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Details Title: Corp finance Description: TEst #1 Total Flash Cards: 25 Created: 10/10/2006 15:58:47	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term current Ratio Definition Current Assets/Current liabilities Term QUick ratio Definition (Current Assets - Inventory)/Current liabilities Term working capital $ value Definition current assets - current liailities Term Debt ratio Definition total debt/total assets Term Debt to equity ratio Definition total debt/Total equity Term Accounts recievable turnover Definition Total credit sales/average accounts recievable Term average collection period Definition 365/average recievable turnover Term INventory turnover Definition Cost of GOods sold/average inventory Term Fixed asset turnover Definition Total revenue/Fixed assets This shows how much sales you generalte on fixed assets Term total asset turnover Definition total revenue/total assets Term asset mix Definition current assets (which is TA-FA) / fixed assets Term Gross profit margin Definition Gross profit / Total revenue Term operating profit margin Definition EBIT / Total revenue Term Times interest earned Definition EBIT / Interest Term Pre tax Margin Definition EBT / Total revenue Term Net Profit margin Definition Net after tax income / Total revenue Term Earnigns per share Definition Earnings available for common / # of outstanding common share Term After tax cashflow Definition Earnings available for common + Depreciation Term Gross cash conversion Definition Delivery + Production+ Credit period = how many days. Term net Cash conversion Definition = Gross cash conversion - defferal defferal is how long before you have to make YOUR payments Term Degree of operating Leverage (DOL) Definition % change in EBIT/ % Change in Total Revenue Term Degree of Financial Leverage (DFL) Definition % Change in Net revenue/ % change in EBIT Shows that the bottom line is growing at certain % of revenue. Term Degree of Combined leverage (DCL) Definition % Change in Net revenue/ % change in Total revenue. shows by how many times we are growing from our revenue. Term Payout ratio Definition % of Earnings available for common. which equals your dividend. Term Dividend per share Definition Dividend/ # of shares in common.