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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. Gross Profit Margin
CFO/cash paid for long term asset
Gross Profit/Revenue
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Working Capital

2. CV sales
Total debt/(Total debt+Total shareholders equity)
Begininng inventories+purchases-COGS
(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 of Sales/Mean Sales

3. Debt payment
CFO/Total debt
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/cash long-term debt repayment
EBIT/total asset

4. Working Capital Turnover
STD OI/mean OI
(CFO-preferred dividends)/weighted average number of common shares
CA/CL
Revenue/Average Working Capital

5. Inventory turnover
COGS/Average Inventory
Total debt/(Total debt+Total shareholders equity)
CFO/Net Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

6. Financial Leverage
Cost-Salvage/useful Life
Average Total Asset/Average total equity
NI/Revenue
Revenue/Average Working Capital

7. CF per share
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/operating income
[NI/sales][Sales/Assets][Assets/Equity]
(CFO-preferred dividends)/weighted average number of common shares

8. Cash to ROA
CFO/average total assets
(Cash+Marketable Securities)/Current Liabilities
STD NI/Mean NI
EBIT/Revenue

9. Fixed assets turnover
Revenue/Average Fixed Assets
Gross Profit/Revenue
365/receivables turnover
CFO/Net Revenue

10. Original DuPont:ROE
Annual Sales/Average receivables
CFO/cash long-term debt repayment
Gross Profit/Revenue
[NI/sales][Sales/Assets][Assets/Equity]

11. CV NI
STD NI/Mean NI
(NI-preferred dividends)/weighted average of common shares
Annual Sales/Average receivables
(Cash+Marketable Securities)/Current Liabilities

12. Number of days of payable
365/payable turnover ratio
365/receivables turnover
EBT/Revenue
[(Orginal Cost-Salvage)/Life in output units] * output units in production

13. Debt to capital
(EBIT+lease payments)/(interest payments+lease payments)
CFO/operating income
Total debt/(Total debt+Total shareholders equity)
CFO/average total assets

14. Return on common equity
EBIT/total asset
CFO/cash paid for long term asset
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI available to common/average common equity

15. Basic EPS
CA/CL
(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
(NI-preferred dividends)/weighted average of common shares

16. Investing and financing
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/cash outflows from investing and financing
STD of Sales/Mean Sales
Revenue/Average Total Assets

17. Leverage
Annual Sales/Average receivables
ROCE - ROA
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)

18. Defensive interval
365/Inventory turnover
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)/Average Daily Expenditures
NI/total capital

19. Operating return on 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)
EBIT/total asset
365/receivables turnover
Cost-Salvage/useful Life

20. Ending inventories
CFO/cash outflows from investing and financing
NI/average total equity
Begininng inventories+purchases-COGS
Cash+Marketable Securities+ Receivables)/Current Liabilities

21. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
CFO/cash long-term debt repayment
365/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

22. CF to Revenue
CFO/Net Revenue
CFO/average total assets
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI available to common/average common equity

23. FCFF
CFO-fixed capital investment+net borrowing
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 Working 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)

24. DDB
CFO/average total assets
CFO-fixed capital investment+net borrowing
(CFO+interest paid+taxes paid )/interest paid
(2/useful life)*(Cost-Depreciation)

25. Net Profit Margin
Total Debt/Total Asset
NI/Revenue
Average Total Asset/Average total equity
Cost-Salvage/useful Life

26. Cash Conversion Cycle
365/payable turnover ratio
Taxes payable+Change in DTL - Change in DTA
(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

27. Reinvestment
CFO/cash paid for long term asset
NI/Revenue
(CFO-preferred dividends)/weighted average number of common shares
STD OI/mean OI

28. FCFE
Total Debt/Total shareholders' equity
Annual Sales/Average receivables
CFO-fixed capital investment+net borrowing
EBT/Revenue

29. Debt to equity

30. Days of sales outstanding
365/receivables turnover
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/dividends paid
ROCE - ROA

31. Total asset turnover
(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)
Cash+Marketable Securities+ Receivables)/Current Liabilities
Revenue/Average Fixed Assets
Revenue/Average Total Assets

32. Debt to Asset
Total Debt/Total Asset
365/receivables turnover
(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

33. Return on equity
NI available to common/average common equity
NI/average total equity
CFO/Total debt
(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)

34. Cash to income
CFO/operating income
Revenue/Average Fixed Assets
CFO/Net Revenue
NI/total capital

35. Day of inventory on hand
365/Inventory turnover
Cash+Marketable Securities+ Receivables)/Current Liabilities
Purchases/Average trade payable
ROCE - ROA

36. Cash to ROE
Total debt/(Total debt+Total shareholders equity)
CFO/average total equity
ROCE - ROA
Revenue/Average Fixed Assets

37. Pretax Income
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)
COGS/Average Inventory
EBT/Revenue

38. Units in production
NI/average total equity
Total Debt/Total shareholders' equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Average Total Asset/Average total equity

39. Dividend payment
CFO/Net Revenue
CFO/dividends paid
CA/CL
CFO/cash long-term debt repayment

40. Quick Ratio
COGS/Average Inventory
Average Total Asset/Average total equity
Cash+Marketable Securities+ Receivables)/Current Liabilities
EBT/Revenue

41. Operating Profit Margin
Average Total Asset/Average total equity
365/payable turnover ratio
CFO-fixed capital investment+net borrowing
EBIT/Revenue

42. Fixed charged coverage
(EBIT+lease payments)/(interest payments+lease payments)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Cost-Salvage/useful Life
(NI-preferred dividends)/weighted average of common shares

43. 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)
EBIT/total asset
CA/CL
CFO/average total equity

44. Current Ratio
ROCE - ROA
EBIT/Revenue
NI/total capital
CA/CL

45. Payable Turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Purchases/Average trade payable
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Total debt/(Total debt+Total shareholders equity)

46. Interest coverage
(CFO+interest paid+taxes paid )/interest paid
(CFO-preferred dividends)/weighted average number of common shares
Total Debt/Total shareholders' equity
(2/useful life)*(Cost-Depreciation)

47. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CA/CL
NI/Revenue
CFO/average total assets

48. Debt coverage
STD NI/Mean NI
EBT/Revenue
CFO/Total debt
(NI-preferred dividends)/weighted average of common shares

49. CV Operating Income
NI/average total equity
CFO/cash outflows from investing and financing
STD OI/mean OI
NI available to common/average common equity

50. Interest expense
365/receivables turnover
CFO/Net Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment