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Practical Financial Management
Chapter 3: Cash Flows and Financial Analysis
17
Finance
Undergraduate 3
08/13/2011

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Cards

Term
Financial Analysts
Definition
Interprets information about companies and makes recommendations to investors.
Term
Annual Report
Definition
A firm's _____ _____ is the primary source of financial information about it.
Term
Orientation
Definition
The _______ of the financial analyst is critical and investigative.
Term
Statement of Cash Flows
Definition
The _______ of ____ _____ presents operating, investing, and financing activities seperately.
Term
Investing Activities
Definition
Typically includes purchasing fixed assets in the Statement of Cash Flows.
Term
Financing Activities
Definition
Deals with the Capital accounts, Long-term debt, and Equity in the Statement of Cash Flows.
Term
Free Cash Flow
Definition
Cash generated beyond reinvestment needs is called?
Term
Cash Conversion Cycle
Definition
Product is converted into cash, which is transformed into more product creates what kind of cycle?
Term
Financial Ratios
Definition
What is formed from sets of financial statement figures and highlight different aspects of performance?
Term
Common Size Income Statement
Definition
What kind of statement presents each line item at a percent of revenue?
Term
Liquidity
Asset Management
Debt Management
Profitability
Market Value
Definition
What 5 categories do the ratios fall into?
Term
Liquidity Ratios
Definition
Which ratio measures the ability to meet short-term financial obligations?
Term
Average Collection Period (ACP)
Definition
Which ratio measures the time it takes to collect on credit sales?
Term
Inventory Turnover
Definition
Which ratio gives an indication of the quality of inventory as well as how well it is managed?
Term
Return on Sales (ROS)
Definition
Which ratio measures control of the income statement: revenue, cost, and expense?
Term
Price/Earnings Ratio
Definition
Which ratio is an indication of the value the stock market places on the company?
Term
DU Pont Equations
Definition
What equations express relationships between ratios that give insights into successful operation?
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