Term
| SEC Reports - Form 10-K Annual Report |
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Definition
| Due within 90 days of the fiscal year end. Contains audited financial statements. |
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Term
| SEC Reports - Form 10-Q Quarterly Report |
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Definition
| Due within 45 days of the end of the quarter. Financial statements can be unaudited. |
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Term
| SEC Reports - Form 8-K Current Report |
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Definition
| Due within 15 days of the major event date. Financial statements can be unaudited. |
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Term
| Contents of the 10-K Annual Reports for privately-held company |
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Definition
| Four basic financial statements. Related notes (footnotes). Report of independent accountants (auditor's opinion) if the statements are audited. |
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Term
| Contents of the 10-K Annual Reports for PUBLIC company |
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Definition
SEC requires
1. Nonfinancial statements ( letter to stockholders, description of management philosophy, products, successes,etc.)
2. Financial Section (Sec sets minimum disclosure standards for the financial section for public companies) |
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Term
| Return on Equity (NI/Ave SE) |
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Definition
| PROFITABILITY - how much income was earned for every dollar invested by the owners |
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Term
| Return on Assets (NI + Int.Exp(1-tax rate))/Ave TA |
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Definition
| PROFITABILITY - how much income was earned for every dollars of all sources of financing. |
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Term
| Financial Leverage Percentage (ROE - ROA) |
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Definition
| PROFTABILITY - advantage or disadvantage that occurs as the result of using liability financing (leverage) rather than equity financing |
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Term
| Earnings per Share (EPS) (NI/AVE number of shares outstanding for the period) |
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Definition
| PROFITABILITY - ave number of shares based on the number of shares at the beginning and end of the year. only useful across time, not across companies. |
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Term
| Quality of Income (CF from Operating activities / NI) |
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Definition
| PROFITABILITY - higher than 1 indicates high-quality earnings. If lower than 1, would be signal to investigate aggressive accrual accounting. |
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Term
| Profit Margin (NI/Net Sales) |
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Definition
| PROFITABILITY - percentage of each sales dollar that is income |
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Term
| Profitability / Profitability Ratios |
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Definition
| a firm's ability to generate income/revenue relative to its costs. telling us about IS in a condensed way. |
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Term
| Cash Ratio ( Cash + cash Equivalents / CL) |
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Definition
| LIQUIDITY - adequacy of available cash |
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Term
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Definition
| Liquidity - ability of the company to pay current debts as they become due. |
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Term
| Quick Ratio (Quick Assets/CL) |
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Definition
| Liquidity - like current ratio but measures the company's immediate ability to pay debt. Quick assets = Cash and cash equivalents + A/R + ST Investments |
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Term
| Receivable Turnover (Net Credits Sales/ Ave Net receivables) |
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Definition
| Asset Management - how quickly a company collects its A/R |
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Term
| Inventory Turnover (COGS/Ave Inventory) |
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Definition
| Asset Management - how quickly a company sells its inventory |
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Term
| Fixed Asst Turnover (Net Sales rev/Ave Fixed Assets) |
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Definition
| Asset Management - company's ability to generate sales given an investment in fixed assets. more/less efficient in using fixed asset in generating sales. |
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Term
| Total Asset Turnover (Net Sales Rev/ Ave TA |
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Definition
| Asset management - company's ability to generate sales given an investment in Total assets |
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Term
| Times Interest Earned (NI + Int. Exp. + Income tax Exp.)/Int. Exp. |
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Definition
| Solvency - ability to meets its long-term obligations. margin of protection for creditors. how large is long term obligation in relative to its income. |
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Term
| Cash Coverage (CF of Operating Act + Int. and Taxes paid)/Int. Paid |
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Definition
| Solvency -compare cash generated with the cash obligations of the period. |
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Term
| Debt-to-Equity Ratio(Total Liabilities/SE) |
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Definition
| Solvency - amount of liabilities exists for each $1 invested by the owners. the higher the number, the more liability financing, higher risk |
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Term
| TA-to-Equity Ratio(TA/SE) |
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Definition
| Solvency- 1 + Liability/SE. higher = more debt |
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