Financial Management Final Exam
Order by
12 terms
Terms | Definitions |
|---|---|
 Four Major Financial Statements | Balance Sheet, Income Statements, Statement of Cash Flows, Statement of Retained Earnings |
| Balance sheet represents | a "snapshot" in time. |
| Income Statement represents | a "period" of time. |
| Formula for Approximating Cash Flow | NCF=Net Income + Depreciation + Amortization |
| EBIT | Earnings Before Interest and Tax |
| Another Name for EBIT and its representation | Operating Income and Sustainability |
| Formula for NOPAT | EBIT * (1-T) |
| Four types of Financial Ratios | Liquidity, Asset Management, Debt Management, Profitability |
| Liquidity Ratios | Shows relationship between firms cash/current assets/liabilities. Ex: Current Ratio, Quick Ratio |
| Assets Management | Helps measure how effective firm uses assets. Ex: Inventory Turnover, Days Sales Outstanding |
| Debt Management | Determines firms leverage when involving debt. Ex: Deb Ratio, Debt to Equity Ratio |
| Profitability Ratios | Helps figure out what percent the company made. Ex: Profit Margin on Sales/Return on Total Assets |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.