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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. Units in production
CFO/average total assets
Cash+Marketable Securities+ Receivables)/Current Liabilities
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CA/CL

2. Day of inventory on hand
365/Inventory turnover
CFO/dividends paid
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
365/payable turnover ratio

3. Reinvestment
EBIT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
Revenue/Average Fixed Assets
CFO/cash paid for long term asset

4. Dividend payment
CFO/cash outflows from investing and financing
CFO/dividends paid
365/Inventory turnover
CFO/Total debt

5. Total asset turnover
(2/useful life)*(Cost-Depreciation)
CFO/cash paid for long term asset
Revenue/Average Total Assets
NI/total capital

6. Inventory turnover
CFO/average total assets
Begininng inventories+purchases-COGS
[(Orginal Cost-Salvage)/Life in output units] * output units in production
COGS/Average Inventory

7. FCFF
Taxes payable+Change in DTL - Change in DTA
(CFO+interest paid+taxes paid )/interest paid
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
STD NI/Mean NI

8. Debt to capital
EBT/Revenue
Total debt/(Total debt+Total shareholders equity)
CFO/operating income
CFO/dividends paid

9. Interest expense
NI/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/dividends paid

10. Gross Profit Margin
CFO/average total equity
Cost-Salvage/useful Life
Gross Profit/Revenue
EBIT/Revenue

11. CF to Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/operating income
Cost-Salvage/useful Life
CFO/Net Revenue

12. Cash to ROE
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/average total equity
Gross Profit/Revenue
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

13. Debt to equity

14. Pretax Income
Cost-Salvage/useful Life
NI/average total equity
EBT/Revenue
CA/CL

15. Debt to Asset
[NI/sales][Sales/Assets][Assets/Equity]
Total Debt/Total Asset
CFO/cash outflows from investing and financing
Annual Sales/Average receivables

16. Days of sales outstanding
(CFO+interest paid+taxes paid )/interest paid
CFO/cash paid for long term asset
CFO/cash long-term debt repayment
365/receivables turnover

17. Return on total capital
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
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
NI/total capital

18. CV NI
Begininng inventories+purchases-COGS
CFO/cash outflows from investing and financing
STD NI/Mean NI
(CFO+interest paid+taxes paid )/interest paid

19. Return on common equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/cash long-term debt repayment
NI available to common/average common equity
(EBIT+lease payments)/(interest payments+lease payments)

20. Receivables Turnover
Average Total Asset/Average total equity
EBIT/total asset
Annual Sales/Average receivables
Cost-Salvage/useful Life

21. Current Ratio
ROCE - ROA
EBIT/total asset
CA/CL
Purchases/Average trade payable

22. Cash to ROA
Taxes payable+Change in DTL - Change in DTA
CFO/average total assets
(CFO+interest paid+taxes paid )/interest paid
COGS/Average Inventory

23. Operating Profit Margin
Revenue/Average Working Capital
(NI-preferred dividends)/weighted average of common shares
EBIT/Revenue
365/Inventory turnover

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

25. Basic EPS
NI/average total equity
(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)
365/receivables turnover

26. Financial Leverage
(NI-preferred dividends)/weighted average of common shares
NI available to common/average common equity
Average Total Asset/Average total equity
NI/average total equity

27. Debt payment
[(Orginal Cost-Salvage)/Life in output units] * output units in production
EBIT/total asset
CFO/cash long-term debt repayment
Annual Sales/Average receivables

28. CF per share
EBIT/total asset
NI/total capital
(CFO-preferred dividends)/weighted average number of common shares
(CFO+interest paid+taxes paid )/interest paid

29. Fixed assets turnover
Revenue/Average Fixed Assets
NI/average total equity
(CFO-preferred dividends)/weighted average number 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)

30. CV sales
STD of Sales/Mean Sales
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(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)
ROCE - ROA

31. Leverage
NI/total capital
Total Debt/Total Asset
Total debt/(Total debt+Total shareholders equity)
ROCE - ROA

32. Diluted EPS
CFO/cash paid for long term asset
(CFO+interest paid+taxes paid )/interest paid
(2/useful life)*(Cost-Depreciation)
(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)

33. Operating return on assets
EBIT/total asset
CFO-fixed capital investment+net borrowing
CFO/cash long-term debt repayment
CFO/Total debt

34. Quick Ratio
Purchases/Average trade payable
Cash+Marketable Securities+ Receivables)/Current Liabilities
(CFO-preferred dividends)/weighted average number of common shares
Revenue/Average Working Capital

35. Cash Conversion Cycle
STD OI/mean OI
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/average total equity
365/payable turnover ratio

36. Fixed charged coverage
Annual Sales/Average receivables
NI/total capital
EBIT/total asset
(EBIT+lease payments)/(interest payments+lease payments)

37. Number of days of payable
Taxes payable+Change in DTL - Change in DTA
365/payable turnover ratio
Average Total Asset/Average total equity
CA/CL

38. CV Operating Income
STD OI/mean OI
CFO/Net Revenue
365/receivables turnover
NI/Revenue

39. DDB
Revenue/Average Total Assets
[NI/sales][Sales/Assets][Assets/Equity]
(2/useful life)*(Cost-Depreciation)
(CFO+interest paid+taxes paid )/interest paid

40. Payable Turnover
CFO-fixed capital investment+net borrowing
Purchases/Average trade payable
Taxes payable+Change in DTL - Change in DTA
(CFO+interest paid+taxes paid )/interest paid

41. Original DuPont:ROE
Taxes payable+Change in DTL - Change in DTA
[NI/sales][Sales/Assets][Assets/Equity]
CFO/average total assets
CFO/Total debt

42. Cash to income
COGS/Average Inventory
NI/Revenue
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/operating income

43. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
ROCE - ROA
NI/Revenue
Begininng inventories+purchases-COGS

44. Net Profit Margin
CFO/Total debt
(CFO+interest paid+taxes paid )/interest paid
NI/Revenue
Total debt/(Total debt+Total shareholders equity)

45. FCFE
Annual Sales/Average receivables
CFO/Total debt
CFO-fixed capital investment+net borrowing
STD OI/mean OI

46. Income tax expense
STD OI/mean OI
Taxes payable+Change in DTL - Change in DTA
EBT/Revenue
Revenue/Average Working Capital

47. Defensive interval
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
STD NI/Mean NI
CFO/Net Revenue
Annual Sales/Average receivables

48. Debt coverage
Taxes payable+Change in DTL - Change in DTA
CFO/dividends paid
(CFO-preferred dividends)/weighted average number of common shares
CFO/Total debt

49. Cash Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
Total debt/(Total debt+Total shareholders equity)
(Cash+Marketable Securities)/Current Liabilities
CFO-fixed capital investment+net borrowing

50. Straight Line depreciation
Cost-Salvage/useful Life
EBT/Revenue
Gross Profit/Revenue
STD NI/Mean NI