventory Turnover Ratio

A

COGS / Avg. Inventory

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14
Q

Days of Inventory (DOH)

A

365 / Inventory Turnover Ratio

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15
Q

Receivables Turnover Ratio

A

Sales / Average Receivables

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16
Q

Days of Sales (DOS)

A

365 / Receivables Turnover Ratio

17
Q

Payables Turnover Ratio

A

Purchase / Avg. Accounts Payable

18
Q

Days of Payables

A

365 / Payables Turnover Ratio

19
Q

Working Capital Turnover

A

Revenue / Avg. Working Capital

20
Q

Fixed Asset Turnover

A

Revenue / Avg. net fixed assets

21
Q

Total Asset Turnover

A

Revenue / Avg total assets

22
Q

Current Ratio

A

Current Assets / Current Liabilities

23
Q

Quick Ratio

A

(Cash + Marketable Securities + A/R) / Current Liabilities

24
Q

Cash Ratio

A

(Cash + Marketable Securities) / Current Liabilities

25
Q

Defensive Interval Ratio

A

(Cash + marketable Securities + A/R) / Daily Expenditures

26
Q

Cash Conversion Cycle

A

DOH + DSO - DOP

27
Q

Debt to Assets

A

Total Debt / Total Assets

28
Q

Debt to Capital

A

Total Debt / Total Debt + Total SE

29
Q

Debt to Equity

A

Total Debt / Total SE

30
Q

Financial Leverage

A

Average Total Assets / Average Total Equity

31
Q

Interest Coverage Ratio

A

EBIT / Interest Payments

32
Q

Fixed Charge Coverage Ratio

A

EBIT + Lease payments / Interest Payments + Lease Payments

33
Q

Gross Profit Margin

A

Gross Profit / Revenue

34
Q

Operating Profit Margin

A

Operating Profit / Revenue

35
Q

PreTax Margin

A

EBT / Revenue

36
Q

Return on Total Capital

A

EBIT / (Total Debt + Total Equity)

37
Q

Return on Common Equity

A

(net income - preferred dividends) / Avg Common Equity

38
Q

Decompose ROE

A

(NI/EBT)(EBT/EBIT)(EBIT/Revenue)(Revenue/Average Total Assets)(Avg Total Assets/ Avg SE)

tax burden * interest burden * EBIT Margin * Total Asset Turnover * Financial Leverage

CFA Level I (5 decks)

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