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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. Pretax Income
(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)
EBT/Revenue
STD OI/mean OI
COGS/Average Inventory

2. Net Profit Margin
NI/Revenue
CFO/Net Revenue
NI available to common/average common equity
CFO/Total debt

3. Number of days of payable
365/Inventory turnover
Average Total Asset/Average total equity
Revenue/Average Working Capital
365/payable turnover ratio

4. Debt to capital
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total debt/(Total debt+Total shareholders equity)
365/Inventory turnover
CFO/average total equity

5. Interest expense
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Total debt
Gross Profit/Revenue
EBIT/total asset

6. Fixed assets turnover
EBIT/Revenue
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Fixed 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)

7. Cash to income
CFO/operating income
CFO/average total equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(NI-preferred dividends)/weighted average of common shares

8. CF to Revenue
CFO/Net Revenue
NI/Revenue
STD NI/Mean NI
(2/useful life)*(Cost-Depreciation)

9. Day of inventory on hand
EBT/Revenue
365/Inventory turnover
365/payable turnover ratio
STD OI/mean OI

10. Basic EPS
(NI-preferred dividends)/weighted average of common shares
Annual Sales/Average receivables
NI/average total equity
STD of Sales/Mean Sales

11. FCFE
CFO/Net Revenue
CFO-fixed capital investment+net borrowing
NI/Revenue
STD of Sales/Mean Sales

12. Diluted EPS
(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
(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

13. Total asset turnover
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
EBIT/Revenue
Revenue/Average Working Capital
Revenue/Average Total Assets

14. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(CFO+interest paid+taxes paid )/interest paid
(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

15. Payable Turnover
CFO/operating income
Purchases/Average trade payable
EBIT/Revenue
[NI/sales][Sales/Assets][Assets/Equity]

16. Quick Ratio
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
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/average total assets

17. Days of sales outstanding
ROCE - ROA
365/receivables turnover
STD of Sales/Mean Sales
EBIT/total asset

18. Ending inventories
STD OI/mean OI
Revenue/Average Working Capital
Begininng inventories+purchases-COGS
CFO/average total equity

19. Straight Line depreciation
(CFO+interest paid+taxes paid )/interest paid
CFO/average total assets
Cost-Salvage/useful Life
CA/CL

20. Financial Leverage
Average Total Asset/Average total equity
[NI/sales][Sales/Assets][Assets/Equity]
(Cash+Marketable Securities)/Current Liabilities
EBIT/total asset

21. Investing and financing
CA/CL
ROCE - ROA
(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 outflows from investing and financing

22. Operating return on assets
CFO-fixed capital investment+net borrowing
EBIT/total asset
CFO/operating income
Total Debt/Total Asset

23. Debt payment
Purchases/Average trade payable
CFO/average total equity
CFO/cash long-term debt repayment
(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. Cash to ROA
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
EBIT/Revenue
CFO/average total assets

25. Leverage
ROCE - ROA
(CFO+interest paid+taxes paid )/interest paid
Cost-Salvage/useful Life
[(Orginal Cost-Salvage)/Life in output units] * output units in production

26. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO-preferred dividends)/weighted average number of common shares
NI/average total equity
(NI-preferred dividends)/weighted average of common shares

27. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
CFO/cash long-term debt repayment
ROCE - ROA
(NI-preferred dividends)/weighted average of common shares

28. Operating Profit Margin
EBIT/Revenue
Total Debt/Total shareholders' equity
Cost-Salvage/useful Life
365/Inventory turnover

29. Gross Profit Margin
(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
Revenue/Average Total Assets
CFO/cash paid for long term asset

30. Defensive interval
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Total Debt/Total Asset
NI available to common/average common equity
Taxes payable+Change in DTL - Change in DTA

31. Reinvestment
(EBIT+lease payments)/(interest payments+lease payments)
CFO/cash long-term debt repayment
365/Inventory turnover
CFO/cash paid for long term asset

32. Dividend payment
COGS/Average Inventory
365/receivables turnover
CFO/dividends paid
STD NI/Mean NI

33. CV Operating Income
CFO/Total debt
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Net Revenue
STD OI/mean OI

34. Original DuPont:ROE
CFO/dividends paid
[NI/sales][Sales/Assets][Assets/Equity]
Total Debt/Total shareholders' equity
NI/total capital

35. CF per share
(NI-preferred dividends)/weighted average of common shares
(CFO-preferred dividends)/weighted average number of common shares
NI/Revenue
CFO/operating income

36. Return on total capital
NI/Revenue
STD NI/Mean NI
NI/total capital
CFO/operating income

37. CV sales
STD of Sales/Mean Sales
STD NI/Mean NI
(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)
(2/useful life)*(Cost-Depreciation)

38. Cash to ROE
CFO/average total equity
CFO/dividends paid
Revenue/Average Working Capital
Purchases/Average trade payable

39. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
(NI-preferred dividends)/weighted average of common shares
(EBIT+lease payments)/(interest payments+lease payments)
365/payable turnover ratio

40. Debt coverage
ROCE - ROA
(EBIT+lease payments)/(interest payments+lease payments)
STD of Sales/Mean Sales
CFO/Total debt

41. Interest coverage
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Average Total Asset/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
(CFO+interest paid+taxes paid )/interest paid

42. Debt to Asset
Total Debt/Total Asset
Annual Sales/Average receivables
CFO/Net Revenue
(EBIT+lease payments)/(interest payments+lease payments)

43. Income tax expense
EBT/Revenue
Taxes payable+Change in DTL - Change in DTA
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total Debt/Total shareholders' equity

44. CV NI
CFO/operating income
Begininng inventories+purchases-COGS
CFO/average total assets
STD NI/Mean NI

45. 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
Purchases/Average trade payable
Revenue/Average Total Assets

46. Inventory 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)
NI/average total equity
COGS/Average Inventory
CFO/Net Revenue

47. Fixed charged coverage
Purchases/Average trade payable
EBIT/total asset
STD OI/mean OI
(EBIT+lease payments)/(interest payments+lease payments)

48. Working Capital Turnover
Revenue/Average Working Capital
STD OI/mean OI
Cash+Marketable Securities+ Receivables)/Current Liabilities
EBT/Revenue

49. DDB
(2/useful life)*(Cost-Depreciation)
Revenue/Average Fixed Assets
CFO/cash paid for long term asset
COGS/Average Inventory

50. Debt to equity