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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
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Total Debt/Total shareholders' equity
[NI/sales][Sales/Assets][Assets/Equity]
(EBIT+lease payments)/(interest payments+lease payments)

2. Return on common equity
(EBIT+lease payments)/(interest payments+lease payments)
NI available to common/average common equity
Revenue/Average Working Capital
CFO-fixed capital investment+net borrowing

3. Debt payment
CFO/cash long-term debt repayment
EBT/Revenue
Purchases/Average trade payable
STD NI/Mean NI

4. Operating return on assets
365/receivables turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
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

5. Operating Profit Margin
EBIT/Revenue
STD NI/Mean NI
STD OI/mean OI
CFO/average total equity

6. Diluted EPS
Gross Profit/Revenue
CA/CL
Revenue/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)

7. Cash to ROA
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
COGS/Average Inventory
CFO/average total assets
EBIT/Revenue

8. Current Ratio
CFO/operating income
CA/CL
Annual Sales/Average receivables
STD OI/mean OI

9. CF per share
(CFO-preferred dividends)/weighted average number of common shares
(NI-preferred dividends)/weighted average of common shares
CFO/Net Revenue
(EBIT+lease payments)/(interest payments+lease payments)

10. CV NI
NI available to common/average common equity
STD NI/Mean NI
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/average total equity

11. Pretax Income
EBT/Revenue
Gross Profit/Revenue
ROCE - ROA
365/receivables turnover

12. Days of sales outstanding
NI/Revenue
365/receivables turnover
(2/useful life)*(Cost-Depreciation)
CFO/dividends paid

13. Debt coverage
CFO/Total debt
(2/useful life)*(Cost-Depreciation)
CA/CL
NI/total capital

14. Cash to income
CFO/operating income
EBIT/total asset
COGS/Average Inventory
CFO/cash long-term debt repayment

15. FCFE
(market rate at issue)*(balance sheet value of the liability at beg period)
Total debt/(Total debt+Total shareholders equity)
CFO-fixed capital investment+net borrowing
365/Inventory turnover

16. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
EBIT/Revenue
Cash+Marketable Securities+ Receivables)/Current Liabilities
Revenue/Average Total Assets

17. Interest expense
Revenue/Average Total Assets
(market rate at issue)*(balance sheet value of the liability at beg period)
365/payable turnover ratio
Revenue/Average Fixed Assets

18. Ending inventories
[NI/sales][Sales/Assets][Assets/Equity]
NI/average total equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Begininng inventories+purchases-COGS

19. Day of inventory on hand
Cost-Salvage/useful Life
EBIT/Revenue
365/Inventory turnover
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

20. Quick Ratio
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/cash long-term debt repayment
Cash+Marketable Securities+ Receivables)/Current Liabilities
EBT/Revenue

21. Fixed assets turnover
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Total debt
Revenue/Average Fixed Assets
Revenue/Average Total Assets

22. Leverage
(EBIT+lease payments)/(interest payments+lease payments)
Gross Profit/Revenue
ROCE - ROA
[(Orginal Cost-Salvage)/Life in output units] * output units in production

23. Interest coverage
EBIT/Revenue
CA/CL
[NI/sales][Sales/Assets][Assets/Equity]
(CFO+interest paid+taxes paid )/interest paid

24. 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
Revenue/Average Total Assets
Annual Sales/Average receivables
STD of Sales/Mean Sales

25. Working Capital Turnover
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Revenue/Average Working Capital
ROCE - ROA
Purchases/Average trade payable

26. Investing and financing
Begininng inventories+purchases-COGS
Total Debt/Total Asset
CFO/cash outflows from investing and financing
(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)

27. Reinvestment
CFO/cash paid for long term asset
NI/total capital
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/dividends paid

28. FCFF
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
365/receivables turnover
CFO/operating income
EBIT/Revenue

29. Debt to equity

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30. CV 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)
STD OI/mean OI
Revenue/Average Total Assets
Cost-Salvage/useful Life

31. Financial Leverage
CFO/cash paid for long term asset
Average Total Asset/Average total equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
[(Orginal Cost-Salvage)/Life in output units] * output units in production

32. Original DuPont:ROE
Taxes payable+Change in DTL - Change in DTA
[NI/sales][Sales/Assets][Assets/Equity]
(NI-preferred dividends)/weighted average of common shares
Revenue/Average Working Capital

33. Income tax expense
Cost-Salvage/useful Life
CFO/cash long-term debt repayment
Taxes payable+Change in DTL - Change in DTA
(2/useful life)*(Cost-Depreciation)

34. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
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 Asset
CFO/cash long-term debt repayment

35. Return on Asset
CFO/average total assets
NI/total capital
CFO/Total debt
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

36. Inventory turnover
Total Debt/Total Asset
COGS/Average Inventory
Total debt/(Total debt+Total shareholders equity)
(2/useful life)*(Cost-Depreciation)

37. CF to Revenue
CFO/Net Revenue
(EBIT+lease payments)/(interest payments+lease payments)
NI/Revenue
STD OI/mean OI

38. Net Profit Margin
Total Debt/Total shareholders' equity
Purchases/Average trade payable
(Cash+Marketable Securities)/Current Liabilities
NI/Revenue

39. Straight Line depreciation
Begininng inventories+purchases-COGS
Cost-Salvage/useful Life
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(CFO-preferred dividends)/weighted average number of common shares

40. Payable Turnover
(2/useful life)*(Cost-Depreciation)
Annual Sales/Average receivables
Purchases/Average trade payable
CFO/average total equity

41. Total asset turnover
CFO/dividends paid
CFO/cash long-term debt repayment
COGS/Average Inventory
Revenue/Average Total Assets

42. Gross Profit Margin
EBT/Revenue
365/receivables turnover
[NI/sales][Sales/Assets][Assets/Equity]
Gross Profit/Revenue

43. CV sales
Total debt/(Total debt+Total shareholders equity)
STD of Sales/Mean Sales
COGS/Average Inventory
CFO/operating income

44. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
365/receivables turnover
CFO/average total equity
Revenue/Average Fixed Assets

45. DDB
EBT/Revenue
Total debt/(Total debt+Total shareholders equity)
CFO/operating income
(2/useful life)*(Cost-Depreciation)

46. Number of days of payable
CA/CL
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/cash long-term debt repayment
365/payable turnover ratio

47. Debt to Asset
Total Debt/Total Asset
Total Debt/Total shareholders' equity
(2/useful life)*(Cost-Depreciation)
(market rate at issue)*(balance sheet value of the liability at beg period)

48. Return on total capital
Total debt/(Total debt+Total shareholders equity)
Annual Sales/Average receivables
NI/total capital
365/receivables turnover

49. Debt to capital
(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)
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

50. Return on equity
STD OI/mean OI
EBIT/total asset
NI/average total equity
Purchases/Average trade payable