# Study sets matching "final exam financial statement analysis ratios"

Study sets

Diagrams

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Current Assets / Current Liabilities

(Cash + Short-Term Investments + Accoun…

Total Liabilities / Total Assets

Long-Term Debt / (Long-Term Debt + Stoc…

Current Ratio

Quick Ratio

Debt Ratio

Long-Term Debt to Capital Ratio

Current Assets / Current Liabilities

Current Ratio

(Cash + Short-Term Investments + Accoun…

Quick Ratio

Horizontal Analysis

Trend Percentage

Vertical Analysis

Working Capital

($ change from one period to the next) / ($ amount of base yea…

(Any year $) / (Base year $) x 100

(Each income statement item) / (Net Sales Revenue) x 100

Current assets - Current liabilities

Horizontal Analysis

($ change from one period to the next) / ($ amount of base yea…

Trend Percentage

(Any year $) / (Base year $) x 100

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Profitablity Ratios

liquidity ratios

Total Asset Turnover Ratio (Efficiency…

Inventory Turnover Ratio (Efficiency Ra…

gross operating net profit

current quick

Sales (Revenues) / Total Assets... Efficiency with which a compa…

Costs of Goods sold/ inventory

Profitablity Ratios

gross operating net profit

liquidity ratios

current quick

Two phases of financial statement analy…

Computation phase

Vertical analysis on the balance sheet

Horizontal analysis

Computation and interpretation

Vertical analysis horizontal n ratio analysis

On the balance sheet everything is recorded as a percentage of…

Percentage change for individual items on the financial statem…

Two phases of financial statement analy…

Computation and interpretation

Computation phase

Vertical analysis horizontal n ratio analysis

Dividend per Share (DPS)

Dividend Yield (DY)

Divided Payout Ratio (DPR)

Earning per share (EPS)

Dividends paid and declared / No. of shares issued

DPS / Marks Price of shares

(Dividends Paid and declared / Profit for year) * 100

Profit for year / No. of shares in issue

Dividend per Share (DPS)

Dividends paid and declared / No. of shares issued

Dividend Yield (DY)

DPS / Marks Price of shares

Financial ratios provide a profile of a…

financial ratios allow a comparison of…

financial ratios are ............ measu…

financial ratios eliminate differences…

1. Trends/levels... 2. economic characteristics ... 3. competitive s…

risk and return

relative

scale

Financial ratios provide a profile of a…

1. Trends/levels... 2. economic characteristics ... 3. competitive s…

financial ratios allow a comparison of…

risk and return

Gross Profit Margin

Profit Margin

Asset Turnover

Return on Assets

Gross Profit... --------------... Revenue... -captures percentage of re…

Net Income... --------------... Revenue... -measure of percentage of ea…

Net Sales... -----------------------... Average Total Assets... -measur…

Net Income... -----------------------... Average total Assets... -compa…

Gross Profit Margin

Gross Profit... --------------... Revenue... -captures percentage of re…

Profit Margin

Net Income... --------------... Revenue... -measure of percentage of ea…

Current Ratio

Acid-Test Ratio

Accounts Receivable Turnover

Inventory Turnover

Current Assets / Current Liabilities

Cash + Short-term Investments + Current Receivables / Current…

Net Sales / Avg Accounts Receivable, net

Cost of Goods Sold / Avg Inventory

Current Ratio

Current Assets / Current Liabilities

Acid-Test Ratio

Cash + Short-term Investments + Current Receivables / Current…

Working Capital

Current Ratio

Quick Ratio

Accounts Receivable Turnover

Current Assets - Current Liabilities ... Measures company's abil…

Current Assets... ----------------------... Current Liabilities... Me…

Quick Assets [Cash, A/R, Marketable Securities]... --------------…

Sales... ---------------------------------... Average Accounts Recei…

Working Capital

Current Assets - Current Liabilities ... Measures company's abil…

Current Ratio

Current Assets... ----------------------... Current Liabilities... Me…

debt-to-equity ratio

net working capital

current ratio

quick ratio

total liabilities/total stockholders' equity

current assets - current liabilities

current assets/current liabilities

quick assets/current liabilities

debt-to-equity ratio

total liabilities/total stockholders' equity

net working capital

current assets - current liabilities

Gross Profit Margin

Net Profit Margin

Return on Assets (ROA)

