Test your basic knowledge |

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. Units in production
Total Debt/Total Asset
365/Inventory turnover
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CA/CL

2. Debt to capital
Total debt/(Total debt+Total shareholders equity)
365/payable turnover ratio
CFO/Total debt
CFO-fixed capital investment+net borrowing

3. Original DuPont:ROE
STD NI/Mean NI
NI/average total equity
[NI/sales][Sales/Assets][Assets/Equity]
Begininng inventories+purchases-COGS

4. Fixed assets turnover
Total Debt/Total Asset
(CFO-preferred dividends)/weighted average number of common shares
Cost-Salvage/useful Life
Revenue/Average Fixed Assets

5. Number of days of payable
365/payable turnover ratio
Begininng inventories+purchases-COGS
Revenue/Average Total Assets
365/Inventory turnover

6. CF per share
COGS/Average Inventory
365/payable turnover ratio
(CFO-preferred dividends)/weighted average number of common shares
EBT/Revenue

7. Defensive interval
CFO/cash paid for long term asset
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Total Debt/Total Asset
STD NI/Mean NI

8. CF to Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(CFO-preferred dividends)/weighted average number of common shares
CFO/Net Revenue
Annual Sales/Average receivables

9. FCFF
EBIT/total asset
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/dividends paid
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

10. Return on common equity
NI/Revenue
NI available to common/average common equity
ROCE - ROA
Cost-Salvage/useful Life

11. Quick Ratio
Revenue/Average Fixed Assets
Total Debt/Total Asset
STD OI/mean OI
Cash+Marketable Securities+ Receivables)/Current Liabilities

12. Cash to ROE
Begininng inventories+purchases-COGS
Total Debt/Total shareholders' equity
CFO/average total equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

13. Debt to equity

14. Pretax Income
CFO/cash long-term debt repayment
CFO/Net Revenue
EBT/Revenue
STD OI/mean OI

15. Return on equity
CFO/cash paid for long term asset
NI/Revenue
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI/average total equity

16. CV Operating Income
Revenue/Average Total Assets
STD OI/mean OI
(NI-preferred dividends)/weighted average of common shares
Average Total Asset/Average total equity

17. Inventory turnover
Annual Sales/Average receivables
COGS/Average Inventory
Cost-Salvage/useful Life
Average Total Asset/Average total equity

18. Income tax expense
Taxes payable+Change in DTL - Change in DTA
NI/total capital
CFO/average total assets
EBIT/total asset

19. Basic EPS
ROCE - ROA
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(NI-preferred dividends)/weighted average of common shares
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

20. FCFE
365/payable turnover ratio
CFO-fixed capital investment+net borrowing
Revenue/Average Total Assets
(market rate at issue)*(balance sheet value of the liability at beg period)

21. 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/Total debt
STD NI/Mean NI
Revenue/Average Total Assets

22. Reinvestment
STD of Sales/Mean Sales
CFO/cash paid for long term asset
CFO/average total assets
Average Total Asset/Average total equity

23. Investing and financing
CFO/cash outflows from investing and financing
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/average total equity
CFO/operating income

24. Operating return on assets
EBIT/total asset
STD of Sales/Mean Sales
Revenue/Average Total Assets
Total Debt/Total Asset

25. Interest expense
(Cash+Marketable Securities)/Current Liabilities
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Net Revenue
Average Total Asset/Average total equity

26. Debt to Asset
(2/useful life)*(Cost-Depreciation)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Begininng inventories+purchases-COGS
Total Debt/Total Asset

27. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CA/CL
CFO/dividends paid
CFO/cash outflows from investing and financing

28. Cash to ROA
CFO/cash outflows from investing and financing
CFO/cash long-term debt repayment
CFO/average total assets
CFO/dividends paid

29. Payable Turnover
CFO/Total debt
Purchases/Average trade payable
Revenue/Average Fixed Assets
STD of Sales/Mean Sales

30. Cash to income
ROCE - ROA
Revenue/Average Total Assets
Total Debt/Total Asset
CFO/operating income

31. Gross Profit Margin
Gross Profit/Revenue
CFO/average total assets
Cash+Marketable Securities+ Receivables)/Current Liabilities
STD NI/Mean NI

32. Operating Profit Margin
365/payable turnover ratio
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(EBIT+lease payments)/(interest payments+lease payments)
EBIT/Revenue

33. Receivables Turnover
Annual Sales/Average receivables
Begininng inventories+purchases-COGS
Gross Profit/Revenue
CA/CL

34. Return on total capital
Total Debt/Total Asset
(NI-preferred dividends)/weighted average of common shares
STD of Sales/Mean Sales
NI/total capital

35. CV NI
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Fixed Assets
STD NI/Mean NI
CFO/cash paid for long term asset

36. Cash Conversion Cycle
CFO/cash long-term debt repayment
COGS/Average Inventory
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
EBIT/Revenue

37. Current Ratio
CA/CL
[NI/sales][Sales/Assets][Assets/Equity]
STD NI/Mean NI
COGS/Average Inventory

38. Fixed charged coverage
CFO/dividends paid
Gross Profit/Revenue
(EBIT+lease payments)/(interest payments+lease payments)
Cash+Marketable Securities+ Receivables)/Current Liabilities

39. Net Profit Margin
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
365/receivables turnover
NI/Revenue
STD OI/mean OI

40. Working Capital Turnover
CFO/Net Revenue
COGS/Average Inventory
Revenue/Average Working Capital
365/receivables turnover

41. Debt payment
Revenue/Average Fixed Assets
Total Debt/Total shareholders' equity
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/cash long-term debt repayment

42. Ending inventories
CFO/cash outflows from investing and financing
Revenue/Average Total Assets
Revenue/Average Fixed Assets
Begininng inventories+purchases-COGS

43. Days of sales outstanding
CA/CL
CFO/cash outflows from investing and financing
365/receivables turnover
Gross Profit/Revenue

44. CV sales
CFO/Total debt
STD of Sales/Mean Sales
Begininng inventories+purchases-COGS
STD OI/mean OI

45. Debt coverage
CFO/Total debt
COGS/Average Inventory
Revenue/Average Fixed Assets
CFO/average total equity

46. Straight Line depreciation
(CFO-preferred dividends)/weighted average number of common shares
Cost-Salvage/useful Life
EBIT/total asset
(market rate at issue)*(balance sheet value of the liability at beg period)

47. Day of inventory on hand
CA/CL
365/Inventory turnover
[NI/sales][Sales/Assets][Assets/Equity]
CFO/cash paid for long term asset

48. Total asset turnover
ROCE - ROA
(2/useful life)*(Cost-Depreciation)
CFO/average total assets
Revenue/Average Total Assets

49. DDB
(CFO-preferred dividends)/weighted average number of common shares
(2/useful life)*(Cost-Depreciation)
Annual Sales/Average receivables
365/receivables turnover

50. Dividend payment
CFO/dividends paid
(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
Gross Profit/Revenue