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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
Cash+Marketable Securities+ Receivables)/Current Liabilities
Total debt/(Total debt+Total shareholders equity)
Taxes payable+Change in DTL - Change in DTA
NI available to common/average common equity

2. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
EBT/Revenue
Total Debt/Total shareholders' equity
Purchases/Average trade payable

3. Operating Profit Margin
(EBIT+lease payments)/(interest payments+lease payments)
EBIT/Revenue
Cost-Salvage/useful Life
365/receivables turnover

4. Inventory turnover
CFO/cash paid for long term asset
COGS/Average Inventory
STD OI/mean OI
Revenue/Average Total Assets

5. Leverage
ROCE - ROA
(EBIT+lease payments)/(interest payments+lease payments)
NI/total capital
Cash+Marketable Securities+ Receivables)/Current Liabilities

6. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
365/payable turnover ratio
Revenue/Average Fixed Assets
CFO/average total assets

7. Cash to ROE
CFO/average total equity
(CFO+interest paid+taxes paid )/interest paid
STD NI/Mean NI
CFO-fixed capital investment+net borrowing

8. Return on equity
Purchases/Average trade payable
365/Inventory turnover
NI/average total equity
STD NI/Mean NI

9. Number of days of payable
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
Purchases/Average trade payable
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

10. Financial Leverage
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity
COGS/Average Inventory
NI available to common/average common equity

11. Debt coverage
CFO/cash long-term debt repayment
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/Total debt
CFO/average total equity

12. Day of inventory on hand
CFO/cash paid for long term asset
CFO/Net Revenue
EBIT/total asset
365/Inventory turnover

13. Operating return on assets
STD NI/Mean NI
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
EBIT/total asset

14. FCFE
CFO-fixed capital investment+net borrowing
NI/Revenue
CFO/cash paid for long term asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

15. Receivables Turnover
Annual Sales/Average receivables
(2/useful life)*(Cost-Depreciation)
[NI/sales][Sales/Assets][Assets/Equity]
365/payable turnover ratio

16. 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 Working Capital
Total Debt/Total Asset

17. Basic EPS
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(NI-preferred dividends)/weighted average of common shares
STD OI/mean OI
NI/total capital

18. Days of sales outstanding
Average Total Asset/Average total equity
NI/total capital
365/receivables turnover
NI/Revenue

19. Fixed charged coverage
(EBIT+lease payments)/(interest payments+lease payments)
CFO/Net Revenue
CFO-fixed capital investment+net borrowing
(CFO-preferred dividends)/weighted average number of common shares

20. Original DuPont:ROE
Cost-Salvage/useful Life
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
NI/Revenue
[NI/sales][Sales/Assets][Assets/Equity]

21. CV sales
STD of Sales/Mean Sales
CFO/operating income
Revenue/Average Fixed Assets
CFO/dividends paid

22. Interest coverage
Taxes payable+Change in DTL - Change in DTA
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(CFO+interest paid+taxes paid )/interest paid
365/Inventory turnover

23. Straight Line depreciation
CFO/cash outflows from investing and financing
EBIT/total asset
Cost-Salvage/useful Life
CFO/average total equity

24. CF per share
Total debt/(Total debt+Total shareholders equity)
Revenue/Average Fixed Assets
(CFO-preferred dividends)/weighted average number of common shares
[NI/sales][Sales/Assets][Assets/Equity]

25. 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 Asset
CFO/Total debt
365/receivables turnover

26. Interest expense
(market rate at issue)*(balance sheet value of the liability at beg period)
ROCE - ROA
Total Debt/Total shareholders' equity
CFO/operating income

27. Current Ratio
CA/CL
STD of Sales/Mean Sales
(EBIT+lease payments)/(interest payments+lease payments)
(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)

28. DDB
Purchases/Average trade payable
STD of Sales/Mean Sales
(2/useful life)*(Cost-Depreciation)
EBT/Revenue

29. Cash Conversion Cycle
Cost-Salvage/useful Life
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(2/useful life)*(Cost-Depreciation)

30. Working Capital Turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Revenue/Average Working Capital
EBIT/total asset
(market rate at issue)*(balance sheet value of the liability at beg period)

31. Cash Ratio
NI available to common/average common equity
CFO/Total debt
(Cash+Marketable Securities)/Current Liabilities
Purchases/Average trade payable

32. Gross Profit Margin
EBIT/total asset
Gross Profit/Revenue
365/receivables turnover
CFO/Total debt

33. Investing and financing
CFO/cash outflows from investing and financing
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
STD of Sales/Mean Sales
NI available to common/average common equity

34. Net Profit Margin
Cash+Marketable Securities+ Receivables)/Current Liabilities
NI/Revenue
Revenue/Average Total Assets
Gross Profit/Revenue

35. Cash to ROA
Revenue/Average Working Capital
CFO/average total assets
NI/total capital
Begininng inventories+purchases-COGS

36. CF to Revenue
CFO/cash outflows from investing and financing
CFO/cash paid for long term asset
CFO/Net Revenue
(CFO-preferred dividends)/weighted average number of common shares

37. Defensive interval
STD OI/mean OI
Total Debt/Total shareholders' equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
EBIT/total asset

38. CV Operating Income
NI available to common/average common equity
Begininng inventories+purchases-COGS
STD OI/mean OI
STD of Sales/Mean Sales

39. Pretax Income
CA/CL
EBT/Revenue
ROCE - ROA
(EBIT+lease payments)/(interest payments+lease payments)

40. Total asset turnover
COGS/Average Inventory
NI/average total equity
CFO/Total debt
Revenue/Average Total Assets

41. Ending inventories
Begininng inventories+purchases-COGS
Revenue/Average Fixed Assets
Total debt/(Total debt+Total shareholders equity)
(NI-preferred dividends)/weighted average of common shares

42. Reinvestment
NI available to common/average common 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)
CFO/cash paid for long term asset
Total Debt/Total shareholders' equity

43. Fixed assets turnover
Revenue/Average Fixed Assets
Cash+Marketable Securities+ Receivables)/Current Liabilities
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Average Total Asset/Average total equity

44. Debt to equity

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45. Return on common equity
NI/Revenue
(Cash+Marketable Securities)/Current Liabilities
NI available to common/average common equity
CFO/average total equity

46. Payable Turnover
EBIT/Revenue
Purchases/Average trade payable
NI available to common/average common equity
STD of Sales/Mean Sales

47. Cash to income
NI available to common/average common equity
CFO/operating income
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/average total equity

48. Debt to Asset
CFO/Net Revenue
NI/Revenue
COGS/Average Inventory
Total Debt/Total Asset

49. Dividend payment
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/dividends paid
Revenue/Average Working Capital
STD NI/Mean NI

50. CV NI
EBIT/total asset
STD NI/Mean NI
[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