Ratios Flashcards
Liquidity Ratios (5)
Current Ratio Quick Ratio Average Collection Period AR Turnover Inventory Turnover
Current Ratio
Current assets/ Current Liabilities
Quick Ratio
(Current Assets - inventory)/Current Liabilities
Average Collection Period
AR/Daily Credit Sales
AR Turnover
Credit Sales / AR
Inventory Turnover
Cogs/Inventory
Efficiency Ratios (3)
Total Asset turnover
Fixed Asset Turnover
OIROI
Total Asset Turnover
sales/total assets
Fixed Asset Turnover
Sales/Fixed Assets
Operating income Return on Investment
Operating Income/Total Assets
Financing ratios (2)
Debt Ratios
Times Interest earned
Debt Ratio
Total Debt / Total Assets
Times interest Earned
EBIT / Interest Expense
Profitability Ratios (5)
Return on Assets Return on Equity Gross Margin Operating Margin Net Margin
Return on assets
NI/Total Assets
Return on equity
NI/Total Equity
Gross Margin
Gross profit / Sales
Operating Margin
EBIT/Sales
Net Margin
NI / Sales
Dupont Decomposition
ROE = Net profit Margin x Asset Turnover x Leverage Multiplier
Return on Invested Capital (ROIC)
NOPAT / Costly Capital
Net Operating Profit After Taxes (NOPAT)
EBIT(1-t)
Costly Capital
All Interest Bearing Debt + Total Equity
Free Cash Flows to the Firm (FCFF)
EBIT - Cash Tax Payments + Deprectiation - Capex - Increases in NWC
Cash Tax Payments
Total Tax Payments
Depreciation
Depreciation from the income statement
CAPEX (capital Expenditure)
Gross property plant and equipment changes from the balance sheet
NWC (Net Working Capital)
Net Working Captal (current Assets - Current Liabilites) Changes from the two balance sheets
Free Cash Flow to Equity Holders
net Income + Depreciation - CAPEX - Increase in NWC + Increase in Net Long Term Debt
Economic Value Added (EVA)
NOPAT - [WACC x (Costly Capital)]
WACC
Weighted average cost of capital
