Financial Analysis

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Author:
Anonymous
ID:
148436
Filename:
Financial Analysis
Updated:
2012-04-18 20:30:03
Tags:
Financial Analysis
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Description:
Accounting Formulas
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  1. Gross Profit Margin
    • Gross Profit / Sales Revenue
    • * Expressed as a percentage

    * Gross Profit = Sales Revenue - COGS
  2. Gross Profit Margin is used to:
    Demonstrate the impact of COGS on financial statements.
  3. EBITDA is an acronym for:
    Earning Before Interest, Tax, Depreciation, and Amortization
  4. EBIDTA Percentage to Sales
    • EBITDA / Sales Revenue
    • * Expressed as a percentage
  5. A drop in EBIDTA to Sales signifies:
    The business is becoming less efficient
  6. Interest Coverage Ratio
    EBITDA / Interest Expense
  7. Net Profit Margin
    • Net Income / Sales Revenue
    • * Expressed as a percentage
  8. Return on Equity
    • Net Income / Average Shareholder's Equity
    • * Expressed as a percentage
  9. Asset Turnover
    Sales Revenue / Average Total Assets
  10. Current Ratio
    Current Assets / Current Liabilities
  11. Quick Ratio
    (Cash + Short Term Investments + Accounts Receivable) / Current Liabilities
  12. Debt-to-Equity Ratio
    Total Liabilities / Total Shareholder's Equity
  13. Days-Sales-Outstanding
    (Average Accounts Receivable / Net Credit Sales) x 365
  14. Accounts Receivable Turnover
    Net Credit Sales / Average Accounts Receivable
  15. Inventory Days on Hand
    (Average Inventory / COGS) x 365
  16. Inventory Turnover
    COGS / Average Inventory
  17. Book Value per Share
    (Shareholder's Equity - Preferred Equity) / Average Number of Common Shares Outstanding
  18. Dividend Payout Ratio
    • Dividends Paid in a Year / Net Income after Tax
    • * Expressed as a percentage
  19. Earning Per Share
    (Net Income - Preferred Dividends) / Average Number of Common Shares Outstanding
  20. Price-Earnings Ratio (P/E Ratio)
    Market Price / Earnings per Share
  21. Horizontal Analysis
    Used to quickly compare the changes, both in dollars and percentages, in a given financial statement from one period to the next.
  22. Vertical Analysis
    Expresses individual accuonts in the same period as a percentage of another. For example, vertical analysis of the income statement indicates each account as a percentage of net sales

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