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CMA Part2 > Financial Statement Analysis > Flashcards

Financial Statement Analysis Flashcards

0
Q

Current Ratio

A

Current Assets / Current Liabilities

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1
Q

Sustainable Growth Rate

A

(1 − Dividend Payout Ratio) × ROE

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2
Q

Quick (or acid test) ratio

A

(Cash + marketable securities + Accounts Receivables) / current liabilities

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3
Q

ROA

A

Net Income / Average Total Assets

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4
Q

ROE

A

Net Income / Average Equity

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5
Q

Gross Profit Margin Percentage

A

Gross Profit / Sales

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6
Q

Operating Profit Margin Percentage

A

Operating Income / Sales

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7
Q

Net Profit Margin Percentage

A

Net Income / Sales

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8
Q

Debt to Total Assets Ratio

A

Total Debt / Total Assets

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9
Q

Interest Coverage (or Times Interest Earned, TIE)

A

EBIT / Interest Expense

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10
Q

Basic EPS (Earnings per Share)

A

(Net Income − Preferred Stock Dividends) / Weighted Average Common Stock Shares Outstanding

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11
Q

Working Capital

A

Current Assets − Current Liabilities

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12
Q

Cash Ratio

A

Cash + Marketable Securities / Current Liabilities

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13
Q

Cash Flow Ratio

A

Operating Cash Flow / Current Liabilities

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14
Q

Days’ Purchases in Accounts Payable

A

Average Accounts Payable / Credit Purchases

X 365

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15
Q

Financial Leverage Ratio

A

Assets / Equity

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16
Q

Debt to Total Assets Ratio

A

Total Debt / Total Assets

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17
Q

Total Debt to Total Capital Ratio

A

(Current Liabilities + Long-Term Liabilities) /

Total Debt + Total Equity

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18
Q

Debt to Equity Ratio

A

Total Debt / Equity

19
Q

Long-Term Debt to Equity Ratio

A

(Total Debt - Current Liabilities) / Equity

20
Q

Fixed-Charge Coverage Ratio

A

Earnings before Fixed Charges and Taxes /

Fixed Charges

21
Q

Times Interest Earned (Interest Coverage) Ratio

A

EBIT / Interest Expense

22
Q

Cash Flow to Fixed Charges Ratio

A

(Cash from Ops. + Fixed Charges + Tax Payments) / Fixed Charges

23
Q

Operating Cycle

A

Days’ Sales in Account Receivable + Days’ Sales in Inventory

24
Q

Accounts Receivable Turnover Ratio

A

Credit Sales / Avg. Gross Accounts Receivable

25
Q

Days’ sales in receivables

A

365 / Accounts Receivable Turnover

Or

(Average Accounts Receivable / Annual Credit Sales) X 365

26
Q

Inventory Turnover Ratio

A

COGS / Average inventory

27
Q

Days sales in inventory

A

(Average inventory / COGS) X 365

28
Q

Total Asset Turnover Ratio

A

Sales / Average Total Assets

29
Q

Fixed Asset Turnover Ratio

A

Sales / Average Net PP&E

30
Q

Diluted EPS

A

(Net Income - Preferred dividends) /

Diluted weighted average number of common shares outstanding

31
Q

Dividend payout ratio

A

Common dividend / Earnings available to common shareholders

32
Q

Dividend yield

A

Annual dividends per share / Market price per share

33
Q

Sustainable Growth Rate

A

ROE (1 − Dividend Payout Ratio)

34
Q

Gross Profit Margin

A

Sales − Cost of Sales

35
Q

Gross profit margin percentage

A

(Sales - Cost of Sales) / Sales

36
Q

Operating profit margin percentage

A

Operating income / Sales

37
Q

Net profit margin percentage

A

Net Income /Sales

38
Q

Return on investment (ROI)

A

Net profits of business unit / Assets of business unit

39
Q

Return on assets (ROA)

A

Net income / Average total assets

40
Q

DuPont ROA

A

Net Income / Average total assets =

Net Income / Sales) X (Sales / Avg total assets

41
Q

DuPont (ROE)

A

(Net profit / Pretax profit) X (Pretax profit / EBIT) X (EBIT / Sales) X (Sales / Assets) X (Assets / Equity)

42
Q

Financial leverage ratio

A

Assets / Equity

43
Q

Book value per share

A

(Total stockholders equity - Preferred equity) /

Number of common shares outstanding

44
Q

Market to Book Ratio

A

Current Stock Price / Book Value per Share

45
Q

Price Earnings Ration

A

Market Price per Share / Earnings per Share

46
Q

Earnings Yield

A

EPS / Current Market Price per Common Share

CMA Part2 (5 decks)

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