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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. Cash to ROE
CFO/average total equity
CFO/Net Revenue
CFO/Total debt
CFO/cash outflows from investing and financing

2. Cash to ROA
(Cash+Marketable Securities)/Current Liabilities
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Taxes payable+Change in DTL - Change in DTA
CFO/average total assets

3. Cash Conversion Cycle
Total Debt/Total Asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Taxes payable+Change in DTL - Change in DTA
(Cash+Marketable Securities)/Current Liabilities

4. Receivables Turnover
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Annual Sales/Average receivables
(Cash+Marketable Securities)/Current Liabilities
[NI/sales][Sales/Assets][Assets/Equity]

5. Days of sales outstanding
Total Debt/Total Asset
CFO/Total debt
EBIT/Revenue
365/receivables turnover

6. Units in production
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CFO/Total debt
(CFO+interest paid+taxes paid )/interest paid
Revenue/Average Total Assets

7. Fixed assets turnover
NI/Revenue
CA/CL
Revenue/Average Fixed Assets
365/payable turnover ratio

8. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
STD of Sales/Mean Sales
Purchases/Average trade payable
CFO/dividends paid

9. CV Operating Income
STD OI/mean OI
365/Inventory turnover
Average Total Asset/Average total equity
365/payable turnover ratio

10. Fixed charged coverage
(EBIT+lease payments)/(interest payments+lease payments)
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
365/payable turnover ratio
Cost-Salvage/useful Life

11. Current Ratio
CFO/operating income
CA/CL
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
NI/total capital

12. Return on total capital
CFO-fixed capital investment+net borrowing
NI/total capital
Cash+Marketable Securities+ Receivables)/Current Liabilities
ROCE - ROA

13. Financial Leverage
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Working Capital
Average Total Asset/Average total equity
(Cash+Marketable Securities)/Current Liabilities

14. Debt coverage
[NI/sales][Sales/Assets][Assets/Equity]
CFO/Total debt
CFO-fixed capital investment+net borrowing
(NI-preferred dividends)/weighted average of common shares

15. Working Capital Turnover
CFO/Net Revenue
Revenue/Average Working 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)
(CFO-preferred dividends)/weighted average number of common shares

16. Original DuPont:ROE
Cash+Marketable Securities+ Receivables)/Current Liabilities
[NI/sales][Sales/Assets][Assets/Equity]
Cost-Salvage/useful Life
NI/total capital

17. Inventory turnover
COGS/Average Inventory
Revenue/Average Total Assets
EBT/Revenue
(Cash+Marketable Securities)/Current Liabilities

18. CV sales
Total Debt/Total Asset
Purchases/Average trade payable
(CFO-preferred dividends)/weighted average number of common shares
STD of Sales/Mean Sales

19. Basic EPS
Revenue/Average Fixed Assets
(NI-preferred dividends)/weighted average of common shares
NI/average total equity
CFO/cash long-term debt repayment

20. Day of inventory on hand
(2/useful life)*(Cost-Depreciation)
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/cash outflows from investing and financing
365/Inventory turnover

21. Operating Profit Margin
EBIT/Revenue
NI/Revenue
STD NI/Mean NI
Purchases/Average trade payable

22. Operating return on assets
STD of Sales/Mean Sales
EBIT/total asset
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Annual Sales/Average receivables

23. Total asset turnover
STD OI/mean OI
EBIT/total asset
Revenue/Average Total Assets
(Cash+Marketable Securities)/Current Liabilities

24. Debt to capital
CA/CL
Begininng inventories+purchases-COGS
ROCE - ROA
Total debt/(Total debt+Total shareholders equity)

25. Return on common equity
Average Total Asset/Average total equity
NI available to common/average common equity
(market rate at issue)*(balance sheet value of the liability at beg period)
365/Inventory turnover

26. Leverage
Cost-Salvage/useful Life
(2/useful life)*(Cost-Depreciation)
Average Total Asset/Average total equity
ROCE - ROA

27. Gross Profit Margin
365/receivables turnover
Gross Profit/Revenue
Cost-Salvage/useful Life
CFO/cash outflows from investing and financing

28. Interest expense
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/cash paid for long term asset
ROCE - ROA
EBIT/Revenue

29. Dividend payment
Purchases/Average trade payable
STD of Sales/Mean Sales
COGS/Average Inventory
CFO/dividends paid

30. Debt to equity

31. Income tax expense
365/payable turnover ratio
Cost-Salvage/useful Life
Taxes payable+Change in DTL - Change in DTA
CFO/Net Revenue

32. Pretax Income
CFO/Net Revenue
EBIT/Revenue
EBT/Revenue
(CFO-preferred dividends)/weighted average number of common shares

33. Return on Asset
CFO/Net Revenue
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
CFO/average total assets
(CFO+interest paid+taxes paid )/interest paid

34. Straight Line depreciation
Cost-Salvage/useful Life
CFO/cash outflows from investing and financing
CA/CL
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)

35. CV NI
STD NI/Mean NI
CFO/cash long-term debt repayment
(CFO-preferred dividends)/weighted average number of common shares
CFO/dividends paid

36. Number of days of payable
Revenue/Average Working Capital
365/payable turnover ratio
(NI-preferred dividends)/weighted average of common shares
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets

37. CF to Revenue
CFO/Net Revenue
Revenue/Average Total Assets
Cost-Salvage/useful Life
CFO-fixed capital investment+net borrowing

38. Ending inventories
365/Inventory turnover
Begininng inventories+purchases-COGS
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
STD NI/Mean NI

39. Debt to Asset
Begininng inventories+purchases-COGS
STD of Sales/Mean Sales
Total Debt/Total Asset
Revenue/Average Fixed Assets

40. FCFE
(EBIT+lease payments)/(interest payments+lease payments)
CFO-fixed capital investment+net borrowing
365/payable turnover ratio
NI/Revenue

41. Investing and financing
CA/CL
Purchases/Average trade payable
CFO/cash outflows from investing and financing
CFO/average total assets

42. Return on equity
CFO/average total assets
NI/average total equity
Total Debt/Total Asset
CFO-fixed capital investment+net borrowing

43. FCFF
CFO/Net Revenue
(CFO-preferred dividends)/weighted average number of common shares
COGS/Average Inventory
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment

44. CF per share
(market rate at issue)*(balance sheet value of the liability at beg period)
(EBIT+lease payments)/(interest payments+lease payments)
EBIT/Revenue
(CFO-preferred dividends)/weighted average number of common shares

45. Debt payment
Gross Profit/Revenue
Purchases/Average trade payable
(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

46. Defensive interval
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
CFO/average total assets
CFO/cash paid for long term asset
EBT/Revenue

47. Diluted EPS
STD NI/Mean NI
Total Debt/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)
Taxes payable+Change in DTL - Change in DTA

48. Quick Ratio
Cash+Marketable Securities+ Receivables)/Current Liabilities
Total Debt/Total shareholders' equity
(NI-preferred dividends)/weighted average of common shares
EBIT/total asset

49. Reinvestment
(CFO-preferred dividends)/weighted average number of common shares
CFO/cash paid for long term asset
STD of Sales/Mean Sales
Cost-Salvage/useful Life

50. Cash to income
CFO/operating income
COGS/Average Inventory
[NI/sales][Sales/Assets][Assets/Equity]
Revenue/Average Fixed Assets