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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. CV NI
(market rate at issue)*(balance sheet value of the liability at beg period)
EBIT/total asset
STD NI/Mean NI
Annual Sales/Average receivables

2. Return on equity
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/average total equity
NI available to common/average common equity
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

3. CV Operating Income
Gross Profit/Revenue
STD OI/mean OI
Total Debt/Total shareholders' equity
CFO/average total assets

4. Receivables Turnover
(market rate at issue)*(balance sheet value of the liability at beg period)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
STD NI/Mean NI
Annual Sales/Average receivables

5. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
[NI/sales][Sales/Assets][Assets/Equity]
CFO-fixed capital investment+net borrowing
Purchases/Average trade payable

6. Working Capital Turnover
CFO/average total assets
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Revenue/Average Working Capital
Cash+Marketable Securities+ Receivables)/Current Liabilities

7. Cash to ROE
(market rate at issue)*(balance sheet value of the liability at beg period)
[NI/sales][Sales/Assets][Assets/Equity]
CFO/average total equity
Gross Profit/Revenue

8. Original DuPont:ROE
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/average total equity
[NI/sales][Sales/Assets][Assets/Equity]
EBIT/total asset

9. Income tax expense
NI/average total equity
Taxes payable+Change in DTL - Change in DTA
CFO/Net Revenue
CFO/Total debt

10. Debt payment
(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 long-term debt repayment
(NI-preferred dividends)/weighted average of common shares
Total debt/(Total debt+Total shareholders equity)

11. CV sales
STD of Sales/Mean Sales
(market rate at issue)*(balance sheet value of the liability at beg period)
Total Debt/Total Asset
(CFO-preferred dividends)/weighted average number of common shares

12. Cash to income
NI/average total equity
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/operating income
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

13. FCFE
CFO-fixed capital investment+net borrowing
CFO/operating income
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI/Revenue

14. Pretax Income
EBT/Revenue
CFO/cash paid for long term asset
Revenue/Average Total Assets
365/payable turnover ratio

15. Straight Line depreciation
Cost-Salvage/useful Life
EBT/Revenue
CA/CL
CFO/dividends paid

16. Basic EPS
EBIT/total asset
Annual Sales/Average receivables
(NI-preferred dividends)/weighted average of common shares
(EBIT+lease payments)/(interest payments+lease payments)

17. Payable Turnover
CFO/Net Revenue
Cost-Salvage/useful Life
Purchases/Average trade payable
365/receivables turnover

18. Gross Profit Margin
CFO/cash outflows from investing and financing
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Gross Profit/Revenue
365/Inventory turnover

19. Investing and financing
365/Inventory turnover
CFO/cash outflows from investing and financing
(EBIT+lease payments)/(interest payments+lease payments)
Taxes payable+Change in DTL - Change in DTA

20. Operating return on assets
EBIT/total asset
CFO/Total debt
NI available to common/average common equity
(2/useful life)*(Cost-Depreciation)

21. Units in production
NI/total capital
[(Orginal Cost-Salvage)/Life in output units] * output units in production
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Total Debt/Total Asset

22. Current Ratio
Purchases/Average trade payable
CA/CL
Revenue/Average Working Capital
Gross Profit/Revenue

23. Debt coverage
NI/Revenue
Average Total Asset/Average total equity
CFO/Total debt
Total debt/(Total debt+Total shareholders equity)

24. CF to Revenue
CFO/operating income
Cost-Salvage/useful Life
CFO/Net Revenue
CFO/Total debt

25. CF per share
[NI/sales][Sales/Assets][Assets/Equity]
CFO/cash outflows from investing and financing
(CFO-preferred dividends)/weighted average number of common shares
CFO/dividends paid

26. Day of inventory on hand
365/Inventory turnover
CFO/cash long-term debt repayment
365/payable turnover ratio
CFO/dividends paid

27. DDB
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity
COGS/Average Inventory
NI/average total equity

28. Debt to capital
Total debt/(Total debt+Total shareholders equity)
CFO-fixed capital investment+net borrowing
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/Net Revenue

29. Debt to Asset
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Total Assets
Total Debt/Total Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

30. Cash Conversion Cycle
COGS/Average Inventory
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Revenue/Average Working Capital
(EBIT+lease payments)/(interest payments+lease payments)

31. Net Profit Margin
365/Inventory turnover
Begininng inventories+purchases-COGS
NI/Revenue
STD NI/Mean NI

32. Inventory turnover
Annual Sales/Average receivables
COGS/Average Inventory
CFO-fixed capital investment+net borrowing
Taxes payable+Change in DTL - Change in DTA

33. Return on common equity
Total debt/(Total debt+Total shareholders equity)
NI available to common/average common equity
(EBIT+lease payments)/(interest payments+lease payments)
(CFO-preferred dividends)/weighted average number of common shares

34. Debt to equity

35. Diluted EPS
Average Total Asset/Average total equity
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)
COGS/Average Inventory

36. Return on Asset
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
EBIT/total asset
(CFO+interest paid+taxes paid )/interest paid
Revenue/Average Working Capital

37. FCFF
(2/useful life)*(Cost-Depreciation)
CFO-fixed capital investment+net borrowing
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 paid for long term asset

38. Return on total capital
(CFO-preferred dividends)/weighted average number of common shares
EBT/Revenue
NI/total capital
CA/CL

39. Interest coverage
(CFO+interest paid+taxes paid )/interest paid
365/receivables turnover
(2/useful life)*(Cost-Depreciation)
EBIT/total asset

40. Cash Ratio
CFO/average total assets
(Cash+Marketable Securities)/Current Liabilities
CFO/cash paid for long term asset
Revenue/Average Total Assets

41. Dividend payment
(CFO-preferred dividends)/weighted average number of common shares
ROCE - ROA
Revenue/Average Total Assets
CFO/dividends paid

42. Fixed assets turnover
NI/total capital
Revenue/Average Fixed Assets
NI available to common/average common equity
STD NI/Mean NI

43. Days of sales outstanding
CFO/cash paid for long term asset
CA/CL
CFO/cash outflows from investing and financing
365/receivables turnover

44. Operating Profit Margin
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
EBIT/Revenue
CFO/dividends paid
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

45. Cash to ROA
EBT/Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Annual Sales/Average receivables
CFO/average total assets

46. Financial Leverage
Annual Sales/Average receivables
Average Total Asset/Average total equity
CFO/cash long-term debt repayment
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

47. Ending inventories
Begininng inventories+purchases-COGS
Revenue/Average Working Capital
ROCE - ROA
(2/useful life)*(Cost-Depreciation)

48. Defensive interval
NI/Revenue
Average Total Asset/Average total equity
365/payable turnover ratio
(Cash+Marketable securities+Receivables)/Average Daily Expenditures

49. Total asset turnover
Total debt/(Total debt+Total shareholders equity)
NI/total capital
ROCE - ROA
Revenue/Average Total Assets

50. Number of days of payable
[(Orginal Cost-Salvage)/Life in output units] * output units in production
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Revenue/Average Working Capital
365/payable turnover ratio