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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. Receivables Turnover
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Average Total Asset/Average total equity
Annual Sales/Average receivables
(market rate at issue)*(balance sheet value of the liability at beg period)

2. Fixed charged coverage
CFO/Total debt
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
(EBIT+lease payments)/(interest payments+lease payments)

3. Quick Ratio
EBIT/total asset
Cash+Marketable Securities+ Receivables)/Current Liabilities
Gross Profit/Revenue
NI/Revenue

4. DDB
(2/useful life)*(Cost-Depreciation)
EBT/Revenue
STD OI/mean OI
CA/CL

5. Fixed assets turnover
EBT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
Revenue/Average Fixed Assets
NI/Revenue

6. Number of days of payable
365/payable turnover ratio
Annual Sales/Average receivables
STD of Sales/Mean Sales
Revenue/Average Working Capital

7. Cash Ratio
(market rate at issue)*(balance sheet value of the liability at beg period)
(Cash+Marketable Securities)/Current Liabilities
EBIT/total asset
Gross Profit/Revenue

8. Return on equity
STD of Sales/Mean Sales
NI/average total equity
Revenue/Average Working Capital
Average Total Asset/Average total equity

9. Day of inventory on hand
(2/useful life)*(Cost-Depreciation)
365/Inventory turnover
Total Debt/Total shareholders' equity
(market rate at issue)*(balance sheet value of the liability at beg period)

10. CF per share
Taxes payable+Change in DTL - Change in DTA
(CFO+interest paid+taxes paid )/interest paid
(CFO-preferred dividends)/weighted average number of common shares
EBIT/total asset

11. FCFF
NI/average total equity
Total Debt/Total shareholders' equity
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(NI-preferred dividends)/weighted average of common shares

12. Cash to ROA
Gross Profit/Revenue
Total debt/(Total debt+Total shareholders equity)
CFO/average total assets
(market rate at issue)*(balance sheet value of the liability at beg period)

13. Operating Profit Margin
Total Debt/Total Asset
CFO/Net Revenue
[NI/sales][Sales/Assets][Assets/Equity]
EBIT/Revenue

14. Gross Profit Margin
Gross Profit/Revenue
Average Total Asset/Average total equity
CFO/dividends paid
CFO/average total assets

15. Original DuPont:ROE
EBIT/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 available to common/average common equity
[NI/sales][Sales/Assets][Assets/Equity]

16. Reinvestment
ROCE - ROA
STD of Sales/Mean Sales
CFO/cash paid for long term asset
(NI-preferred dividends)/weighted average of common shares

17. Income tax expense
365/payable turnover ratio
Annual Sales/Average receivables
Taxes payable+Change in DTL - Change in DTA
EBIT/Revenue

18. Investing and financing
Revenue/Average Total Assets
[NI/sales][Sales/Assets][Assets/Equity]
CFO/cash outflows from investing and financing
CFO/cash paid for long term asset

19. Current Ratio
Total Debt/Total Asset
EBIT/Revenue
CFO/Net Revenue
CA/CL

20. Payable Turnover
CFO/cash long-term debt repayment
Purchases/Average trade payable
(CFO+interest paid+taxes paid )/interest paid
CFO/Net Revenue

21. Dividend payment
CFO/dividends paid
CFO/average total equity
NI/average total equity
STD OI/mean OI

22. Days of sales outstanding
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(CFO+interest paid+taxes paid )/interest paid
COGS/Average Inventory
365/receivables turnover

23. Return on Asset
Revenue/Average Total Assets
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO+interest paid+taxes paid )/interest paid
Total Debt/Total shareholders' equity

24. Pretax Income
CFO/operating income
NI/Revenue
(NI-preferred dividends)/weighted average of common shares
EBT/Revenue

25. Debt coverage
(EBIT+lease payments)/(interest payments+lease payments)
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
365/Inventory turnover
CFO/Total debt

26. CV sales
365/Inventory turnover
NI/average total equity
STD of Sales/Mean Sales
CFO/average total assets

27. Interest coverage
STD OI/mean OI
Cash+Marketable Securities+ Receivables)/Current Liabilities
(CFO+interest paid+taxes paid )/interest paid
CFO/cash paid for long term asset

28. Debt to equity

29. Working Capital Turnover
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/Net Revenue
Taxes payable+Change in DTL - Change in DTA
Revenue/Average Working Capital

30. Interest expense
Begininng inventories+purchases-COGS
(CFO-preferred dividends)/weighted average number of common shares
(market rate at issue)*(balance sheet value of the liability at beg period)
Cost-Salvage/useful Life

31. Leverage
CFO/cash long-term debt repayment
ROCE - ROA
(2/useful life)*(Cost-Depreciation)
[(Orginal Cost-Salvage)/Life in output units] * output units in production

32. CV NI
365/receivables turnover
STD of Sales/Mean Sales
CFO/dividends paid
STD NI/Mean NI

33. Net Profit Margin
NI/Revenue
STD OI/mean OI
365/Inventory turnover
Annual Sales/Average receivables

34. Debt to Asset
CFO-fixed capital investment+net borrowing
Total Debt/Total Asset
CFO/Total debt
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

35. Defensive interval
(CFO-preferred dividends)/weighted average number of common shares
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Gross Profit/Revenue

36. Cash to ROE
CFO/average total equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO-fixed capital investment+net borrowing
STD OI/mean OI

37. Units in production
CFO/average total equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
[NI/sales][Sales/Assets][Assets/Equity]
ROCE - ROA

38. Return on total capital
CFO/Net Revenue
NI/average total equity
Average Total Asset/Average total equity
NI/total capital

39. Total asset turnover
Revenue/Average Total Assets
(NI-preferred dividends)/weighted average of common shares
(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

40. Return on common equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI available to common/average common equity
Revenue/Average Fixed Assets

41. Ending inventories
Revenue/Average Fixed Assets
Begininng inventories+purchases-COGS
Total Debt/Total shareholders' equity
CFO/operating income

42. FCFE
CFO/cash long-term debt repayment
[NI/sales][Sales/Assets][Assets/Equity]
(2/useful life)*(Cost-Depreciation)
CFO-fixed capital investment+net borrowing

43. CF to Revenue
Total debt/(Total debt+Total shareholders equity)
CFO/Net Revenue
(Cash+Marketable Securities)/Current Liabilities
ROCE - ROA

44. Operating return on assets
EBIT/total asset
NI/total capital
CFO/cash paid for long term asset
Cost-Salvage/useful Life

45. Financial Leverage
Revenue/Average Working Capital
EBIT/total asset
Average Total Asset/Average total equity
Purchases/Average trade payable

46. CV Operating Income
(NI-preferred dividends)/weighted average of common shares
EBIT/total asset
STD OI/mean OI
Taxes payable+Change in DTL - Change in DTA

47. Debt payment
[NI/sales][Sales/Assets][Assets/Equity]
Annual Sales/Average receivables
(CFO+interest paid+taxes paid )/interest paid
CFO/cash long-term debt repayment

48. Debt to capital
Total debt/(Total debt+Total shareholders equity)
CFO/average total equity
CFO-fixed capital investment+net borrowing
NI/Revenue

49. 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 shareholders' equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(EBIT+lease payments)/(interest payments+lease payments)

50. Cash to income
Purchases/Average trade payable
CFO/operating income
Revenue/Average Working Capital
(2/useful life)*(Cost-Depreciation)