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Financial Statement Analysis

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. DDB
CFO/Total debt
Taxes payable+Change in DTL - Change in DTA
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity

2. Leverage
CFO/dividends paid
CFO/Net Revenue
CA/CL
ROCE - ROA

3. Number of days of payable
(market rate at issue)*(balance sheet value of the liability at beg period)
365/payable turnover ratio
EBT/Revenue
(EBIT+lease payments)/(interest payments+lease payments)

4. Total asset turnover
CFO/Total debt
365/receivables turnover
Total debt/(Total debt+Total shareholders equity)
Revenue/Average Total Assets

5. Investing and financing
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(2/useful life)*(Cost-Depreciation)
CFO/cash outflows from investing and financing
Revenue/Average Working Capital

6. Gross Profit Margin
CFO/Total debt
ROCE - ROA
Total Debt/Total Asset
Gross Profit/Revenue

7. Defensive interval
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/average total equity
ROCE - ROA
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

8. Current Ratio
CA/CL
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO-fixed capital investment+net borrowing
(CFO-preferred dividends)/weighted average number of common shares

9. CV sales
STD of Sales/Mean Sales
365/Inventory turnover
CFO/operating income
CFO/Net Revenue

10. Debt coverage
Total Debt/Total Asset
CFO/Net Revenue
CFO/Total debt
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

11. Operating Profit Margin
CFO/cash long-term debt repayment
(CFO-preferred dividends)/weighted average number of common shares
EBIT/total asset
EBIT/Revenue

12. Cash to ROA
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/cash long-term debt repayment
CFO/average total assets
Taxes payable+Change in DTL - Change in DTA

13. Fixed assets turnover
CFO/operating income
Revenue/Average Fixed Assets
CFO/Total debt
STD of Sales/Mean Sales

14. Income tax expense
Taxes payable+Change in DTL - Change in DTA
EBIT/Revenue
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
(NI-preferred dividends)/weighted average of common shares

15. Reinvestment
CFO/cash paid for long term asset
Total Debt/Total shareholders' equity
(Cash+Marketable Securities)/Current Liabilities
365/receivables turnover

16. Debt payment
Total Debt/Total shareholders' equity
365/receivables turnover
COGS/Average Inventory
CFO/cash long-term debt repayment

17. Payable Turnover
Purchases/Average trade payable
CFO/cash paid for long term asset
Taxes payable+Change in DTL - Change in DTA
CFO/operating income

18. Financial Leverage
Average Total Asset/Average total equity
(NI-preferred dividends)/weighted average of common shares
Taxes payable+Change in DTL - Change in DTA
CFO/cash paid for long term asset

19. Fixed charged coverage
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
(EBIT+lease payments)/(interest payments+lease payments)
Purchases/Average trade payable
CFO/cash paid for long term asset

20. Cash to income
CA/CL
CFO/cash paid for long term asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/operating income

21. Working Capital Turnover
Revenue/Average Working Capital
CFO/Total debt
ROCE - ROA
NI/Revenue

22. CV Operating Income
CFO/cash outflows from investing and financing
Total Debt/Total shareholders' equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD OI/mean OI

23. Basic EPS
COGS/Average Inventory
Begininng inventories+purchases-COGS
CFO/cash paid for long term asset
(NI-preferred dividends)/weighted average of common shares

24. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Taxes payable+Change in DTL - Change in DTA
Gross Profit/Revenue
Revenue/Average Working Capital

25. CF per share
NI/total capital
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(CFO-preferred dividends)/weighted average number of common shares
NI available to common/average common equity

26. Cash Ratio
EBT/Revenue
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(Cash+Marketable Securities)/Current Liabilities
NI/average total equity

27. Receivables Turnover
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
COGS/Average Inventory
Annual Sales/Average receivables
CFO-fixed capital investment+net borrowing

28. Day of inventory on hand
Begininng inventories+purchases-COGS
CFO/Total debt
365/Inventory turnover
EBIT/Revenue

29. Units in production
EBIT/Revenue
STD OI/mean OI
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(NI-preferred dividends)/weighted average of common shares

30. Debt to capital
STD of Sales/Mean Sales
Total debt/(Total debt+Total shareholders equity)
(market rate at issue)*(balance sheet value of the liability at beg period)
NI available to common/average common equity

31. CV NI
NI/total capital
EBIT/Revenue
STD NI/Mean NI
Cost-Salvage/useful Life

32. Operating return on assets
NI/average total equity
EBIT/total asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Begininng inventories+purchases-COGS

33. Days of sales outstanding
CFO/cash outflows from investing and financing
NI available to common/average common equity
STD OI/mean OI
365/receivables turnover

34. Straight Line depreciation
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
CFO/operating income
Cost-Salvage/useful Life

35. Return on total capital
CFO/average total equity
Revenue/Average Total Assets
EBT/Revenue
NI/total capital

36. Interest expense
Taxes payable+Change in DTL - Change in DTA
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(market rate at issue)*(balance sheet value of the liability at beg period)
NI/Revenue

37. Debt to equity

38. Interest coverage
CA/CL
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(EBIT+lease payments)/(interest payments+lease payments)
(CFO+interest paid+taxes paid )/interest paid

39. Original DuPont:ROE
CA/CL
365/payable turnover ratio
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
[NI/sales][Sales/Assets][Assets/Equity]

40. Return on equity
Cost-Salvage/useful Life
STD NI/Mean NI
CFO/Net Revenue
NI/average total equity

41. Quick Ratio
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Revenue/Average Working Capital
Cash+Marketable Securities+ Receivables)/Current Liabilities
365/receivables turnover

42. Dividend payment
STD NI/Mean NI
CFO/dividends paid
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

43. Debt to Asset
Begininng inventories+purchases-COGS
STD OI/mean OI
Total Debt/Total Asset
(NI-preferred dividends)/weighted average of common shares

44. Net Profit Margin
EBT/Revenue
NI/Revenue
EBIT/Revenue
COGS/Average Inventory

45. Return on common equity
CFO/average total equity
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI available to common/average common equity
Average Total Asset/Average total equity

46. Cash to ROE
CFO/cash paid for long term asset
CFO/average total equity
Cost-Salvage/useful Life
Purchases/Average trade payable

47. FCFF
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(CFO+interest paid+taxes paid )/interest paid
Purchases/Average trade payable
Begininng inventories+purchases-COGS

48. FCFE
(NI-preferred dividends)/weighted average of common shares
EBIT/total asset
CFO-fixed capital investment+net borrowing
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

49. Return on Asset
Revenue/Average Fixed Assets
CFO/Net Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Cost-Salvage/useful Life

50. Diluted EPS
(NI-preferred dividends)+(convertible preferred dividends)+(convertible debt interest)*(1-T)/(weighted average of common shares+conv. preferred shares+conv.of debt+issuable from stock option)
CFO/cash outflows from investing and financing
STD NI/Mean NI
(Cash+Marketable Securities)/Current Liabilities