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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. Defensive interval
STD OI/mean OI
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
ROCE - ROA

2. Cash Conversion Cycle
Revenue/Average Working Capital
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/cash long-term debt repayment
Revenue/Average Fixed Assets

3. Return on common equity
NI available to common/average common equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO-fixed capital investment+net borrowing
EBT/Revenue

4. CF to Revenue
CFO-fixed capital investment+net borrowing
CFO/Net Revenue
NI/average total equity
Annual Sales/Average receivables

5. Debt coverage
Taxes payable+Change in DTL - Change in DTA
Gross Profit/Revenue
CFO/Total debt
ROCE - ROA

6. Receivables Turnover
EBIT/total asset
Annual Sales/Average receivables
CFO/cash paid for long term asset
Revenue/Average Fixed Assets

7. Debt to Asset
Total Debt/Total Asset
CFO-fixed capital investment+net borrowing
STD NI/Mean NI
STD OI/mean OI

8. Gross Profit Margin
EBT/Revenue
365/receivables turnover
Gross Profit/Revenue
EBIT/Revenue

9. Diluted EPS
(CFO+interest paid+taxes paid )/interest paid
CFO/average total equity
(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)
[(Orginal Cost-Salvage)/Life in output units] * output units in production

10. Debt to equity

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11. Quick Ratio
NI/total capital
Cash+Marketable Securities+ Receivables)/Current Liabilities
Purchases/Average trade payable
Total Debt/Total Asset

12. Inventory turnover
Total Debt/Total Asset
COGS/Average Inventory
365/Inventory turnover
Taxes payable+Change in DTL - Change in DTA

13. Leverage
CFO/cash paid for long term asset
CFO/Net Revenue
STD NI/Mean NI
ROCE - ROA

14. DDB
(2/useful life)*(Cost-Depreciation)
Purchases/Average trade payable
(EBIT+lease payments)/(interest payments+lease payments)
NI available to common/average common equity

15. Debt payment
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/cash long-term debt repayment
Total Debt/Total Asset
(NI-preferred dividends)/weighted average of common shares

16. Return on equity
Revenue/Average Fixed Assets
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Total Debt/Total Asset
NI/average total equity

17. Cash Ratio
[NI/sales][Sales/Assets][Assets/Equity]
365/receivables turnover
(Cash+Marketable Securities)/Current Liabilities
Cash+Marketable Securities+ Receivables)/Current Liabilities

18. CV Operating Income
STD OI/mean OI
STD NI/Mean NI
Average Total Asset/Average total equity
Cost-Salvage/useful Life

19. FCFF
NI/Revenue
Revenue/Average Fixed Assets
CA/CL
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

20. Fixed charged coverage
STD OI/mean OI
CFO/Net Revenue
(EBIT+lease payments)/(interest payments+lease payments)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

21. CV sales
STD of Sales/Mean Sales
(2/useful life)*(Cost-Depreciation)
NI/average total equity
EBT/Revenue

22. Operating Profit Margin
EBIT/Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/cash paid for long term asset

23. Pretax Income
EBT/Revenue
CFO/operating income
ROCE - ROA
CA/CL

24. Income tax expense
Taxes payable+Change in DTL - Change in DTA
(CFO+interest paid+taxes paid )/interest paid
[(Orginal Cost-Salvage)/Life in output units] * output units in production
[NI/sales][Sales/Assets][Assets/Equity]

25. Total asset turnover
Revenue/Average Total Assets
Begininng inventories+purchases-COGS
STD OI/mean OI
[(Orginal Cost-Salvage)/Life in output units] * output units in production

26. Interest coverage
STD OI/mean OI
Begininng inventories+purchases-COGS
Purchases/Average trade payable
(CFO+interest paid+taxes paid )/interest paid

27. Return on total capital
STD of Sales/Mean Sales
Cost-Salvage/useful Life
365/receivables turnover
NI/total capital

28. Number of days of payable
CFO/average total equity
NI/average total equity
365/payable turnover ratio
(market rate at issue)*(balance sheet value of the liability at beg period)

29. FCFE
NI/total capital
CFO-fixed capital investment+net borrowing
Total Debt/Total shareholders' equity
Revenue/Average Working Capital

30. Days of sales outstanding
365/receivables turnover
CFO/Total debt
COGS/Average Inventory
Revenue/Average Working Capital

31. Cash to income
Revenue/Average Total Assets
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/operating income
CFO/dividends paid

32. CV NI
STD NI/Mean NI
Cost-Salvage/useful Life
Gross Profit/Revenue
[NI/sales][Sales/Assets][Assets/Equity]

33. Straight Line depreciation
Cost-Salvage/useful Life
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Revenue/Average Working Capital
(2/useful life)*(Cost-Depreciation)

34. Working Capital Turnover
(EBIT+lease payments)/(interest payments+lease payments)
Total Debt/Total shareholders' equity
Revenue/Average Working Capital
STD NI/Mean NI

35. Current Ratio
EBIT/total asset
[NI/sales][Sales/Assets][Assets/Equity]
CA/CL
CFO/Total debt

36. Cash to ROA
Revenue/Average Working Capital
CFO/Total debt
EBT/Revenue
CFO/average total assets

37. Cash to ROE
ROCE - ROA
Revenue/Average Total Assets
(CFO-preferred dividends)/weighted average number of common shares
CFO/average total equity

38. Original DuPont:ROE
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD of Sales/Mean Sales
[NI/sales][Sales/Assets][Assets/Equity]

39. Day of inventory on hand
Total Debt/Total shareholders' equity
365/Inventory turnover
Cost-Salvage/useful Life
(CFO-preferred dividends)/weighted average number of common shares

40. Interest expense
(market rate at issue)*(balance sheet value of the liability at beg period)
ROCE - ROA
CFO/cash outflows from investing and financing
(NI-preferred dividends)/weighted average of common shares

41. Payable Turnover
Purchases/Average trade payable
Total Debt/Total shareholders' equity
(CFO-preferred dividends)/weighted average number of common shares
CFO/cash long-term debt repayment

42. CF per share
365/receivables turnover
Cost-Salvage/useful Life
NI/average total equity
(CFO-preferred dividends)/weighted average number of common shares

43. Operating return on assets
NI/average total equity
(CFO+interest paid+taxes paid )/interest paid
EBIT/total asset
Annual Sales/Average receivables

44. Dividend payment
CFO/dividends paid
Total Debt/Total Asset
Purchases/Average trade payable
Total debt/(Total debt+Total shareholders equity)

45. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
365/Inventory turnover
NI/average total equity
365/payable turnover ratio

46. Fixed assets turnover
STD NI/Mean NI
Revenue/Average Fixed Assets
STD of Sales/Mean Sales
CFO/cash paid for long term asset

47. Net Profit Margin
CFO/dividends paid
NI/Revenue
(CFO+interest paid+taxes paid )/interest paid
EBIT/Revenue

48. Basic EPS
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
STD NI/Mean NI
EBIT/Revenue
(NI-preferred dividends)/weighted average of common shares

49. Ending inventories
CA/CL
Total debt/(Total debt+Total shareholders equity)
CFO/average total assets
Begininng inventories+purchases-COGS

50. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(EBIT+lease payments)/(interest payments+lease payments)
Total debt/(Total debt+Total shareholders equity)
Revenue/Average Total Assets