Test your basic knowledge |

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. Inventory turnover
STD NI/Mean NI
NI/total capital
COGS/Average Inventory
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

2. Number of days of payable
365/receivables turnover
STD of Sales/Mean Sales
NI/total capital
365/payable turnover ratio

3. Cash to income
STD NI/Mean NI
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/operating income
365/Inventory turnover

4. Debt to 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)
365/payable turnover ratio
Total Debt/Total Asset
STD OI/mean OI

5. Interest coverage
(CFO+interest paid+taxes paid )/interest paid
ROCE - ROA
(EBIT+lease payments)/(interest payments+lease payments)
NI/Revenue

6. DDB
Average Total Asset/Average total equity
(2/useful life)*(Cost-Depreciation)
365/receivables turnover
CFO/dividends paid

7. Current Ratio
(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+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Cash+Marketable Securities+ Receivables)/Current Liabilities
CA/CL

8. Total asset turnover
Total debt/(Total debt+Total shareholders equity)
CFO/Net Revenue
CFO/average total equity
Revenue/Average Total Assets

9. Debt coverage
CFO/Total debt
365/payable turnover ratio
STD of Sales/Mean Sales
365/Inventory turnover

10. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/dividends paid
ROCE - ROA
CFO/average total equity

11. Dividend payment
(Cash+Marketable Securities)/Current Liabilities
CFO/dividends paid
CFO/operating income
EBT/Revenue

12. Debt to capital
Total debt/(Total debt+Total shareholders equity)
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(market rate at issue)*(balance sheet value of the liability at beg period)
Total Debt/Total Asset

13. Leverage
Revenue/Average Fixed Assets
CFO/operating income
ROCE - ROA
Total debt/(Total debt+Total shareholders equity)

14. CF per share
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Annual Sales/Average receivables
(CFO-preferred dividends)/weighted average number of common shares
Purchases/Average trade payable

15. CV sales
STD OI/mean OI
STD of Sales/Mean Sales
Average Total Asset/Average total equity
(CFO-preferred dividends)/weighted average number of common shares

16. Return on total capital
NI/average total equity
NI/total capital
Total debt/(Total debt+Total shareholders equity)
Purchases/Average trade payable

17. Cash to ROE
EBIT/Revenue
Revenue/Average Working Capital
CFO/average total equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

18. Payable Turnover
Taxes payable+Change in DTL - Change in DTA
EBT/Revenue
Purchases/Average trade payable
STD of Sales/Mean Sales

19. Return on common equity
NI available to common/average common equity
(market rate at issue)*(balance sheet value of the liability at beg period)
NI/average total equity
CFO/average total equity

20. Straight Line depreciation
Total Debt/Total Asset
(NI-preferred dividends)/weighted average of common shares
(Cash+Marketable Securities)/Current Liabilities
Cost-Salvage/useful Life

21. Debt to equity

22. Debt payment
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/cash long-term debt repayment
CFO/average total assets
Taxes payable+Change in DTL - Change in DTA

23. Days of sales outstanding
STD OI/mean OI
CFO/cash paid for long term asset
365/receivables turnover
EBT/Revenue

24. Units in production
365/payable turnover ratio
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
STD of Sales/Mean Sales

25. Return on equity
NI/average total equity
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Purchases/Average trade payable
(CFO-preferred dividends)/weighted average number of common shares

26. Pretax Income
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/total asset
Revenue/Average Total Assets

27. 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)
Gross Profit/Revenue
CFO-fixed capital investment+net borrowing
EBIT/total asset

28. Operating Profit Margin
(CFO+interest paid+taxes paid )/interest paid
CFO/operating income
EBIT/Revenue
COGS/Average Inventory

29. Defensive interval
CFO/average total equity
COGS/Average Inventory
Average Total Asset/Average total equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

30. Cash Conversion Cycle
CFO/cash paid for long term asset
Revenue/Average Fixed Assets
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/dividends paid

31. FCFF
EBIT/Revenue
Annual Sales/Average receivables
(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

32. Ending inventories
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Fixed Assets
CFO/average total assets
Begininng inventories+purchases-COGS

33. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
Average Total Asset/Average total equity
Total Debt/Total Asset
ROCE - ROA

34. Gross Profit Margin
Annual Sales/Average receivables
Gross Profit/Revenue
CFO/dividends paid
(market rate at issue)*(balance sheet value of the liability at beg period)

35. Financial Leverage
EBIT/total asset
Average Total Asset/Average total equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Cost-Salvage/useful Life

36. Fixed assets turnover
Revenue/Average Fixed Assets
Revenue/Average Total Assets
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Total Debt/Total Asset

37. Interest expense
CFO/operating income
EBT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/cash long-term debt repayment

38. Basic EPS
Annual Sales/Average receivables
(NI-preferred dividends)/weighted average of common shares
(Cash+Marketable Securities)/Current Liabilities
(EBIT+lease payments)/(interest payments+lease payments)

39. Receivables Turnover
EBIT/total asset
365/receivables turnover
Annual Sales/Average receivables
(EBIT+lease payments)/(interest payments+lease payments)

40. FCFE
CFO-fixed capital investment+net borrowing
CFO/cash long-term debt repayment
Revenue/Average Working Capital
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

41. Income tax expense
Average Total Asset/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)
Taxes payable+Change in DTL - Change in DTA
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

42. Working Capital Turnover
Revenue/Average Working Capital
EBT/Revenue
CFO/operating income
STD of Sales/Mean Sales

43. Cash to ROA
CFO/average total assets
CFO/dividends paid
NI/average total equity
Revenue/Average Total Assets

44. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/average total assets
Purchases/Average trade payable
Revenue/Average Total Assets

45. Day of inventory on hand
365/Inventory turnover
CFO/cash outflows from investing and financing
NI available to common/average common equity
[NI/sales][Sales/Assets][Assets/Equity]

46. CV NI
Revenue/Average Fixed Assets
Cost-Salvage/useful Life
CFO/cash outflows from investing and financing
STD NI/Mean NI

47. Net Profit Margin
(Cash+Marketable Securities)/Current Liabilities
365/Inventory turnover
NI/Revenue
365/receivables turnover

48. CV Operating Income
STD OI/mean OI
STD of Sales/Mean Sales
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/average total assets

49. Reinvestment
(CFO-preferred dividends)/weighted average number of common shares
CFO/cash paid for long term asset
Total Debt/Total Asset
CFO/operating income

50. Fixed charged coverage
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
EBT/Revenue
STD NI/Mean NI
(EBIT+lease payments)/(interest payments+lease payments)