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Test your basic knowledge |
Financial Statement Analysis
Start Test
Study First
Subject
:
business-skills
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. Debt to capital
Total debt/(Total debt+Total shareholders equity)
Taxes payable+Change in DTL - Change in DTA
Revenue/Average Fixed Assets
CFO/Total debt
2. Basic EPS
CFO/cash outflows from investing and financing
STD OI/mean OI
(NI-preferred dividends)/weighted average of common shares
[NI/sales][Sales/Assets][Assets/Equity]
3. CF to Revenue
CFO/Net Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
(NI-preferred dividends)/weighted average of common shares
Total Debt/Total shareholders' equity
4. Days of sales outstanding
Purchases/Average trade payable
365/receivables turnover
(2/useful life)*(Cost-Depreciation)
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
5. FCFF
CFO/Total debt
NI/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
NI available to common/average common equity
6. CV sales
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Total Debt/Total Asset
CFO/operating income
STD of Sales/Mean Sales
7. Units in production
STD OI/mean OI
STD NI/Mean NI
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Total Debt/Total Asset
8. Ending inventories
STD NI/Mean NI
Begininng inventories+purchases-COGS
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD of Sales/Mean Sales
9. CF per share
NI available to common/average common equity
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(CFO-preferred dividends)/weighted average number of common shares
CFO/average total equity
10. Operating return on assets
STD of Sales/Mean Sales
ROCE - ROA
EBIT/total asset
(EBIT+lease payments)/(interest payments+lease payments)
11. Fixed charged coverage
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Total Assets
Total Debt/Total Asset
Purchases/Average trade payable
12. Net Profit Margin
Total Debt/Total shareholders' equity
NI/Revenue
CFO/Total debt
Annual Sales/Average receivables
13. CV Operating Income
CFO/Total debt
STD OI/mean OI
NI available to common/average common equity
ROCE - ROA
14. Number of days of payable
365/payable turnover ratio
Revenue/Average Total Assets
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
ROCE - ROA
15. Interest expense
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/dividends paid
(EBIT+lease payments)/(interest payments+lease payments)
STD OI/mean OI
16. Payable Turnover
(market rate at issue)*(balance sheet value of the liability at beg period)
Purchases/Average trade payable
Total Debt/Total Asset
Revenue/Average Fixed Assets
17. Return on total capital
CFO/average total equity
Purchases/Average trade payable
NI/total capital
Begininng inventories+purchases-COGS
18. Return on common equity
Cash+Marketable Securities+ Receivables)/Current Liabilities
EBT/Revenue
NI available to common/average common equity
STD NI/Mean NI
19. Financial Leverage
CFO/average total equity
365/Inventory turnover
Average Total Asset/Average total equity
CFO/cash paid for long term asset
20. DDB
EBT/Revenue
Begininng inventories+purchases-COGS
Average Total Asset/Average total equity
(2/useful life)*(Cost-Depreciation)
21. Cash Ratio
NI/Revenue
Revenue/Average Fixed Assets
(Cash+Marketable Securities)/Current Liabilities
Cost-Salvage/useful Life
22. Defensive interval
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Revenue/Average Total Assets
NI/total 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)
23. Debt coverage
Total Debt/Total Asset
CFO-fixed capital investment+net borrowing
CA/CL
CFO/Total debt
24. Total asset turnover
ROCE - ROA
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Total Assets
Average Total Asset/Average total equity
25. Working Capital Turnover
Revenue/Average Working Capital
CA/CL
CFO/cash paid for long term asset
NI/total capital
26. Original DuPont:ROE
Purchases/Average trade payable
Total debt/(Total debt+Total shareholders equity)
[NI/sales][Sales/Assets][Assets/Equity]
Total Debt/Total shareholders' equity
27. Debt to Asset
Average Total Asset/Average total equity
Total Debt/Total Asset
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
28. Dividend payment
STD NI/Mean NI
CFO/dividends paid
365/Inventory turnover
CFO-fixed capital investment+net borrowing
29. Gross Profit Margin
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Gross Profit/Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
NI available to common/average common equity
30. Leverage
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/cash outflows from investing and financing
ROCE - ROA
Revenue/Average Fixed Assets
31. Fixed assets turnover
NI available to common/average common equity
Revenue/Average Fixed Assets
STD OI/mean OI
EBT/Revenue
32. Straight Line depreciation
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
STD OI/mean OI
Cost-Salvage/useful Life
Revenue/Average Total Assets
33. 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
(Cash+Marketable Securities)/Current Liabilities
CFO/average total assets
NI/average total equity
34. Investing and financing
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/cash outflows from investing and financing
(EBIT+lease payments)/(interest payments+lease payments)
COGS/Average Inventory
35. Return on Asset
(Cash+Marketable Securities)/Current Liabilities
STD OI/mean OI
NI/average total equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
36. Pretax Income
(2/useful life)*(Cost-Depreciation)
EBT/Revenue
CFO/cash paid for long term asset
Average Total Asset/Average total equity
37. Debt payment
CFO/average total assets
365/receivables turnover
[NI/sales][Sales/Assets][Assets/Equity]
CFO/cash long-term debt repayment
38. Interest coverage
(CFO-preferred dividends)/weighted average number of common shares
Cost-Salvage/useful Life
NI/Revenue
(CFO+interest paid+taxes paid )/interest paid
39. Current Ratio
NI/Revenue
CA/CL
NI available to common/average common equity
EBT/Revenue
40. Cash to ROE
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Begininng inventories+purchases-COGS
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/average total equity
41. Day of inventory on hand
Total Debt/Total shareholders' equity
CFO-fixed capital investment+net borrowing
NI/total capital
365/Inventory turnover
42. Income tax expense
EBT/Revenue
CFO/cash long-term debt repayment
Taxes payable+Change in DTL - Change in DTA
Annual Sales/Average receivables
43. FCFE
Taxes payable+Change in DTL - Change in DTA
(EBIT+lease payments)/(interest payments+lease payments)
365/payable turnover ratio
CFO-fixed capital investment+net borrowing
44. CV NI
STD NI/Mean NI
(market rate at issue)*(balance sheet value of the liability at beg period)
NI/total capital
CFO-fixed capital investment+net borrowing
45. Inventory turnover
(2/useful life)*(Cost-Depreciation)
Total debt/(Total debt+Total shareholders equity)
COGS/Average Inventory
CFO/average total assets
46. Cash Conversion Cycle
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(CFO-preferred dividends)/weighted average number of common shares
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/dividends paid
47. Operating Profit Margin
EBIT/Revenue
Revenue/Average Total Assets
Revenue/Average Working Capital
STD of Sales/Mean Sales
48. Return on 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-fixed capital investment+net borrowing
NI/average total equity
(CFO+interest paid+taxes paid )/interest paid
49. Diluted EPS
EBIT/total asset
(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/sales][Sales/Assets][Assets/Equity]
(CFO+interest paid+taxes paid )/interest paid
50. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO-fixed capital investment+net borrowing
Total debt/(Total debt+Total shareholders equity)
CFO/cash long-term debt repayment