Shared Flashcard Set

Details

Intro. to Finance 2nd Test
formulas
9
Finance
Undergraduate 2
02/22/2009

Additional Finance Flashcards

 


 

Cards

Term
Days Sales in Receivables
Definition
Accounts Receivable / Sales in Days

take Sales/365
Term
Equity Multiplier (EM)
Definition
Total Assets / Equity

increase EM = increased 'leverage'
increase EM = firm doin' worse
Term
Total Asset Turnover (TAX)
Definition
Sales / Total Assets

how effectively are assets used
Term
Profit Margin (PM)
Definition
Net Income / Sales

net income = (sales - expenses)
Term
Basic DuPont relation (ROE = ???)
Definition
ROE = EM x TAX x PM
Term
Rule of 72
Definition
72 / years = percentage needed to double money (approximately)
Term
ROE
Definition
Net Income / Equity
Term
Gross Profit Margin
Definition
(Sales - CGS) / Sales
Term
Inventory Turnover Ratio
Definition
CGS / Average Inventory
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