Return on Equity (ROE)

Gross Profit/Total Revenue

Net Income/Total Revenue

Net Income/Average Total Assets

Net Income/Average Equity

Gross Profit Margin

Gross Profit/Total Revenue

Net Profit Margin

Net Income/Total Revenue

inventory turnover

accounts receivable turnover

total asset turnover

days sales in inventory

cost of goods sold/average inventory

net sales/average accounts receivable

net sales/average total assets

(ending inventory/cost of goods sold)*365

inventory turnover

cost of goods sold/average inventory

accounts receivable turnover

net sales/average accounts receivable

Working Capital

Current Ratio

Inventory Turnover

Days Supply of Inventory

Current Assets - Current Liabilities

Current Assets/Current Liabilities

Cost of Goods Sold/Inventories

365/Inventory Turnover

Working Capital

Current Assets - Current Liabilities

Current Ratio

Current Assets/Current Liabilities

current ratio

acid-test ratio

accounts receivable turnover

inventory turnover

short-term debt paying ability

immediate short-term debt-paying ability

efficiency of collection

efficiency of inventory management

current ratio

short-term debt paying ability

acid-test ratio

immediate short-term debt-paying ability

Current ratio

Acid-test ratio

Accounts receivables turnover

Inventory turnover

Current assets/ current liabilities

Cash+ Short-term investments+current receivables/ current liab…

Net sales/ Average accounts receivable, net

Costs of goods sold/ Average inventory

Current ratio

Current assets/ current liabilities

Acid-test ratio

Cash+ Short-term investments+current receivables/ current liab…

Debt to Total Assets

Debt to Equity

Short-Term Debt Ratio

Times Interest Earned

Total Liabilities/Total Assets

Total Liabilities/Total Equity

Current Liabilities/Total Liabilities

EBIT/Interest Expense

Debt to Total Assets

Total Liabilities/Total Assets

Debt to Equity

Total Liabilities/Total Equity

Current Ratio

Quick Ratio

Debt-Equity Ratio

Days Sales in Inventory

CA/CL;... Rule of thumb : 2 for small companes (<10m assets), 1.5…

(Cash+Short-Term Investments+Current Receivables)/Current Liab…

(Long-Term Debt+Notes Payable)/Equity... 10 for financial servic…

Inventory/Daily COGS(COGS/# days in acct period)... Rule of thum…

Current Ratio

CA/CL;... Rule of thumb : 2 for small companes (<10m assets), 1.5…

Quick Ratio

(Cash+Short-Term Investments+Current Receivables)/Current Liab…

Profitability Ratios

Tests of Profitability

Liquidity

Tests of Liquidity

ROE, ROA, Financial Leverage Percentage, EPS, Quality of Incom…

focus on measuring the adequacy of income by comparing it to o…

refers to a company's ability to meet its currently maturing d…

focus on the relationship between current assets and current l…

Profitability Ratios

ROE, ROA, Financial Leverage Percentage, EPS, Quality of Incom…

Tests of Profitability

focus on measuring the adequacy of income by comparing it to o…

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Current Ratio

Quick Ratio

Cash Flow Liquidity

Accounts Receivable Turnover

Current Assets/Current Liabilities

(Cash+Short-Term Investments + Accounts Receivable)/Current Li…

(Cash+Short-Term Investments+Cash Flow from Operations)/Curren…

Net Sales/Average Accounts Receivable

Current Ratio

Current Assets/Current Liabilities

Quick Ratio

(Cash+Short-Term Investments + Accounts Receivable)/Current Li…

Current Ratio

Acid-test Ratio

quick assets

Accounts Receivable Turnover Ratio

current assets divided by current liabilities

quick assets divided by current liabilities

cash, short-term investments, accounts receivable

net sales divided by average accounts receivable

Current Ratio

current assets divided by current liabilities

Acid-test Ratio

quick assets divided by current liabilities

Earnings Per Share

Return on Equity

Return on Assets

Financial Leverage

Net Income/Shares

Net Income/Stockholder's Equity

Net Income/Avg Assets (operating profitability)

Avg Assets/Avg Equity

Earnings Per Share

Net Income/Shares

Return on Equity

Net Income/Stockholder's Equity