Ratios Flashcards
Gross Margin
Gross Profit / Sales
Ability to translate sales into profits
EBITDA Margin
EBITDA / Sales
Need industry ratio
Operational Margin
EBIT / Sales
see the management of operating costs
Net Profit Margin
Income / Sales
COGS
COGM + Opening inventories - Closing inventories
Asset Turnover
Sales / Assets
the higher the ratio is, the smaller the investment required
Inventory Turnover
COGS / Inventory
high= good
Days inventory held
(Inventory / COGS) * 365
Collection Period (Receivables)
(AR / COGS) * 365
Payable Period
(AP / COGS) * 365
Cash conversion cycle
Inventory in day + Receivables in day - Payables in day
Days sales in cash
(Cash&marketable securities / Sales) * 365
high=high need in cash
Fixed Asset Turnover
Sales / FA
if low: capital intensive (high investment required) = high operating leverage but high prod volume required to ROI
Capital Employed
NCA + WC + cash
A - Op Liabilities (AP)
Working Capital
Inventory + AR - AP (+ Cash if for IC)
Break Even Point
Fixed Cost / Contribution Margin per capita
Contribution Margin
Revenue - VC
Operating Income
Gross Profit - Operating expenses
Amount before tax
Amount / (1- t)
Solvency
E / A
Retained Earning Y1
Retained Earning Y0 + Net income - dividend paid
Common Stock
Value of Sh * nb of shares
Market capitalization
nb of sh * Market price
Current Liabilities
Short term debt + Current portion of LTD
Net Cash
Net LTD - WC
Full consolidation
Equity
Group Share
Equity parent - Investissement Parent + Equity subsi
Net income parent - Minority share
Debt to Equity
Financial Debt / Equity
Debt to Asset
Total Liab / Total Assets
Assets to Equity
Tot Assets / Equity
LT debt to capitalization
LTD / LTD + E
Times Interests Earned
EBIT / interest expenses
EBITDA coverage
EBITDA / interest expenses
CF coverage
Operating CF / interest bearing debt
Earnings per Share
Net income / nb of shares
P/E ratio
Market Price / EPS
Dividend payout ratio
Dividend per share / EPS
to what extend does it retains its earnings
Dividen yield
Dividend per share / Market Price
Total return
dividen yield + capital appreciation
ROE (avec ROIC)
ROIC + (ROIC - After tax cost of debt) * D/E
The Du Pont system
ROE= (Net profit/Net sales) * (Net sales/Tot A) * (Tot A/E)
Current ratio
Current Assets / Current Liabilities
Quick Ratio
(Current Assets - Inventories) / Current Liabilities
ROCE
EBIT / CE
Capital Employed
Total A - Current Liabilities
ROA
Profit / A
Net profit margin * Asset turnover
ROE
Profit / E
ROIC
(EBIT (1-t)) /IC
Invested Capital
total debt + E - non operating cash & investment
= CE
