Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

EDHEC > FSA Acronyme & fonctionnement > Flashcards

FSA Acronyme & fonctionnement Flashcards

1
Q

Increase in current asset

A

Deducted from net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Increase in current liabilities

A

Added to Net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Two types of constructing statement of Cash Frlows

A

Direct and indirect method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

RNOA

A

Return on net operating assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

NOPAT

A

Net Operating Profit after tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

NOA

A

Average Net Operating Assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

NOPAT = ?

A

EBIT + Tax paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Non operating Return = ?

A

FLEV x SPREAD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

ROE = ?

A

Net Income / Shareholders’s Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Current Ratio = ?

A

Current Assets including cash / Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Quick Ratio / Acid Test =

A

(Cash + Marketable Securities + Trade receivables) / Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Cash Ratio

A

(Cash + Marketable securities ) / Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Intervalle Current Ratio

A

[1,5 ; 2,5]

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Current Ratio [0 ; 1]

A

Wasteful

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

If Current Ratio > 2,5

A

Wastefull accumulation of liquid ressources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Working Capital = ?

A

Long term Capital (Sh & Long term Lia) - Fixed Assets (Non current assets)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Working Capital Need = ?

A

Current Assets except cash - Current liabilities without interest bearing debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Net Cash = ?

A

Working capital - Working capital Need

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Criteria for current asset

A

Benefits within 3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Criteria for non current assets

A

Benefits within more than 3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Besoin en fonds de roulement (BFR)

A

Stock (M1 / March / Prod fini) + Créances d’exploitation - dettes d’exploitations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

RNOA = NOPAT / NOA

A

Desegregation of RONA = (NOPAT / Sales) x (Sales / NOA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Net operating profit margin = ?

A

NOPAT / Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Net operating asset turn-over (NOAT) = ?

A

Sales / NOA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Emission d’actions en anglais

A

Issuance of stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Free cash flow = ?

A

Cash provided by operating activities - Capital expenditures - Cash dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Capital expenditures

A

Investments on PPE’s ad intangibles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is liquidity

A

The ability to pay obligations expected to become due within the next year

29
Q

What does RNOA measures

A

How profitably the company deployed its assets to generate operating profits

30
Q

NOPAT = Operating income x (1 - tax rate)

A

NOPAT = Operating income x (1 - tax rate)

31
Q

ROS = ? Measures what ?

A

Return on sales
Profitability
Net profit / Sales

32
Q

Asset turnover = ? Measures what ?

A

Sales / Assets

Efficiency

33
Q

Financial leverage = ? Measures what ?

A

Assets / Financial leverage

Financial leverage

34
Q

Cash conversion cycle = ?

A

Accounts receivable + Inventories - Accounts payable

35
Q

Working capital T/O

A

Sales / Working capital need

36
Q

a

A

a

37
Q

Financial leverage = ?

A

Debt / Equity

38
Q

What is the condition under which ROE will be increased by adding financial leverage ?

A

ROE is increased by adding financial leverage as long as RNOA is higher than the weighed average cost of capital

39
Q

What is the logic of the Dupont Method (Classical question)

A
  • The DuPont method decomposes the ROE in order to gain insights into the levers that are
    driving the return on the capital invested by shareholders: margins, efficiency of the
    assets and capital structure.
40
Q

What does the ROS measures ? (Official answer)

A

ROS (profit margin):is a profitability indicator. Calculated as net income divided by
revenues. It measures how much out of every euro of sales a company eventually keeps in
earnings  company’s ability to monitor its revenues in terms of pricing and volume, and
to control its costs.

41
Q

What does the asset turnover measures ?

A

(asset turnover): operating efficiency indicator. Calculated as sales divided
by assets. It indicates the amount of sales generated for every euro’s worth of assets 
company’s efficiency in using its assets.

42
Q

What does the leverage ratio measures ?

A

. Calculated as assets divided by shareholders’ equity.
Indicates the degree of indebtedness of a firm (“debt” broadly speaking including loans,
payables, bonds). An equity multiplier of 1 means the company has no debt and as the ratio
increases, the company becomes more indebted. Companies that show a high ROE with
little debt relative to equity are able to grow without large capital expenditures, allowing
the firm to borrow surplus cash and deploy it elsewhere.

43
Q

What are the 3 components of the ROE Dupont analysis :

A

ROS x ROA x leverage ratio or ROS x ROA x Equity multiplier

44
Q

What are the limitations of the traditional Dupont Method ?

A
  • The assets include both operating assets and financial assets such as cash and marketable securities,
  • Net income includes profit from operating activities, as well as interest expense and interest income
    which are consequences of financing decisions.
  • The financial leverage used by DuPont does not recognize the fact that a company’s cash and cash
    equivalent are by nature “negative debt” because they can be used to pay down the debt in the balance
    sheet.
45
Q

Operating ROA = RNOA

A

Operating ROA = RNOA

46
Q

Operating capital need

A

Working Capital Need

47
Q

Equity multiplier = Financial leverage

A

Total Assets / Total Equity

48
Q

Other name for Equity multiplier

A

Total Assets / Total Equity –> Financial leverage

49
Q

How to compute the effective tax rate based on an income statement

A

Tax expense / Profit before tax

50
Q

Net interest expense = ?

A

Interest expense - Interest income (logical)

51
Q

Net interest expense after tax = ?

A

Net interest expense * (1- tax rate)

52
Q

NOPAT = in exercices ?

A

Net Profit + Net interest expense after tax

53
Q

Operating working capital = ?

A

(Current Assets without cash) - (Current liabilities without interest bearing liabilities)

54
Q

Net non current assets = ?

A

(Non current assets) - (non interest bearing liabilities) - (minority interest)

55
Q

NOA = in practice ?

A

Operating WC + net non current assets

56
Q

Net Debt = ?

A

Total debt - cash & cash equivalents (Souvent Cash & marketable securities)

57
Q

Net financial leverage = ?

A

Net debt / shareholder’s equity

58
Q

Effective interest tax rate after tax%

A

Net interest expense after tax / net debt

59
Q

Spread % = ?

A

RNOA - effective interest rate after tax

60
Q

Net financial leverage = ?

A

net debt / shareholder’s equity

61
Q

Ne pas confondre Net interest expense after tax ≠ Effective interest expense after tax

Bien que Effective interest rate after tax se calcule à partir de Net interest expense after tax

A

Ne pas confondre Net interest expense after tax ≠ Net interest rate after tax

Bien que Net interest rate after tax se calcule à partir de Net interest expense after tax

62
Q

Question Statement of cash flows : Purchase of equipment quel type activité

A

Operating activities

63
Q

Increase in-other non-current liabilities ?

A

Operating activities !

64
Q

Decrease in deferred incomes taxes

A

Operating activities !

65
Q

Increase in prepaid expenses ? Question Statement of cash flows :

A

Operating activities !

66
Q

Question Statement of cash flows : Which base ?

A

Net income

67
Q

Question Statement of cash flows : Which goal ?

A

Difference with cash

68
Q

A deferred income tax is a liability recorded on a balance sheet resulting from a difference in income recognition between tax laws and the company’s accounting methods. For this reason, the company’s payable income tax may not equate to the total tax expense reported.

A

A deferred income tax is a liability recorded on a balance sheet resulting from a difference in income recognition between tax laws and the company’s accounting methods. For this reason, the company’s payable income tax may not equate to the total tax expense reported.

69
Q

Short term debt = ?

A

Bank overdraft used for Net CASH

EDHEC (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions