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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. Quick Ratio
Revenue/Average Fixed Assets
Total Debt/Total shareholders' equity
STD NI/Mean NI
Cash+Marketable Securities+ Receivables)/Current Liabilities

2. FCFF
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
Revenue/Average Total Assets
EBIT/Revenue

3. Interest expense
365/receivables turnover
Taxes payable+Change in DTL - Change in DTA
Purchases/Average trade payable
(market rate at issue)*(balance sheet value of the liability at beg period)

4. Ending inventories
Begininng inventories+purchases-COGS
(Cash+Marketable Securities)/Current Liabilities
CFO/cash paid for long term asset
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

5. Day of inventory on hand
EBIT/Revenue
365/Inventory turnover
365/receivables turnover
STD of Sales/Mean Sales

6. Debt to Asset
(CFO-preferred dividends)/weighted average number of common shares
(Cash+Marketable Securities)/Current Liabilities
Total Debt/Total Asset
Annual Sales/Average receivables

7. Return on equity
(CFO+interest paid+taxes paid )/interest paid
(NI-preferred dividends)/weighted average of common shares
ROCE - ROA
NI/average total equity

8. Inventory turnover
NI/total capital
Cost-Salvage/useful Life
COGS/Average Inventory
ROCE - ROA

9. Cash to income
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/operating income
Total Debt/Total Asset
NI/Revenue

10. CV Operating Income
STD OI/mean OI
Average Total Asset/Average total equity
Annual Sales/Average receivables
EBIT/total asset

11. Leverage
(2/useful life)*(Cost-Depreciation)
ROCE - ROA
[NI/sales][Sales/Assets][Assets/Equity]
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

12. Total asset turnover
Cash+Marketable Securities+ Receivables)/Current Liabilities
(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)
Revenue/Average Total Assets
NI available to common/average common equity

13. Fixed assets turnover
CFO/average total equity
Revenue/Average Fixed Assets
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Cost-Salvage/useful Life

14. Return on total capital
Revenue/Average Total Assets
STD NI/Mean NI
NI/total capital
Taxes payable+Change in DTL - Change in DTA

15. CF to Revenue
CFO/Net Revenue
Total Debt/Total shareholders' equity
CFO-fixed capital investment+net borrowing
NI available to common/average common equity

16. Operating Profit Margin
EBIT/Revenue
Begininng inventories+purchases-COGS
365/receivables turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

17. Return on Asset
(Cash+Marketable Securities)/Current Liabilities
Cost-Salvage/useful Life
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/Net Revenue

18. Receivables Turnover
Taxes payable+Change in DTL - Change in DTA
(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)
CFO/operating income
Annual Sales/Average receivables

19. Gross Profit Margin
Gross Profit/Revenue
STD NI/Mean NI
CA/CL
(market rate at issue)*(balance sheet value of the liability at beg period)

20. Dividend payment
NI/Revenue
CFO/dividends paid
365/payable turnover ratio
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

21. Debt to equity

22. Return on common equity
Begininng inventories+purchases-COGS
CFO/dividends paid
365/payable turnover ratio
NI available to common/average common equity

23. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
EBIT/total asset
Gross Profit/Revenue
(EBIT+lease payments)/(interest payments+lease payments)

24. Straight Line depreciation
Cost-Salvage/useful Life
Revenue/Average Total Assets
CFO/Total debt
Cash+Marketable Securities+ Receivables)/Current Liabilities

25. Net Profit Margin
Cost-Salvage/useful Life
EBIT/Revenue
NI available to common/average common equity
NI/Revenue

26. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
EBT/Revenue
NI/average total equity
CFO/cash outflows from investing and financing

27. Original DuPont:ROE
Cost-Salvage/useful Life
(CFO+interest paid+taxes paid )/interest paid
[NI/sales][Sales/Assets][Assets/Equity]
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

28. Number of days of payable
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/cash long-term debt repayment
365/payable turnover ratio
CFO/cash outflows from investing and financing

29. CV sales
Cash+Marketable Securities+ Receivables)/Current Liabilities
STD of Sales/Mean Sales
EBIT/Revenue
(2/useful life)*(Cost-Depreciation)

30. DDB
STD NI/Mean NI
(2/useful life)*(Cost-Depreciation)
CFO/cash outflows from investing and financing
COGS/Average Inventory

31. Diluted EPS
STD OI/mean OI
CFO/cash outflows from investing and financing
Cost-Salvage/useful Life
(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)

32. CF per share
Total debt/(Total debt+Total shareholders equity)
(CFO-preferred dividends)/weighted average number of common shares
CFO/cash long-term debt repayment
NI available to common/average common equity

33. Cash to ROE
CFO/cash outflows from investing and financing
Revenue/Average Total Assets
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/average total equity

34. Pretax Income
Taxes payable+Change in DTL - Change in DTA
Cost-Salvage/useful Life
EBT/Revenue
CFO-fixed capital investment+net borrowing

35. Interest coverage
CFO/cash paid for long term asset
Revenue/Average Fixed Assets
365/payable turnover ratio
(CFO+interest paid+taxes paid )/interest paid

36. FCFE
EBIT/Revenue
CFO-fixed capital investment+net borrowing
NI/average total equity
CFO/average total equity

37. Debt payment
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(NI-preferred dividends)/weighted average of common shares
CFO/cash long-term debt repayment

38. Cash to ROA
CFO-fixed capital investment+net borrowing
CFO/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)
Begininng inventories+purchases-COGS

39. Current Ratio
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(NI-preferred dividends)/weighted average of common shares
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CA/CL

40. Reinvestment
CFO/cash outflows from investing and financing
(CFO-preferred dividends)/weighted average number of common shares
CFO/cash paid for long term asset
(NI-preferred dividends)/weighted average of common shares

41. Fixed charged coverage
CFO/cash paid for long term asset
(Cash+Marketable Securities)/Current Liabilities
CFO/dividends paid
(EBIT+lease payments)/(interest payments+lease payments)

42. Cash Ratio
Cost-Salvage/useful Life
(Cash+Marketable Securities)/Current Liabilities
(2/useful life)*(Cost-Depreciation)
Total Debt/Total shareholders' equity

43. Financial Leverage
CFO/cash paid for long term asset
CFO/cash long-term debt repayment
Average Total Asset/Average total equity
Cash+Marketable Securities+ Receivables)/Current Liabilities

44. Days of sales outstanding
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(EBIT+lease payments)/(interest payments+lease payments)
365/receivables turnover
CFO/cash paid for long term asset

45. Investing and financing
CFO/average total equity
Cost-Salvage/useful Life
CFO/cash outflows from investing and financing
CFO/cash paid for long term asset

46. Debt to capital
Total debt/(Total debt+Total shareholders equity)
EBIT/total asset
(market rate at issue)*(balance sheet value of the liability at beg period)
COGS/Average Inventory

47. CV NI
STD NI/Mean NI
Purchases/Average trade payable
NI/Revenue
Revenue/Average Fixed Assets

48. Basic EPS
Cash+Marketable Securities+ Receivables)/Current Liabilities
(NI-preferred dividends)/weighted average of common shares
STD OI/mean OI
Average Total Asset/Average total equity

49. Operating return on assets
EBIT/total asset
STD of Sales/Mean Sales
NI/total capital
CFO/cash long-term debt repayment

50. Debt coverage
Cash+Marketable Securities+ Receivables)/Current Liabilities
(EBIT+lease payments)/(interest payments+lease payments)
Total Debt/Total Asset
CFO/Total debt