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FINANCIAL STATEMENT > RATIOS > Flashcards

RATIOS Flashcards

1
Q

INVENTORY TURNOVER

A

Inventory turn = COGS
————
Average Inventory

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2
Q

Quick Ratio / Acid Test

A

Cash + Receveibles + Marketable Securities

————————————————-

CURRENT LIABILITIES

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3
Q

Interest Coverage

A

EBIT
———
Interest

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4
Q

Gross Profit Margin

A

Gross profit
——————-
Revenue

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5
Q

Double Declining balance

A

2/ useful life x (COST - ACUM. Depreciation)

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6
Q

UNITIS OF PRODUCTION

A

(Cost - Salvage value) x (output) units
——————————-
Useful life IN UNITS

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7
Q

Tax Expense

A

Tax payable + dif.DTL - dif. DTA

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8
Q

Net profit margin

A

Net Income
—————
Sales

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9
Q

Effective Tax Rate

A

Tax Expense
——————-
EBT

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10
Q

Asset turnover

A

Revenue
—————
Average total assets

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11
Q

Inventory Days on Hand

A

Avarege inventory for the year x 365
—————————————
COGS

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12
Q

NRV

A

Expected Selling Price - Total Selling cost

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13
Q

Three Part DuPont Equation
(NAL)

A

NET PROFIT Margin x
Asset TurnOver x
Leverage Ratio.

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14
Q

How should Permantly Impaired Value be written down?

A

To its recoverable Amount (Fair Value - Selling Costs)

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15
Q

Accounts Receivable Turnover

A

Net credit Sales
————————-
Avg. accounts Receivable

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16
Q

Cash Covertion Cycle

A

Days os sales Outstanding +
Days inventory’s on hand -
Number of days of payables

17
Q

Days of sales outstanding

A

365
———
Receivables Turnover

18
Q

Laverage Ratio

A

Total Assets
——————-
Total Equity

19
Q

Interest Expense

A

Total Debt x Interest rate

20
Q

Cash Ratio

A

Cash + Cash Equivalents
————————————
Current Liabilities

21
Q

Defensive Interval

A

Cash + mrkt. Securities + receveibles
—————————————————-
Daily Cash Expenditures

22
Q

Receivables Turn Over

A

Annual Sales
———————
Avg. Receivables

23
Q

Payables Turnover

A

Purchases
—————————
Avg. trade payables

24
Q

Days of Sales Outstanding

A

365
————————-
Receivables Turnover

25
Q

Number of days of Payable

A

365
——————-
Payables turnover

FINANCIAL STATEMENT (4 decks)

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