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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. Interest coverage
Cost-Salvage/useful Life
CA/CL
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
(CFO+interest paid+taxes paid )/interest paid

2. Working Capital 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/sales][Sales/Assets][Assets/Equity]
CFO/dividends paid
Revenue/Average Working Capital

3. Total asset turnover
CFO/cash paid for long term asset
STD NI/Mean NI
CFO/Total debt
Revenue/Average Total Assets

4. Net Profit Margin
NI/Revenue
EBT/Revenue
Total Debt/Total shareholders' equity
EBIT/total asset

5. Quick Ratio
Total Debt/Total Asset
COGS/Average Inventory
Average Total Asset/Average total equity
Cash+Marketable Securities+ Receivables)/Current Liabilities

6. Return on equity
Revenue/Average Total Assets
NI/Revenue
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/average total equity

7. Debt to capital
Total debt/(Total debt+Total shareholders equity)
COGS/Average Inventory
Annual Sales/Average receivables
NI/total capital

8. CF to Revenue
CFO/dividends paid
(market rate at issue)*(balance sheet value of the liability at beg period)
EBT/Revenue
CFO/Net Revenue

9. Cash to ROA
CFO/average total assets
NI/Revenue
Revenue/Average Working Capital
Total debt/(Total debt+Total shareholders equity)

10. CF per share
Taxes payable+Change in DTL - Change in DTA
CFO/average total assets
(CFO+interest paid+taxes paid )/interest paid
(CFO-preferred dividends)/weighted average number of common shares

11. Number of days of payable
365/payable turnover ratio
NI/Revenue
(EBIT+lease payments)/(interest payments+lease payments)
Begininng inventories+purchases-COGS

12. Return on total capital
NI/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
(2/useful life)*(Cost-Depreciation)
CA/CL

13. Reinvestment
Average Total Asset/Average total equity
CFO/cash paid for long term asset
CFO/Total debt
CFO/operating income

14. Debt payment
365/Inventory turnover
Revenue/Average Fixed Assets
Begininng inventories+purchases-COGS
CFO/cash long-term debt repayment

15. Fixed charged coverage
(Cash+Marketable Securities)/Current Liabilities
Revenue/Average Total Assets
(NI-preferred dividends)/weighted average of common shares
(EBIT+lease payments)/(interest payments+lease payments)

16. Defensive interval
CFO/average total equity
(NI-preferred dividends)/weighted average of common shares
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Taxes payable+Change in DTL - Change in DTA

17. CV Operating Income
Revenue/Average Total Assets
CFO/Total debt
STD OI/mean OI
CFO/cash long-term debt repayment

18. Payable Turnover
Purchases/Average trade payable
(CFO+interest paid+taxes paid )/interest paid
ROCE - ROA
NI/average total equity

19. Operating return on assets
Cost-Salvage/useful Life
EBIT/total asset
(NI-preferred dividends)/weighted average of common shares
(2/useful life)*(Cost-Depreciation)

20. CV sales
CFO/cash paid for long term asset
STD of Sales/Mean Sales
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Cost-Salvage/useful Life

21. Fixed assets turnover
365/receivables turnover
Purchases/Average trade payable
Revenue/Average Fixed Assets
EBT/Revenue

22. FCFE
[NI/sales][Sales/Assets][Assets/Equity]
STD OI/mean OI
STD of Sales/Mean Sales
CFO-fixed capital investment+net borrowing

23. Cash to ROE
STD NI/Mean NI
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/average total equity

24. Operating Profit Margin
STD OI/mean OI
EBIT/Revenue
NI/Revenue
Begininng inventories+purchases-COGS

25. Dividend payment
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Gross Profit/Revenue
CFO/dividends paid
NI/total capital

26. Gross Profit Margin
Gross Profit/Revenue
Revenue/Average Fixed Assets
CFO/average total assets
Purchases/Average trade payable

27. Interest expense
CFO/Total debt
CFO/average total assets
EBT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)

28. DDB
STD NI/Mean NI
CFO/average total assets
(NI-preferred dividends)/weighted average of common shares
(2/useful life)*(Cost-Depreciation)

29. Return on Asset
CFO/cash paid for long term asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
[NI/sales][Sales/Assets][Assets/Equity]
(CFO-preferred dividends)/weighted average number of common shares

30. CV NI
NI/average total equity
STD NI/Mean NI
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(Cash+Marketable Securities)/Current Liabilities

31. Diluted EPS
EBIT/Revenue
CFO/cash paid for long term 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)
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

32. Debt to equity

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33. Leverage
ROCE - ROA
(EBIT+lease payments)/(interest payments+lease payments)
Gross Profit/Revenue
CFO/operating income

34. Inventory turnover
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Begininng inventories+purchases-COGS
COGS/Average Inventory
NI/total capital

35. Cash Conversion Cycle
CA/CL
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/total capital
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

36. Cash to income
Revenue/Average Total Assets
CFO/average total equity
CFO/operating 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)

37. Ending inventories
365/payable turnover ratio
Begininng inventories+purchases-COGS
Purchases/Average trade payable
ROCE - ROA

38. Financial Leverage
(market rate at issue)*(balance sheet value of the liability at beg period)
Average Total Asset/Average total 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)
Revenue/Average Fixed Assets

39. FCFF
NI/total capital
Cost-Salvage/useful Life
STD OI/mean OI
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

40. Pretax Income
CFO/Net Revenue
[NI/sales][Sales/Assets][Assets/Equity]
EBT/Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

41. Basic EPS
CA/CL
(NI-preferred dividends)/weighted average of common shares
(CFO-preferred dividends)/weighted average number of common shares
Taxes payable+Change in DTL - Change in DTA

42. Original DuPont:ROE
[NI/sales][Sales/Assets][Assets/Equity]
EBT/Revenue
CFO/operating income
STD NI/Mean NI

43. Current Ratio
Total Debt/Total Asset
NI available to common/average common equity
CFO/Total debt
CA/CL

44. Return on common 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
CFO/Net Revenue
Cash+Marketable Securities+ Receivables)/Current Liabilities

45. Receivables Turnover
Purchases/Average trade payable
Annual Sales/Average receivables
365/payable turnover ratio
Revenue/Average Working Capital

46. Days of sales outstanding
365/receivables turnover
Total debt/(Total debt+Total shareholders equity)
Begininng inventories+purchases-COGS
COGS/Average Inventory

47. Investing and financing
Revenue/Average Working Capital
(CFO+interest paid+taxes paid )/interest paid
EBIT/total asset
CFO/cash outflows from investing and financing

48. Income tax expense
CFO/Total debt
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Taxes payable+Change in DTL - Change in DTA
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

49. Debt to Asset
Total Debt/Total Asset
CFO/Total debt
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
CFO/dividends paid

50. Day of inventory on hand
(CFO+interest paid+taxes paid )/interest paid
365/Inventory turnover
Taxes payable+Change in DTL - Change in DTA
CA/CL