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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. CF to Revenue
Total debt/(Total debt+Total shareholders equity)
365/payable turnover ratio
CFO/Net Revenue
CFO/average total assets

2. Defensive interval
CFO-fixed capital investment+net borrowing
Annual Sales/Average receivables
Begininng inventories+purchases-COGS
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

3. CV sales
365/payable turnover ratio
STD of Sales/Mean Sales
NI/total capital
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

4. Return on 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-preferred dividends)/weighted average number of common shares
CFO/average total assets
NI available to common/average common equity

5. Leverage
365/Inventory turnover
(NI-preferred dividends)/weighted average of common shares
(EBIT+lease payments)/(interest payments+lease payments)
ROCE - ROA

6. FCFE
EBT/Revenue
CFO-fixed capital investment+net borrowing
365/payable turnover ratio
STD NI/Mean NI

7. Debt to capital
Cost-Salvage/useful Life
Total debt/(Total debt+Total shareholders equity)
CFO/cash paid for long term asset
(CFO+interest paid+taxes paid )/interest paid

8. Total asset turnover
(CFO+interest paid+taxes paid )/interest paid
Revenue/Average Total Assets
CFO/average total assets
CFO/cash long-term debt repayment

9. Original DuPont:ROE
[NI/sales][Sales/Assets][Assets/Equity]
NI/Revenue
NI/total capital
CFO/average total equity

10. Return on total capital
CFO/average total assets
NI/total capital
NI available to common/average common equity
CFO/Net Revenue

11. DDB
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity
(Cash+Marketable Securities)/Current Liabilities
Revenue/Average Working Capital

12. Return on Asset
CA/CL
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
NI/average total equity
COGS/Average Inventory

13. Number of days of payable
CFO/Net Revenue
CFO/dividends paid
365/payable turnover ratio
Revenue/Average Working Capital

14. Current Ratio
Revenue/Average Total Assets
CA/CL
365/Inventory turnover
(EBIT+lease payments)/(interest payments+lease payments)

15. Days of sales outstanding
EBIT/total asset
Total Debt/Total shareholders' equity
NI/Revenue
365/receivables turnover

16. Debt coverage
CFO/Total debt
(CFO-preferred dividends)/weighted average number of common shares
(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/total capital

17. Gross Profit Margin
365/Inventory turnover
CA/CL
[NI/sales][Sales/Assets][Assets/Equity]
Gross Profit/Revenue

18. Basic EPS
(NI-preferred dividends)/weighted average of common shares
(CFO-preferred dividends)/weighted average number of common shares
Cash+Marketable Securities+ Receivables)/Current Liabilities
[NI/sales][Sales/Assets][Assets/Equity]

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

20. Investing and financing
EBIT/total asset
365/receivables turnover
CFO/cash outflows from investing and financing
EBT/Revenue

21. Diluted EPS
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)
CFO/operating income
[(Orginal Cost-Salvage)/Life in output units] * output units in production

22. Day of inventory on hand
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
365/Inventory turnover
(Cash+Marketable Securities)/Current Liabilities
Cost-Salvage/useful Life

23. FCFF
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/operating income
EBIT/total asset

24. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
Cost-Salvage/useful Life
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/average total assets

25. Interest expense
(market rate at issue)*(balance sheet value of the liability at beg period)
(Cash+Marketable Securities)/Current Liabilities
Revenue/Average Fixed Assets
(EBIT+lease payments)/(interest payments+lease payments)

26. Cash Ratio
EBIT/total asset
(Cash+Marketable Securities)/Current Liabilities
COGS/Average Inventory
ROCE - ROA

27. Inventory turnover
COGS/Average Inventory
365/payable turnover ratio
Begininng inventories+purchases-COGS
(CFO+interest paid+taxes paid )/interest paid

28. Units in production
Total Debt/Total shareholders' equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
365/receivables turnover
CFO/Total debt

29. Ending inventories
Taxes payable+Change in DTL - Change in DTA
CFO/cash paid for long term asset
Revenue/Average Working Capital
Begininng inventories+purchases-COGS

30. Straight Line depreciation
(EBIT+lease payments)/(interest payments+lease payments)
Cost-Salvage/useful Life
Total debt/(Total debt+Total shareholders equity)
365/payable turnover ratio

31. Cash to ROA
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
CFO/average total assets

32. Debt payment
CFO-fixed capital investment+net borrowing
365/Inventory turnover
CFO/cash long-term debt repayment
CFO/average total assets

33. Cash Conversion Cycle
(Cash+Marketable Securities)/Current Liabilities
EBIT/Revenue
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

34. Pretax Income
(Cash+Marketable Securities)/Current Liabilities
CFO/average total equity
(market rate at issue)*(balance sheet value of the liability at beg period)
EBT/Revenue

35. Net Profit Margin
Total Debt/Total shareholders' equity
Cost-Salvage/useful Life
NI/Revenue
CFO/cash long-term debt repayment

36. Dividend payment
STD OI/mean OI
(CFO+interest paid+taxes paid )/interest paid
CFO/average total equity
CFO/dividends paid

37. Cash to income
Begininng inventories+purchases-COGS
CFO/operating income
Average Total Asset/Average total equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

38. CF per share
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO-fixed capital investment+net borrowing
NI/average total equity
(CFO-preferred dividends)/weighted average number of common shares

39. Debt to Asset
(CFO-preferred dividends)/weighted average number of common shares
Total Debt/Total Asset
CFO-fixed capital investment+net borrowing
(EBIT+lease payments)/(interest payments+lease payments)

40. CV NI
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
STD NI/Mean NI
CFO/cash paid for long term asset
STD OI/mean OI

41. Payable Turnover
Gross Profit/Revenue
(CFO+interest paid+taxes paid )/interest paid
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Purchases/Average trade payable

42. Receivables Turnover
CA/CL
Total Debt/Total Asset
Annual Sales/Average receivables
Taxes payable+Change in DTL - Change in DTA

43. Interest coverage
Revenue/Average Fixed Assets
CFO/average total equity
(CFO+interest paid+taxes paid )/interest paid
CFO/cash long-term debt repayment

44. Reinvestment
STD NI/Mean NI
CA/CL
(NI-preferred dividends)/weighted average of common shares
CFO/cash paid for long term asset

45. Income tax expense
Total debt/(Total debt+Total shareholders equity)
Taxes payable+Change in DTL - Change in DTA
Total Debt/Total shareholders' equity
CFO/Total debt

46. Fixed assets turnover
NI/average total equity
Revenue/Average Fixed Assets
(CFO+interest paid+taxes paid )/interest paid
EBIT/total asset

47. Cash to ROE
Total Debt/Total shareholders' equity
CFO/average total equity
(market rate at issue)*(balance sheet value of the liability at beg period)
(CFO+interest paid+taxes paid )/interest paid

48. Fixed charged coverage
EBIT/Revenue
(EBIT+lease payments)/(interest payments+lease payments)
Revenue/Average Working Capital
STD OI/mean OI

49. Operating Profit Margin
EBIT/Revenue
(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/total capital
Total debt/(Total debt+Total shareholders equity)

50. Return on equity
CFO-fixed capital investment+net borrowing
NI/average total equity
Revenue/Average Working Capital
CFO/dividends paid