P&L Flashcards
Is a financial statement that reports a company’s financial performance over a specific accounting period
Income Statement
the amount for which something can be sold on a given market.
Market Value
Assumed, forecasted, or informal information presented in advance of the actual or formal information
Pro Forma
The portion of a company’s profit allocated to each outstanding share of common stock
Earnings Per Share
Why ratios are essential ?
- Quick shortcut to understanding
- Comparison to other companies
- Compare performance over time, monthly, quarterly, yearly
- Measure to see if your projection or estimate was on target
What ratio - the ability to generate profits, use of assets?
Profitability Ratio
What ratio - ability to repay Loans and your Debt?
Leverage Ratio
What ratio - available cash to Debt, can you pay your bills?
Liquidity Ratio
What ratio - Manage the balance sheet, How quickly you turn non cash to cash
Efficiency Ratio
Profitability measures the ability of a company to manage what 2 things ?
Generate Sales and Control Expenses
How much Debt (Loans, etc) the company has for every Dollar of investors money (SE) is known as ?
Financial Leverage Ratios
Help you evaluate key Assets and Liabilities on the Balance Sheet – 6 of them
Efficiency Ratios
What is a measure of a company’s operating performance.
(EBITDA)Earnings before interest, tax, depreciation and amortization
Essentially, it’s a way to evaluate a company’s performance without having to factor in financing decisions, accounting decisions or tax environments.
EBITDA
