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Financial Management > Ratios > Flashcards

Ratios Flashcards

1
Q

Current ratio

A

Current assets / current liabilities

Liquidity

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2
Q

Quick ratio / acid test

A

Cash + Marketable securities + accounts receivable / current liabilities

Liquidity

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3
Q

Working capital to sales ratio

A

Net annual sales / CA - CL

Liquidity

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4
Q

Accounts receivable to sales ratio

A

Accounts receivable / net revenue (sales) *100%

Liquidity

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5
Q

Average payment method

A

Current liabilities / (( operating expenses - depreciation expense ) / 365)

Liquidity

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6
Q

Days in accounts receivable

A

Accounts receivable / (net revenue / 365)

Liquidity

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7
Q

Operating Margin
Profit Margin
Sales Margin

A

EBIT (operating profit) / net revenue (sales) * 100%

Profitability

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8
Q

Net profit margin

A

Net income (EAT, Profit) / Net revenue (sales) * 100%

Profitability

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9
Q

Gross profit margin

A

Gross profit / revenue * 100%
Revenue - COGS / revenue * 100%

Profitability

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10
Q

Return on total assets
ROTA

A

EBIT (operating profit) / TA * 100%

Profitability

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11
Q

Return on equity
ROE

A

Net income (EAT, Profit) / Total equity year before * 100%

Profitability

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12
Q

Asset turnover ratio

A

Net revenue (net sales) / average TA

Profitability

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13
Q

Debt to equity ratio

A

Debt (non-current and current borrowings) / equity

Solvency

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14
Q

Equity ratio

A

Total equity (Owners funds) / Total assets (Ownersfunds + LTL +CL) * 100%

Solvency

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15
Q

Debt ratio

A

Total debt (CL + LTL) / Total assets * 100%

Solvency

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16
Q

Interest cover ratio

A

EBIT (Operating profit) / Interest (net finance expenses)

Solvency

17
Q

Debt service coverage ratio

A

Net profit + interest + depreciation / interest + redemption (principal payment + repayment financial liabilities)

Solvency

18
Q

Capital employed

A

Total assets - current liabilities

TA - CL

19
Q

Working capital

A

Current assets - current liabilities

CA - CL

20
Q

EBIT

A

Operating profit
Total revenue - operating costs

21
Q

EBITDA

A

EBIT + D + A
Operating profit + D + A

22
Q

EBT

A

EBIT - interest to lenders

23
Q

EAT

A

Net profit, Net income
EBT - tax to government

24
Q

RE (retained earnings)

A

EAT - dividend to shareholders

25
Q

Return on capital employed

A

EBIT / TA - CL

26
Q

EBITDA margin

A

EBITDA/revenue

Financial Management (9 decks)

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