YFA

Question 1

Trend analysis

Answer 1

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.

Question 2

Common-size/structural/vertical analysis

Answer 2

Financial analysis method for evaluating and comparasion of individual components within financial statements by expressing each item as a percentage of the total

Question 3

Financial ratio analysis

Answer 3

Use of relationships among financial statements accounts for measuring financial conditions and performance of a company.

Question 4

Turnover ratios

Answer 4

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.

Question 5

Operating cycle

Answer 5

time lenght from when company makes an investment of goods and servicies to the time it takes to collect cash from its receivable accounts.

Question 6

Net operating cycle

Answer 6

period from when company makes an investment assuming the purchase of credit to the time it collects cash from its receivable accounts

Question 7

Lenght cycle

Answer 7

Provides information about the necesity of company to have liquidity. The longer the operating cycle, the greater the need of liquidity.

Question 8

Liquidity

Answer 8

ability of companies to satisfy their short-term obligations by using assets that can be more early convert into cash.

Question 9

Financial risk

Answer 9

the resulting risk from the decision of the company on how to financiate the business by debt or equity.

Question 10

Solvency ratios

Answer 10

Gives information about the financial risk of a company

Question 11

Component percentage

Answer 11

involve comparing element in the capital structure

Question 12

coverage ratio

Answer 12

measures the ability of company to meet interest and other fixed financing costs

Question 13

Margin and return ratios

Answer 13

gives info about the efficiency and profitability of a company

Question 14

Margin

Answer 14

portion of revenues that is profit

Question 15

Return

Answer 15

comparasion between profits and needed investment to obtain profit

Question 16

Planning of production

Answer 16

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

Question 17

Variable cost

Answer 17

Or proportion cost, growth in direct proportion to the volume of production.

Question 18

Fixed cost

Answer 18

cost which remain constant to a certain frame of production volume.

Question 19

Unit cost

Answer 19

associated cost to the production of one unit good or service. It decrease, given a different volume of production, with constants increasing of production.

Question 20

Utilization of production capacity

Answer 20

Principle that maximizase the production capacity, expensive equipments must produce using their full capacity

Question 21

Break-even point

Answer 21

Situation where company generates zero profit, is defined as the production quantity where sales and cost volume of an enterprise are equal.

Question 22

UPmin (Minimun unit profit)

Answer 22

The minimum profit required for the production of one in-kind unit

Question 23

Pmin (Minimum profit)

Answer 23

The minimum profit required for the production of the company (whole production)

Question 24

Cash flor break-even point

Answer 24

Allows company to make a loss for an specific period to cover their expenditures

Question 25

Depreciation

Answer 25

A type of fixe cost, it shows the non-expenditures components of fixed cost

Question 26

Cash fixed cost

Answer 26

Expenditures components of fixed cost

Question 27

Operating laverage

Answer 27

measures the change of operating income for a given company when changes on sales volume occurs.

Question 28

system of indicators

Answer 28

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