Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Finance Ratios > Ratios > Flashcards

Ratios Flashcards

1
Q

Net working capital

A

Current assets-current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Average daily cost of sales

A

(Total sales-gross profit)/365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Average daily sales

A

Total sales/365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Accounts receivable days

A

AR/(sales/365)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Accounts Payable Days

A

AP/((sales-gross profit)/365)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Inventory Days

A

Inventory/((sales-gross profit)/365)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Accounts Receivable Turnover

A

Sales/AR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Accounts Payable Turnover

A

Annual COGS/AP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inventory Turnover

A

Annual COGS/Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Debt/Equity Ratio

A

Total Debt/Total Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Debt/Capital Ratio

A

Total Debt/(Total equity+Total Debt)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

P/E Ratio

A

Market Capitalization/Net Income
OR
Share Price/Earnings per Share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Gross Profit

A

Sales/COGS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

ROE

A

Net Income/Book Value of Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Operating Margin

A

EBIT/Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Net Profit Margin

A

Net Income/Sales

17
Q

Enterprise Value

A

Mkt Value of Equity+Debt-Cash

18
Q

Interest Coverage Ratio using EBIT

A

EBIT/Interest Expense

19
Q

ROA

A

(Net Income+Interest Expense)/Book Value of Assets

20
Q

Return on Invested Capital

A

(EBIT(1-tax rate))/(Book Value of Equity+Net Debt)

21
Q

Dupont Identity

A

ROE=Net Profit Margin x Asset Turnover x Equity Multiplier

22
Q

Calculating Operating Cash Flow

A
  1. Start with Net Income
  2. ADD cash amount for an INCREASE in depreciation
  3. ADD cash amount for INCREASE in AP
  4. SUBTRACT cash amount for INCREASE in AR
  5. SUBTRACT cash amount for INCREASE in INV
23
Q

Calculating Investing Cash Flow

A
  1. ADD cash amount for INCREASE in Land,Building, and Equip (LT Assets)
  2. ADD cash amount for INCREASE in Goodwill
  3. ADD cash amount for increase in LT ASSETS
24
Q

Calculating Financing Cash Flow

A
  1. SUBTRACT cash amount Dividends paid
  2. ADD cash amount for Stocks Sold (Current Equity-NI-Div Paid-Prev. Year Equity)
  3. ADD cash amount for INCREASE in Notes Payable
  4. ADD cash amount for INCREASE in Maturity of LT Debt
  5. ADD cash amount for INCREASE in LT Debt
25
Q

Current Ratio

A

Current Assets/Current Liabilities

26
Q

Cash Ratio

A

Cash/Current Liabilities

27
Q

Gross Margin

A

Gross Profit/Sales

28
Q

EBIT Margin

A

EBIT/Sales

29
Q

Book Value of Equity

A

Total Assets-Total Liabilities

30
Q

Market Value of Equity

A

Shares outstanding x Current Market Price

31
Q

Enterprise Value ****

A

Market Value of Equity+Debt-Cash

32
Q

Market Capitalization

A

Shares outstanding X Current Market Price

Finance Ratios (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions