FRA Flashcards
Cash Flow Statement Equation
Cash=Liabilities+Stockholders’ Equity+Noncash Assets
CFO
Net Income
(+) D&A
(-) Gain on sale of investing assets
(+) Loss on sale of investing activities
(+) Decreases in operating assets
(+) Increases in operating liabilities
(-) Increases in operating assets
(-) Decreases in operating liabilities
Net Cash Flow from Operating activities
Quality of Income Ratio
CFO/Net Income
Capital Aquisition Ratio
CFO/Cash paid for PPE
Free Cash Flow
Free Cash Flow = CFO -Dividends - CapEx
ROE
Net Income/ Avg Total Stockholders’ Equity
ROA
Net Income/ Avg Total Assets
Gross profit margin
Gross profit/Sales
Net profit margin
Net Income/Sales
EPS
Net Income/WA number of common shares outstanding
Quality of Income
CFO/Net Income
Total Asset turnover
Sales/ Avg Total Assets
Fixed Asset turnover
Sales/Avg Net fixed assets (PPE)
Receivables turnover ratio
Sales (net credit sales)/ Avg net Receivables
Avg days to collect receivables
365/receivables turnover ratio
Inventory turnover ratio
Cost of goods sold/ Avg Inventory
Avg days to sell inventory
365/inventory turnover ratio
Accounts payable turnover ratio
Cost of goods sold (or Purchases) Avg accounts payable
Avg days to pay payables
365/accounts payables turnover ratio
DuPont Model
ROE=Net profit margin x Total asset turnover x Financial Leverage
Net income/Avg Total Stockholders Equity = Net Income/Sales x Sales/Avg Total assets x Avg Total Assets/Avg Total Stockholders Equity
ROA
Net profit margin x Total Asset Turnover
Net income/ Avg total assets = Net income/Sales x Sales/Avg Total Assets
Current ratio
Current assets/ Current liabilities
