Test your basic knowledge |

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. 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