Financial Statements 2 Flashcards
Gross Profit =
Revenue - Costs
Operating Profit =
Gross Profit - Expenses
Earnings Before Tax =
Operating Profit - Interest
Net Income =
Earnings before tax - Tax
Gross Profit Margin =
Gross Profit / Sales
Operating Profit Margin or EBIT margin =
Operating Profit / Sales
Interest Cover Ratio =
EBIT / interest
Effective tax ratio =
Tax cost / EBIT
Cash flow to the firm =
CFO + (Interest expense x (1 – Tax rate)) – CAPEX
CFO = Cash Flow from Operation
Cash Flow to Equity =
CFO – CAPEX +/– Net debt issued
Change in cash position
CFO + CFI + CFF
cash flow from operations (CFO)
cash flow from investment (CFI)
cash flow from financing (CFF).
Working Capital =
Receivables + Inventory − Payables
Receivable Days =
(Receivables / Revenue) x 365
Inventory Days =
(Inventory / COGS) x 365
Payable Days =
(Payables / COGS) x 365
Total asset turnover =
Revenue / Average of total assets
Current ratio =
Current assets / Current liabilities
Quick Ratio =
(Cash + Marketable Securities + Receivables) / Current Liabilitiea
Leverage =
Assets / Equity
Leverage =
Assets / Equity
Net debt to Equity ratio =
Net Debt / Total Equity
Interest Coverage Ratio =
EBIT / Interest
Return on Equity =
Net Income / Average Equity
Return On Equity =
Net Profit Margin x Asset Turnover x Leverage Ratio