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MAF > Ratios > Flashcards

Ratios Flashcards

1
Q

What is the formula for

Gross margin

A

Gross Profit1/Sales1

how much profit a company makes as a

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2
Q

Net margin

A

Net income1/Sales1

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3
Q

Operating Margin

A

Operating profit1/Sales1

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4
Q

Profit (EBIT) Margin

A

EBIT1/Sales1

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5
Q

ROE

A

Net Income1/Total Equity0

how much profit each dollar of common
stockholders’ equity generates benchmark: industry-specific

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6
Q

Return on assets (ROA)

A

EBIT1/Total Assets0

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7
Q

Return on capital employed (ROCE)

A

EBIT1/Capital Employed0

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8
Q

Capital Employed

A

Equity + Dib

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9
Q

Return on operating net assets (RONA)

A

Operating Profit1/Operating Net Assets0

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10
Q

Operating Net Assets

A

Capital Employed - Financial Assets

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11
Q

Financial Assets

A

Cash and cash equivalents + Marketable securities

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12
Q

Receivables turnover

A

Sales1/Average Receivables

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13
Q

Inventory Turnover

A

COGS1/Average Inventory

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14
Q

Payables turnover

A

Pruchases1/Average Trade Payables

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15
Q

Purchases

A

Closing Inventory - Opening Inventory +COGS

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16
Q

Asset Turnover (TOA)

A

Sales1/Average Total Assets

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17
Q

Working Capital turnover

A

Sales1/Avergae Working Capital

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18
Q

Working Capital

A

Current Assets - Current Liabilities

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19
Q

Equity Ratio (Financial Leverage)

A

Total Equity1/ Total Assets1

how much of the total company assets
are financed by owners’ investments benchmark: > 20%

20
Q

Debt ratio (Financial Leverage)

A

Total Liabilties1/Total Assets1

how many assets the company must sell in order to pay off all of its liabilities benchmark: <80%

21
Q

Debt-to-equity ratio (financial Leverage)

A

Total Liabilites1 / Total Equity1

22
Q

Equity Multiplier (Financial Leverage)

A

Total Assets1 / Total Equity1

how many times assets are higher than stockholders’ equity benchmark: <5

23
Q

Interest Coverage

A

EBIT1 / Interest Expense1

how many times a company can pay its
interest expenses using EBIT
benchmark:> 5, while ab < 5 cdefg

24
Q

Current Ratio

A

Current Assets1 / Current Liabilities1

how many times/whether a firm is able to pay off its short-term liabilities with its current assets
benchmark:> 2

25
Q

Quick Ratio (Acid test)

A

(Current Assets1-Inventory1) / Current Liabilities1

how well a company can quickly convert its assets into cash in order to pay off its current liabilities benchmark:> 1

26
Q

Cash availability

A

Cash and cash equivalents1+Marketable Securities1/Current Liabilities1

27
Q

Cash conversion cycle (CCC)

A

Inventory days + Debtor Days - Creditor Days

28
Q

Inventory Days

A

Average inventory/COGS*365

29
Q

Debtor Days

A

Average Receivables/Sales*365

30
Q

Creditor Days

A

Average Payables/Purchases * 365

31
Q

Purchases

A

Closing Inventory - Opening Inventory + COGS

32
Q

Payout Ratio

A

Dividends/Net Income or Dividend per share/earnings per share

33
Q

Dividend yield

A

Dividend per share/market price of a share

34
Q

Price Earnings ratio

A

Market Capitalization/Net income or market price of a share/earnings per share

35
Q

ROE

A

Net Income1/Total Equity0
or
Net Income1/Pretax Profit1 * Pretax Profit1 / EBIT1 * EBIT1/Sales1 * Sales1/Total Assets0 * Total Assets0/Total Equity0

36
Q

ROA

A

EBIT1/Total Assets0

37
Q

ROCE

A

EBIT1/Capital Employed0

38
Q

ROE with ROA instrument

A

(1-t)[ROA+(ROA-COD)*D0/E0]

39
Q

ROE with instrument ROCE

A

(1-t) [ ROCE + (ROCE - Rd)*Dib0/E0]

40
Q

Rd

A

Interest Expense1/Dib0

41
Q

ROE with instrument RONA

A

(1-t) [RONA + (RONA - Rnd) * ND0/E0)

42
Q

Rnd

A

(Interest Expense1 - Financial Income1)/
Net debt0

43
Q

Net debt

A

Dib - Financial Assets

44
Q

COD

A

Interest Expense1/Total Liabilities

45
Q

Sustainable Growth Rate

A

ROE(1-p)

46
Q

Internal Growth Rate

A

ROA(1-p)

MAF (1 decks)

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