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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. Fixed assets turnover
STD OI/mean OI
COGS/Average Inventory
(CFO-preferred dividends)/weighted average number of common shares
Revenue/Average Fixed Assets

2. Interest coverage
(2/useful life)*(Cost-Depreciation)
(CFO+interest paid+taxes paid )/interest paid
NI/average total equity
CFO/cash long-term debt repayment

3. Cash to income
(CFO-preferred dividends)/weighted average number of common shares
CFO/dividends paid
CFO/operating income
(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)

4. Return on common equity
NI available to common/average common equity
STD OI/mean OI
CA/CL
ROCE - ROA

5. Leverage
STD NI/Mean NI
EBT/Revenue
ROCE - ROA
NI/Revenue

6. Defensive interval
STD OI/mean OI
(2/useful life)*(Cost-Depreciation)
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/dividends paid

7. Net Profit Margin
ROCE - ROA
NI/Revenue
(CFO-preferred dividends)/weighted average number of common shares
(Cash+Marketable Securities)/Current Liabilities

8. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
ROCE - ROA
NI/Revenue
(NI-preferred dividends)/weighted average of common shares

9. Debt to capital
(CFO-preferred dividends)/weighted average number of common shares
STD of Sales/Mean Sales
NI/Revenue
Total debt/(Total debt+Total shareholders equity)

10. CF to Revenue
(2/useful life)*(Cost-Depreciation)
CFO/Net Revenue
CFO/average total assets
Total Debt/Total shareholders' equity

11. Basic EPS
NI/average total equity
(CFO-preferred dividends)/weighted average number of common shares
(NI-preferred dividends)/weighted average of common shares
STD OI/mean OI

12. Number of days of payable
365/payable turnover ratio
STD of Sales/Mean Sales
365/receivables turnover
(EBIT+lease payments)/(interest payments+lease payments)

13. Receivables Turnover
Revenue/Average Total Assets
Revenue/Average Working Capital
CFO/average total assets
Annual Sales/Average receivables

14. Units in production
Annual Sales/Average receivables
[(Orginal Cost-Salvage)/Life in output units] * output units in production
ROCE - ROA
EBIT/total asset

15. DDB
ROCE - ROA
Cash+Marketable Securities+ Receivables)/Current Liabilities
(2/useful life)*(Cost-Depreciation)
365/payable turnover ratio

16. Debt payment
Total debt/(Total debt+Total shareholders equity)
Revenue/Average Fixed Assets
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/cash long-term debt repayment

17. Income tax expense
EBT/Revenue
EBIT/Revenue
Taxes payable+Change in DTL - Change in DTA
EBIT/total asset

18. Debt to equity

19. Return on Asset
CFO/cash paid for long term asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Revenue/Average Fixed Assets
EBIT/total asset

20. Inventory turnover
Average Total Asset/Average total equity
EBIT/Revenue
(NI-preferred dividends)/weighted average of common shares
COGS/Average Inventory

21. FCFF
Total Debt/Total 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
STD of Sales/Mean Sales

22. Days of sales outstanding
(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)
Begininng inventories+purchases-COGS
365/receivables turnover
EBIT/Revenue

23. Operating Profit Margin
EBIT/Revenue
(EBIT+lease payments)/(interest payments+lease payments)
(CFO+interest paid+taxes paid )/interest paid
CFO/cash long-term debt repayment

24. Cash to ROA
Cost-Salvage/useful Life
[NI/sales][Sales/Assets][Assets/Equity]
CFO/average total assets
Cash+Marketable Securities+ Receivables)/Current Liabilities

25. Quick Ratio
(CFO-preferred dividends)/weighted average number of common shares
Cash+Marketable Securities+ Receivables)/Current Liabilities
NI/Revenue
EBIT/Revenue

26. Return on total capital
NI/total capital
CFO/cash paid for long term asset
CA/CL
EBIT/Revenue

27. Cash to ROE
Total Debt/Total Asset
(EBIT+lease payments)/(interest payments+lease payments)
NI/total capital
CFO/average total equity

28. Cash Ratio
[NI/sales][Sales/Assets][Assets/Equity]
(Cash+Marketable Securities)/Current Liabilities
STD OI/mean OI
Purchases/Average trade payable

29. 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)
Total debt/(Total debt+Total shareholders equity)
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/cash outflows from investing and financing

30. Operating return on assets
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
EBIT/total asset
Cost-Salvage/useful Life
CFO/average total equity

31. Reinvestment
(Cash+Marketable Securities)/Current Liabilities
CFO/cash paid for long term asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total Debt/Total shareholders' equity

32. Total asset turnover
CFO/Net Revenue
Revenue/Average Total Assets
ROCE - ROA
Average Total Asset/Average total equity

33. Ending inventories
ROCE - ROA
EBIT/total asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Begininng inventories+purchases-COGS

34. Day of inventory on hand
[NI/sales][Sales/Assets][Assets/Equity]
[(Orginal Cost-Salvage)/Life in output units] * output units in production
365/Inventory turnover
STD of Sales/Mean Sales

35. FCFE
CFO/dividends paid
CFO/cash outflows from investing and financing
CFO-fixed capital investment+net borrowing
Gross Profit/Revenue

36. Working Capital Turnover
Revenue/Average Working Capital
NI/Revenue
NI/average total equity
Cost-Salvage/useful Life

37. Debt coverage
CFO/Total debt
ROCE - ROA
EBIT/total asset
(CFO-preferred dividends)/weighted average number of common shares

38. Fixed charged coverage
Cost-Salvage/useful Life
EBT/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)
(EBIT+lease payments)/(interest payments+lease payments)

39. Financial Leverage
[NI/sales][Sales/Assets][Assets/Equity]
EBT/Revenue
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity

40. Return on equity
NI available to common/average common equity
Total Debt/Total shareholders' equity
NI/average total equity
CFO/cash long-term debt repayment

41. CV Operating Income
CFO/cash paid for long term asset
(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/average total assets
STD OI/mean OI

42. Pretax Income
NI/Revenue
(2/useful life)*(Cost-Depreciation)
CFO-fixed capital investment+net borrowing
EBT/Revenue

43. 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)
NI available to common/average common equity
365/Inventory turnover

44. Gross Profit Margin
Gross Profit/Revenue
ROCE - ROA
CFO/average total assets
EBIT/total asset

45. Payable Turnover
365/payable turnover ratio
365/Inventory turnover
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Purchases/Average trade payable

46. Original DuPont:ROE
[NI/sales][Sales/Assets][Assets/Equity]
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO+interest paid+taxes paid )/interest paid
EBIT/total asset

47. Interest expense
(EBIT+lease payments)/(interest payments+lease payments)
(market rate at issue)*(balance sheet value of the liability at beg period)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
EBT/Revenue

48. Debt to Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total Debt/Total Asset
CFO/cash outflows from investing and financing
Begininng inventories+purchases-COGS

49. CV sales
STD of Sales/Mean Sales
[NI/sales][Sales/Assets][Assets/Equity]
CFO/Total debt
Revenue/Average Total Assets

50. Current Ratio
NI/Revenue
CA/CL
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/operating income