Shared Flashcard Set

Details

Financial Analysis
Ratios for Exam 1
30
Accounting
Graduate
09/17/2019

Additional Accounting Flashcards

 


 

Cards

Term
Basic Earnings Per Share (EPS)
Definition
(Net Income - Preferred Stock Dividends - Net Income available to parent company common shareholders) / (Weighted Average of Common Shares Outstanding)
Term
Return on Assets (ROA)
Definition
Net Income + [(1-Tax Rate) x Interest Expense] + Non-Controlling Interest in Earnings / Average Total Assets
Term
Profit Margin
Definition
Net Income + [(1-Tax Rate) x Interest Expense] + Non-Controlling Interest in Earnings / Sales
Term
Asset Turnover
Definition
Sales / Average Total Assets
Term
Accounts Receivable Turnover
Definition
Net Sales on Account / Average Accounts Receivable
Term
Inventory Turnover
Definition
Cost of Goods Sold / Average Inventory
Term
Fixed Assets Turnover
Definition
Sales / Average Fixed Assets (PPE, Land)
Term
Cash Turnover
Definition
Sales / Average Cash and Cash Equivalents
Term
Current Asset Turnover
Definition
Sales / Average Current Assets
Term
Return on Common Shareholders' Equity (ROCE)
Definition
Net Income - Preferred Stock Dividend / Average Common Stock Equity
Term
Profit Margin for ROCE
Definition
Net Income - Preferred Stock Dividend / Sales
Term
Capital Structure Leverage
Definition
Average Total Assets / Average Common Stockholders' Equity
Term
Current Ratio
Definition
Current Assets / Current Liabilities
Term
Quick Ratio
Definition
Cash and Cash Equivalents + Short-Term Investments + Accounts Receivable / Current Liabilities
Term
Operating Cash Flow to Current Liabilities Ratio
Definition
Cash Flow from Operations / Average Current Liabilities
Term
Accounts Payable Turnover
Definition
Purchases / Average Accounts Payable
Term
Liabilities to Assets Ratio
Definition
Total Liabilities / Total Assets
Term
Liabilities to Shareholders' Equity Ratio
Definition
Total Liabilities / Total Shareholders' Equity for Parent
Term
Long-Term Debt to Shareholders' Equity Ratio
Definition
Long-Term Debt / Total Shareholders' Equity
Term
Interest Coverage Ratio (Net Income Basis)
Definition
Net Income + Interest Expense + Income Tax Expense + Net Income Attributable to Non-controlling Interests / Interest Expense
Term
Interest Coverage Ratio (Cash Flow Basis)
Definition
Cash Flow from Operations + Payments for Interest and Income Taxes / Cash Payments for Interest
Term
Operating Cash Flow to Total Liabilities Ratio
Definition
Cash Flow from Operations / Average Total Liabilities
Term
Long-Term Debt to Long-Term Capital Ratio
Definition
Long-Term Debt / Long-Term Debt + Total Shareholders' Equity for Parent
Term
Net Operating Profit After Taxes (NOPAT)
Definition
Operating Income + Interest and Dividend Income - (Operating Income + Interest and Dividend Income) x Tax Rate
Term
Operating ROA
Definition
Net Operating Profit After Taxes / Average Net Open Assets
Term
Leverage
Definition
Average Net Financing Obligation / Average Common Equity
Term
Net Financing Expense (After Tax)
Definition
After Tax Interest Expense + Preferred Stock Dividend + Net Income to Noncurrent Interests
Term
Net Borrowing Rate
Definition
Net Financing Expense (After Tax) / Average Net Financing Obligation
Term
Spread
Definition
Operating ROA - Net Borrowing Rate
Term
Days of working capital financing needed from other sources
Definition
365 / A/R Turnover + 365 / Inventory Turnover - 365 / A/P Turnover
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