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Financial Accounting > Ratios > Flashcards

Ratios Flashcards

1
Q

Return on Equity

A

Net income
__________________________
Total or Common Equity

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2
Q

Return on Assets (RoA)

A

Net Income or EBIT
_____________________

Total Assets

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3
Q

Asset Turnover

A

Sales
____________

Total Assets

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4
Q

Fixed Asset Turnover

A

Sales
_________________

Fixed Assets (PP&E)

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5
Q

Gross Margin

A

Gross Profit
___________________

Revenues

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6
Q

Operating Margin

A 
Operating profit (Revenue - Operating expenses)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Revenues

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7
Q

Net Margin

A

Net Income
_____________

Revenues

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8
Q

Effective Tax Rate

A

Income Tax Expense
______________________

Pretax income

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9
Q

P/E Ratio

A

Price per share
__________________

Earnings per share

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10
Q

Current Ratio (CR)

A

Current Assets
_________________

Liabilities

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11
Q

Quick Ratio

A

Cash + A/R
_____________

Liabilities

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12
Q

Leverage

A

Total Liabilities
_________________

Total Equity

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13
Q

Return on Assets (ROA)

A

Net Income
_____________

Average total assets

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14
Q

Debt to Earnings

A

Current and L/T debt
______________________

Equity

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15
Q

A/R Turnover

A

Annual Sales
________________

Avg. A/R

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16
Q

Days A/R

A

Avg. A/R
____________

Daily Sales

17
Q

Inventory Turnover

A

Annual COGS
________________

Avg. Inventory

18
Q

How long hold inventory before sale

A

365 x Avg. Inventory
_______________________

Annual Sales

19
Q

Days A/P

A

Annual COGS
____________

Avg A/P

20
Q

Cash to Cash Cycle Length

A

How long from when you pay for inventory do you receive cash for it

21
Q

Estimating Cash Needs

A

365 * Target Inventory
________________________. = what you need it to be

COGS

Financial Accounting (2 decks)

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