Term
|
Definition
| current assets/current liabilities |
|
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Term
|
Definition
| (current assets - inventory)/current liabilities |
|
|
Term
| average collection period |
|
Definition
| accounts receivable/ (% on credit*sales/365) |
|
|
Term
| accounts receivable turnover |
|
Definition
| % sales on credit * sales/accounts receivable |
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Term
|
Definition
| sales/(total assets - current assets) |
|
|
Term
| Operating Income Return on Investment |
|
Definition
| Earnings Before Interest and Taxes (aka operating income)/total assets |
|
|
Term
|
Definition
| total liabilities/total assets |
|
|
Term
|
Definition
| earnings before interest and taxes/interest expense |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| earnings before interest and taxes/sales |
|
|
Term
|
Definition
|
|
Term
|
Definition
| ROE = Net Income/sales x sales/assets x assets/equity |
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Term
|
Definition
|
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Term
|
Definition
|
|
Term
| Cash Flow from Operations |
|
Definition
| Net Income + depreciation expense - increase in assets + decrease in liabilities |
|
|
Term
| Cash Flows from Investment |
|
Definition
| gross property, plant, and equipment change |
|
|
Term
| Cash Flows from Financing |
|
Definition
| Notes Payable + Long-term debt - dividends |
|
|
Term
|
Definition
| Retained Earnings from year 1 + Net Income from year 2 - Retained Earnings from year 2 |
|
|
Term
|
Definition
| Cost of Goods Sold/inventory |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| EBIT - cash tax payments + depreciation - CAPEX - increases in NWC |
|
|
Term
| NWC (net working capital) |
|
Definition
| current assets - current liabilities |
|
|
Term
| CAPEX (capital expenditure) |
|
Definition
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