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Financial Statement Analysis And Evaluation > Ratios > Flashcards

Ratios Flashcards

1
Q

NET PROFIT MARGIN

A

(Net income/Sales)*100

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2
Q

TOTAL ASSET TURNOVER

A

Sales/Tot. Assets

Sales / Avg total assets -> (variation y1+y2)/2

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3
Q

RETURN ON TOTAL ASSETS

A

(Net income / Avg Tot. Assets )*100

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4
Q

CURRENT RATIO

A

Current Assets / Current Liabilities

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5
Q

ACID-TEST RATIO

A

(Cash+Cash equivalents+ACC. Receivables)/ Current liabilities

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6
Q

DAYS TO SELL INVENTORY

A

(Average Inventory / Cost of goods)*360

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7
Q

COLLECTION PERIOD

A

(Average Acc Receivables / sales )*360

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8
Q

TOTAL DEBT TO TOTAL EQUITY

A

(Total current liabilities + long term debt+ other liabilities) / stockholders’ equity

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9
Q

TOTAL DEBT TO TOTAL ASSETS

A

(Liabilities / Assets)* 100

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10
Q

LONG TERM DEBT TO EQUITY

A

Long term debt / total equity

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11
Q

TIMES INTEREST EARNED

A

Income from operation / interest expenses

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12
Q

RETURN ON TOTAL ASSETS

A

(Net income+interest expenses (1-tax rate)/average assets )*100

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13
Q

RETURN ON COMMON EQUITY

A

[Net income - preferred dividends (to the preferred shareholders)/ average common equity]*100

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14
Q

GROSS PROFIT MARGIN RATIO

A

(Gross profit / sales )*100

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15
Q

OPERATING PROFIT MARGIN RATIO

A

(Income before interest and taxes (gross profit) / sales )*100

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16
Q

GROSS PROFIT

A

Sales - Cost of goods sold

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17
Q

OPERATING PROFIT MARGIN RATIO

A

()Operating) gross profit/sales )*100

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18
Q

OPERATING PROFIT

A

Net sales-expenses of the IS (not including interest income, interest expenses and tax on earnings)

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19
Q

PRETAX PROFIT MARGIN RATIO

A

(Earnings before tax (pretax income) / sales )*100

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20
Q

NET PROFIT MARGIN RATIO

A

(Net income / sales) *100

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21
Q

CASH TURNOVER

A

Sales / cash and other types of cash

Avg -> sales / [(cash y1+cash y2)/2]

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22
Q

ACCOUNTS RECEIVABLE TURNOVER

A

Sales/ Average acc receivables [(y1+y2)/2]

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23
Q

INVENTORY TURNOVER

A

Cost of goods sold / average inventory [(variation (y1+y2)/2]

24
Q

WORKING CAPITAL TURNOVER

A

Sales/ average working capital

25
Q

WORKING CAPITAL

A

Current assets- current liabilities

26
Q

PPE / FIXED ASSETS TURNOVER

A

Sales / average total assets

27
Q

TOTAL ASSETS TURNOVER

A

Sales / average total assets

28
Q

PRICE TO EARNINGS RATIO

A

Market net price / earnings per share

29
Q

EARNINGS PER SHARE

A

Net income / n of shares in the market

30
Q

EARNINGS PER SHARE

A

Net income /(equity / value per share)

31
Q

EARNINGS YIELD

A

(Earnings per share / market net price per share)*100

32
Q

DIVIDEND YIELD

A

(Dividend / market net price per share)*100

33
Q

DIVIDEND PAYOUT RATE

A

(Dividend per share / earnings per share)*100

34
Q

PRICE TO BOOK RATIO

A

Market price per share (value)/book value per share

35
Q

RETURN ON INVESTED CAPITAL (ROI)

A

Income/ invested capital

36
Q

RETURN ON EQUITY (ROE)

A

[Net income /(equity+retained earnings)]*100

37
Q

RETURN ON NET OPERATING ASSETS

A

NOPAT / [(beginning NOA+ending NOA)/2]

38
Q

NOPAT

A

Operating income * (1-tax rate)

Net profit + net interest)*(1-tax rate

39
Q

NOA

A

Net operating assets

Operating assets - current liabilities

40
Q

RETURN ON COMMON EQUITY (ROCE)

A

Net income- preferred dividends
[(Beginning equity +ending equity)/2]

Equity =stockholders’ equity - preferred stocks

41
Q

ROCE 2

A

RNOA + (LEV *spread)

Adjusted profit margin* assets turnover * leverage

42
Q

ROCE 3

A

(Net income - preferred dividends )/ average common equity

43
Q

ADJUSTED PROFIT MARGIN

A

(Net income - preferred dividends)/sales

44
Q

ASSET TURNOVER

A

Sales / average assets

45
Q

LEVERAGE

A

Average assets / average common equity

46
Q

RETURN ON OPERATING ASSETS (ROA)

A

(Net income /total assets )*100

47
Q

RETURN ON OPERATING ASSETS 2

A

Operating profit margin * operating assets turnover

NOPAT / avg NOA)= (NOPAT/sales)* (Sales/ avg NOA

48
Q

RNOA

A

(NOPAT / sales )sales / average OA(1+OLLEV)

OA = operating assets 
OLLEV = operating liabilities leverage ratio (operating liabilities/ NOA)
49
Q

OPERATING PROFIT MARGIN (OPM)

A

NOPAT/sales

50
Q

PRETAX PM

A

Pretaxes sales PM+pretax other PM

51
Q

PRETAXES SALES PM

A

(Gross margin / sales)-(selling expenses/ sales)-(administrative expenses/sales)-(R&D/sales)

52
Q

PRETAX OTHER PM

A

(Equity income / sales)+-(special items / sales)

53
Q

EQUITY GROWTH RATE

A

(Net income - preferred dividends - dividends payout)/average common stockholders’ equity

54
Q

SUSTAINABLE EQUITY GROWTH RATE

A

ROCE (1-Payout rate)

55
Q

LEVERAGE 2

A

NFO/Equity

Financial Statement Analysis And Evaluation (1 decks)

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