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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. Cash to income
ROCE - ROA
CFO/operating income
EBIT/Revenue
CFO-fixed capital investment+net borrowing

2. Fixed assets turnover
CFO/cash paid for long term asset
Revenue/Average Fixed Assets
Average Total Asset/Average total equity
365/payable turnover ratio

3. Quick Ratio
365/receivables turnover
Revenue/Average Fixed Assets
Average Total Asset/Average total equity
Cash+Marketable Securities+ Receivables)/Current Liabilities

4. Straight Line depreciation
Taxes payable+Change in DTL - Change in DTA
Cost-Salvage/useful Life
CFO/cash paid for long term asset
STD of Sales/Mean Sales

5. Current Ratio
ROCE - ROA
EBIT/total asset
CA/CL
365/payable turnover ratio

6. Gross Profit Margin
(CFO-preferred dividends)/weighted average number of common shares
Gross Profit/Revenue
Taxes payable+Change in DTL - Change in DTA
Purchases/Average trade payable

7. Original DuPont:ROE
[NI/sales][Sales/Assets][Assets/Equity]
(NI-preferred dividends)/weighted average of common shares
CFO/average total assets
ROCE - ROA

8. CV NI
(NI-preferred dividends)/weighted average of common shares
365/payable turnover ratio
STD NI/Mean NI
Begininng inventories+purchases-COGS

9. Days of sales outstanding
365/receivables turnover
STD OI/mean OI
(NI-preferred dividends)/weighted average of common shares
Purchases/Average trade payable

10. Inventory turnover
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(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)
COGS/Average Inventory
CFO/Net Revenue

11. Return on total capital
Average Total Asset/Average total equity
STD OI/mean OI
NI/total capital
365/Inventory turnover

12. Pretax Income
NI available to common/average common equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
EBT/Revenue
STD OI/mean OI

13. Interest expense
Gross Profit/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/operating income
CFO/Total debt

14. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
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
Taxes payable+Change in DTL - Change in DTA

15. Operating return on assets
EBIT/total asset
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Net Revenue
CFO/average total equity

16. Debt to equity

17. Operating Profit Margin
STD of Sales/Mean Sales
EBIT/Revenue
CFO/average total assets
CFO/dividends paid

18. Defensive interval
CFO/cash paid for long term asset
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
NI/total capital
COGS/Average Inventory

19. Diluted EPS
CFO/average total assets
(Cash+Marketable Securities)/Current Liabilities
(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)
Taxes payable+Change in DTL - Change in DTA

20. Cash to ROE
CFO/average total equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/dividends paid
EBT/Revenue

21. Return on common equity
NI available to common/average common equity
CFO/Net Revenue
(2/useful life)*(Cost-Depreciation)
Total debt/(Total debt+Total shareholders equity)

22. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Begininng inventories+purchases-COGS
CFO/operating income
Gross Profit/Revenue

23. Return on equity
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/average total equity
(CFO+interest paid+taxes paid )/interest paid
NI/average total equity

24. Investing and financing
CFO/cash outflows from investing and financing
Annual Sales/Average receivables
Purchases/Average trade payable
COGS/Average Inventory

25. Total asset turnover
Taxes payable+Change in DTL - Change in DTA
Revenue/Average Total Assets
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)

26. Interest coverage
Total Debt/Total shareholders' equity
Gross Profit/Revenue
(CFO+interest paid+taxes paid )/interest paid
365/payable turnover ratio

27. CV Operating Income
STD OI/mean OI
(NI-preferred dividends)/weighted average of common shares
COGS/Average Inventory
CA/CL

28. Debt coverage
CFO/Total debt
STD of Sales/Mean Sales
STD NI/Mean NI
CFO/cash paid for long term asset

29. Ending inventories
Begininng inventories+purchases-COGS
365/payable turnover ratio
(EBIT+lease payments)/(interest payments+lease payments)
EBIT/Revenue

30. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/total capital
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/average total equity

31. Income tax expense
365/receivables turnover
Taxes payable+Change in DTL - Change in DTA
CA/CL
(EBIT+lease payments)/(interest payments+lease payments)

32. Fixed charged coverage
(2/useful life)*(Cost-Depreciation)
Cost-Salvage/useful Life
(EBIT+lease payments)/(interest payments+lease payments)
EBT/Revenue

33. CF per share
Taxes payable+Change in DTL - Change in DTA
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(CFO-preferred dividends)/weighted average number of common shares
(2/useful life)*(Cost-Depreciation)

34. Day of inventory on hand
Revenue/Average Working Capital
Begininng inventories+purchases-COGS
(CFO+interest paid+taxes paid )/interest paid
365/Inventory turnover

35. FCFE
CFO-fixed capital investment+net borrowing
Begininng inventories+purchases-COGS
CFO/dividends paid
CFO/Total debt

36. Cash to ROA
CFO/average total assets
Total debt/(Total debt+Total shareholders equity)
(CFO-preferred dividends)/weighted average number of common shares
(CFO+interest paid+taxes paid )/interest paid

37. CF to Revenue
Annual Sales/Average receivables
CA/CL
NI/average total equity
CFO/Net Revenue

38. CV sales
365/payable turnover ratio
COGS/Average Inventory
NI available to common/average common equity
STD of Sales/Mean Sales

39. DDB
NI/total capital
Taxes payable+Change in DTL - Change in DTA
(2/useful life)*(Cost-Depreciation)
CFO/average total equity

40. Number of days of payable
365/payable turnover ratio
NI available to common/average common equity
(NI-preferred dividends)/weighted average of common shares
Cost-Salvage/useful Life

41. Debt to capital
(NI-preferred dividends)/weighted average of common shares
CFO/cash paid for long term asset
Total debt/(Total debt+Total shareholders equity)
STD of Sales/Mean Sales

42. Payable Turnover
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Purchases/Average trade payable
(CFO+interest paid+taxes paid )/interest paid
STD OI/mean OI

43. Basic EPS
Annual Sales/Average receivables
(NI-preferred dividends)/weighted average of common shares
Cash+Marketable Securities+ Receivables)/Current Liabilities
Total debt/(Total debt+Total shareholders equity)

44. FCFF
(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)
Revenue/Average Working Capital
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Total Debt/Total shareholders' equity

45. Dividend payment
CFO/dividends paid
Total Debt/Total shareholders' equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
365/Inventory turnover

46. Debt to Asset
Total Debt/Total Asset
CFO/cash outflows from investing and financing
COGS/Average Inventory
(NI-preferred dividends)/weighted average of common shares

47. Financial Leverage
Cash+Marketable Securities+ Receivables)/Current Liabilities
NI available to common/average common equity
CFO/cash paid for long term asset
Average Total Asset/Average total equity

48. Net Profit Margin
NI/Revenue
CFO/operating income
EBIT/Revenue
(CFO+interest paid+taxes paid )/interest paid

49. Leverage
(Cash+Marketable Securities)/Current Liabilities
NI/average total equity
(EBIT+lease payments)/(interest payments+lease payments)
ROCE - ROA

50. Working Capital Turnover
Revenue/Average Working Capital
EBT/Revenue
Purchases/Average trade payable
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)