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finance 3400 > Ratios > Flashcards

Ratios Flashcards

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1
Q

Liquidity Ratios (5)

A 
Current Ratio
Quick Ratio
Average Collection Period
AR Turnover
Inventory Turnover
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2
Q

Current Ratio

A

Current assets/ Current Liabilities

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3
Q

Quick Ratio

A

(Current Assets - inventory)/Current Liabilities

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4
Q

Average Collection Period

A

AR/Daily Credit Sales

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5
Q

AR Turnover

A

Credit Sales / AR

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6
Q

Inventory Turnover

A

Cogs/Inventory

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7
Q

Efficiency Ratios (3)

A

Total Asset turnover
Fixed Asset Turnover
OIROI

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8
Q

Total Asset Turnover

A

sales/total assets

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9
Q

Fixed Asset Turnover

A

Sales/Fixed Assets

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10
Q

Operating income Return on Investment

A

Operating Income/Total Assets

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11
Q

Financing ratios (2)

A

Debt Ratios

Times Interest earned

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12
Q

Debt Ratio

A

Total Debt / Total Assets

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13
Q

Times interest Earned

A

EBIT / Interest Expense

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14
Q

Profitability Ratios (5)

A 
Return on Assets
Return on Equity
Gross Margin
Operating Margin
Net Margin
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15
Q

Return on assets

A

NI/Total Assets

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16
Q

Return on equity

A

NI/Total Equity

17
Q

Gross Margin

A

Gross profit / Sales

18
Q

Operating Margin

A

EBIT/Sales

19
Q

Net Margin

A

NI / Sales

20
Q

Dupont Decomposition

A

ROE = Net profit Margin x Asset Turnover x Leverage Multiplier

21
Q

Return on Invested Capital (ROIC)

A

NOPAT / Costly Capital

22
Q

Net Operating Profit After Taxes (NOPAT)

A

EBIT(1-t)

23
Q

Costly Capital

A

All Interest Bearing Debt + Total Equity

24
Q

Free Cash Flows to the Firm (FCFF)

A

EBIT - Cash Tax Payments + Deprectiation - Capex - Increases in NWC

25
Q

Cash Tax Payments

A

Total Tax Payments

26
Q

Depreciation

A

Depreciation from the income statement

27
Q

CAPEX (capital Expenditure)

A

Gross property plant and equipment changes from the balance sheet

28
Q

NWC (Net Working Capital)

A

Net Working Captal (current Assets - Current Liabilites) Changes from the two balance sheets

29
Q

Free Cash Flow to Equity Holders

A

net Income + Depreciation - CAPEX - Increase in NWC + Increase in Net Long Term Debt

30
Q

Economic Value Added (EVA)

A

NOPAT - [WACC x (Costly Capital)]

31
Q

WACC

A

Weighted average cost of capital

finance 3400 (3 decks)

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