Ratios

Question 1

Gross Margin

Answer 1

Gross Profit / Sales

Ability to translate sales into profits

Question 2

EBITDA Margin

Answer 2

EBITDA / Sales

Need industry ratio

Question 3

Operational Margin

Answer 3

EBIT / Sales

see the management of operating costs

Question 4

Net Profit Margin

Answer 4

Income / Sales

Question 5

COGS

Answer 5

COGM + Opening inventories - Closing inventories

Question 6

Asset Turnover

Answer 6

Sales / Assets

the higher the ratio is, the smaller the investment required

Question 7

Inventory Turnover

Answer 7

COGS / Inventory

high= good

Question 8

Days inventory held

Answer 8

(Inventory / COGS) * 365

Question 9

Collection Period (Receivables)

Answer 9

(AR / COGS) * 365

Question 10

Payable Period

Answer 10

(AP / COGS) * 365

Question 11

Cash conversion cycle

Answer 11

Inventory in day + Receivables in day - Payables in day

Question 12

Days sales in cash

Answer 12

(Cash&marketable securities / Sales) * 365

high=high need in cash

Question 13

Fixed Asset Turnover

Answer 13

Sales / FA

if low: capital intensive (high investment required) = high operating leverage but high prod volume required to ROI

Question 14

Capital Employed

Answer 14

NCA + WC + cash

A - Op Liabilities (AP)

Question 15

Working Capital

Answer 15

Inventory + AR - AP (+ Cash if for IC)

Question 16

Break Even Point

Answer 16

Fixed Cost / Contribution Margin per capita

Question 17

Contribution Margin

Answer 17

Revenue - VC

Question 18

Operating Income

Answer 18

Gross Profit - Operating expenses

Question 19

Amount before tax

Answer 19

Amount / (1- t)

Question 20

Solvency

Answer 20

E / A

Question 21

Retained Earning Y1

Answer 21

Retained Earning Y0 + Net income - dividend paid

Question 22

Common Stock

Answer 22

Value of Sh * nb of shares

Question 23

Market capitalization

Answer 23

nb of sh * Market price

Question 24

Current Liabilities

Answer 24

Short term debt + Current portion of LTD

Question 25

Net Cash

Answer 25

Net LTD - WC

Question 26

Full consolidation

Equity
Group Share

Answer 26

Equity parent - Investissement Parent + Equity subsi

Net income parent - Minority share

Question 27

Debt to Equity

Answer 27

Financial Debt / Equity

Question 28

Debt to Asset

Answer 28

Total Liab / Total Assets

Question 29

Assets to Equity

Answer 29

Tot Assets / Equity

Question 30

LT debt to capitalization

Answer 30

LTD / LTD + E

Question 31

Times Interests Earned

Answer 31

EBIT / interest expenses

Question 32

EBITDA coverage

Answer 32

EBITDA / interest expenses

Question 33

CF coverage

Answer 33

Operating CF / interest bearing debt

Question 34

Earnings per Share

Answer 34

Net income / nb of shares

Question 35

P/E ratio

Answer 35

Market Price / EPS

Question 36

Dividend payout ratio

Answer 36

Dividend per share / EPS

to what extend does it retains its earnings

Question 37

Dividen yield

Answer 37

Dividend per share / Market Price

Question 38

Total return

Answer 38

dividen yield + capital appreciation

Question 39

ROE (avec ROIC)

Answer 39

ROIC + (ROIC - After tax cost of debt) * D/E

Question 40

The Du Pont system

Answer 40

ROE= (Net profit/Net sales) * (Net sales/Tot A) * (Tot A/E)

Question 41

Current ratio

Answer 41

Current Assets / Current Liabilities

Question 42

Quick Ratio

Answer 42

(Current Assets - Inventories) / Current Liabilities

Question 43

ROCE

Answer 43

EBIT / CE

Question 44

Capital Employed

Answer 44

Total A - Current Liabilities

Question 45

ROA

Answer 45

Profit / A

Net profit margin * Asset turnover

Question 46

ROE

Answer 46

Profit / E

Question 47

ROIC

Answer 47

(EBIT (1-t)) /IC

Question 48

Invested Capital

Answer 48

total debt + E - non operating cash & investment

= CE