Lecture 4 and 5 Financial Analysis Flashcards
1
Q
How can Ratios be interpreted?
A
- Trend over time
- Benchmarking to industry, competitors etc.
- Comparison to target or expectation
2
Q
How do you Calculate ROI?
A
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3
Q
How to calculate Operating Margin?
A
Operating Margin =
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4
Q
How to calculate Return on Capital Employed?
A
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5
Q
How do you calucalte Gross Profit Margin?
A
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6
Q
How do you calcualte OH/Sales Ratio? …. Guess :)
A
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7
Q
How do you calcuate Sales Growth Ratio?
A
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8
Q
How do you calculate Working Capital Ratio?
A
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9
Q
How do you Calcualte the Acit Test Ratio?
A
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10
Q
How do you calculate Gearing Ratio?
A
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11
Q
How do you calculate Interest Cover Ratio?
A
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12
Q
How do you Calcualte Asset Turnover?
A
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13
Q
What are the two key areas of any analysis? and why?
A
- Gearing
- Working Capital
Why?
- Risk
- Return • Cash
14
Q
Explain the effect of different debt/equity compositions on Risk and Return:
A
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15
Q
Explain the Working Capital Cycle:
A
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