Brainscape's Knowledge GenomeTM

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


See full index

FAR F2 > M8 - Ratio & Variance Analysis > Flashcards

M8 - Ratio & Variance Analysis Flashcards

Ratio & Variance Analysis

1
Q

Gross (Profit) Margin Formula

A

(Sales (net) - COGS) / Sales (net)

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

Profit Margin Formula

A

Net income / sales (net)

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

Return on Sales Formula

A

Income before interest income, interest expense, and taxes / sales (net)

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

Return on Assets (ROA)

A

Net income / average total assets

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

DuPont Return on Assets

A

Profit margin x asset turnover

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

Return on Equity

A

Net income / average total equity

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

Operating Cash Flow Ratio

A

Cash flow from operations / current liabilities

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

Current ratio

A

current assets / current liabilities

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

Quick ratio

A

(cash and cash equivalents + short-term marketable securities + receivable (net)) / current liabilities

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

AR turnover

A

sales (net) / average accounts receivable (net)

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

Days Sales in AR

A

Ending AR (net) / ( sales (net) / 365 )

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

Inventory Turnover

A

COGS / Average inventory

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

Days in inventory

A

Ending inventory / ( COGS / 365 )

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

AP Turnover

A

COGS / Average accounts payable

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

Days payables OS

A

Ending AP / ( COGS / 365 )

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

Cash conversion cycle

A

Days sales in AR + Days in inventory - Days of payables OS

17
Q

Debt-to-equity

A

Total liabilities / total equity

18
Q

Total debt ratio

A

Total liabilities / total assets

19
Q

Equity multiplier

A

Total assets / total equity

20
Q

Times interest earned

A

Income before interest expense and taxes / interest expense

21
Q

EPS

A

Income available to common shareholders / weighted average common shares OS

22
Q

Price-to-earnings ratio

A

Price per share / basic EPS

23
Q

Dividend payout

A

cash dividends / net income

24
Q

Asset turnover

A

Sales (net) / average total assets

FAR F2 (4 decks)

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