YFA Flashcards
ESTUDIAR
Trend analysis
Method of financial analysis used for identifying and evaluating patterns in data over time. Allows companies to assess specific variables from balance sheets or profit/loss statements, observe changes in time normally in 3 to 10 years.
Common-size/structural/vertical analysis
Financial analysis method for evaluating and comparasion of individual components within financial statements by expressing each item as a percentage of the total
Financial ratio analysis
Use of relationships among financial statements accounts for measuring financial conditions and performance of a company.
Turnover ratios
Measure the amount of times an assets flows in and out of a company during a time period. Indicator for measuring the effectiveness of putting assets into work.
Operating cycle
time lenght from when company makes an investment of goods and servicies to the time it takes to collect cash from its receivable accounts.
Net operating cycle
period from when company makes an investment assuming the purchase of credit to the time it collects cash from its receivable accounts
Lenght cycle
Provides information about the necesity of company to have liquidity. The longer the operating cycle, the greater the need of liquidity.
Liquidity
ability of companies to satisfy their short-term obligations by using assets that can be more early convert into cash.
Financial risk
the resulting risk from the decision of the company on how to financiate the business by debt or equity.
Solvency ratios
Gives information about the financial risk of a company
Component percentage
involve comparing element in the capital structure
coverage ratio
measures the ability of company to meet interest and other fixed financing costs
Margin and return ratios
gives info about the efficiency and profitability of a company
Margin
portion of revenues that is profit
Return
comparasion between profits and needed investment to obtain profit
Planning of production
Minimum volume of production in which company ensures the cover of their cost through sales and make an adequate level pf profit for the enterprise. Assess business profit/loss by it volume of sales and cost
Variable cost
Or proportion cost, growth in direct proportion to the volume of production.
Fixed cost
cost which remain constant to a certain frame of production volume.
Unit cost
associated cost to the production of one unit good or service. It decrease, given a different volume of production, with constants increasing of production.
Utilization of production capacity
Principle that maximizase the production capacity, expensive equipments must produce using their full capacity
Break-even point
Situation where company generates zero profit, is defined as the production quantity where sales and cost volume of an enterprise are equal.
UPmin (Minimun unit profit)
The minimum profit required for the production of one in-kind unit
Pmin (Minimum profit)
The minimum profit required for the production of the company (whole production)
Cash flor break-even point
Allows company to make a loss for an specific period to cover their expenditures
Depreciation
A type of fixe cost, it shows the non-expenditures components of fixed cost
Cash fixed cost
Expenditures components of fixed cost
Operating laverage
measures the change of operating income for a given company when changes on sales volume occurs.
system of indicators
when indicators are built in a meaningful mutual relationship, complement each other, clarify each other and explain the analysed object in a balance and clear manner
