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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. Return on Asset
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)
NI/Average Total assets or [NI+interest expense(1-T)]/average total assets
Begininng inventories+purchases-COGS

2. Interest coverage
(CFO+interest paid+taxes paid )/interest paid
CFO/dividends paid
Begininng inventories+purchases-COGS
(EBIT+lease payments)/(interest payments+lease payments)

3. Debt coverage
(EBIT+lease payments)/(interest payments+lease payments)
CFO/Total debt
(Cash+Marketable Securities)/Current Liabilities
Taxes payable+Change in DTL - Change in DTA

4. Fixed charged coverage
EBIT/total asset
Revenue/Average Working Capital
(EBIT+lease payments)/(interest payments+lease payments)
Begininng inventories+purchases-COGS

5. Payable Turnover
Revenue/Average Total Assets
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Purchases/Average trade payable
CFO/Total debt

6. CF per share
ROCE - ROA
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
(CFO-preferred dividends)/weighted average number of common shares
EBIT/Revenue

7. Reinvestment
CFO/Net Revenue
Purchases/Average trade payable
CFO/cash paid for long term asset
Cost-Salvage/useful Life

8. FCFE
CFO-fixed capital investment+net borrowing
Gross Profit/Revenue
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

9. Debt to Asset
EBIT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)
CFO/average total equity
Total Debt/Total Asset

10. Return on equity
(CFO-preferred dividends)/weighted average number of common shares
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
(NI-preferred dividends)/weighted average of common shares
NI/average total equity

11. Days of sales outstanding
NI/average total equity
CFO/cash long-term debt repayment
NI/total capital
365/receivables turnover

12. Total asset turnover
STD NI/Mean NI
Revenue/Average Total Assets
STD of Sales/Mean Sales
Average Total Asset/Average total equity

13. Debt to equity

14. Quick Ratio
CFO/dividends paid
Cash+Marketable Securities+ Receivables)/Current Liabilities
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Annual Sales/Average receivables

15. Cash to ROE
(CFO+interest paid+taxes paid )/interest paid
Begininng inventories+purchases-COGS
(Cash+Marketable Securities)/Current Liabilities
CFO/average total equity

16. Current Ratio
Taxes payable+Change in DTL - Change in DTA
CA/CL
Cash+Marketable Securities+ Receivables)/Current Liabilities
EBT/Revenue

17. Operating return on assets
365/payable turnover ratio
CFO/cash paid for long term asset
Total Debt/Total Asset
EBIT/total asset

18. Debt payment
Total debt/(Total debt+Total shareholders equity)
CFO/average total equity
CFO/cash long-term debt repayment
(Cash+Marketable Securities)/Current Liabilities

19. Dividend payment
Revenue/Average Total Assets
EBT/Revenue
Average Total Asset/Average total equity
CFO/dividends paid

20. Leverage
EBT/Revenue
ROCE - ROA
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

21. Units in production
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
CA/CL
NI available to common/average common equity

22. Original DuPont:ROE
Total debt/(Total debt+Total shareholders equity)
365/Inventory turnover
EBIT/Revenue
[NI/sales][Sales/Assets][Assets/Equity]

23. Diluted EPS
NI/Revenue
CFO/Total debt
CFO-fixed capital investment+net borrowing
(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)

24. Interest expense
COGS/Average Inventory
Taxes payable+Change in DTL - Change in DTA
EBIT/Revenue
(market rate at issue)*(balance sheet value of the liability at beg period)

25. Gross Profit Margin
CFO/dividends paid
(NI-preferred dividends)/weighted average of common shares
Gross Profit/Revenue
Annual Sales/Average receivables

26. CV Operating Income
CFO/operating income
365/Inventory turnover
CFO/cash outflows from investing and financing
STD OI/mean OI

27. Income tax expense
Taxes payable+Change in DTL - Change in DTA
CFO/cash long-term debt repayment
NI/total capital
(NI-preferred dividends)/weighted average of common shares

28. Cash Conversion Cycle
Begininng inventories+purchases-COGS
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
NI/total capital
ROCE - ROA

29. Cash Ratio
(Cash+Marketable Securities)/Current Liabilities
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(NI-preferred dividends)/weighted average of common shares
STD of Sales/Mean Sales

30. Debt to capital
CFO/Net Revenue
STD OI/mean OI
Gross Profit/Revenue
Total debt/(Total debt+Total shareholders equity)

31. CF to Revenue
[NI/sales][Sales/Assets][Assets/Equity]
CA/CL
CFO/cash outflows from investing and financing
CFO/Net Revenue

32. Straight Line depreciation
Taxes payable+Change in DTL - Change in DTA
(CFO-preferred dividends)/weighted average number of common shares
Cost-Salvage/useful Life
(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)

33. Day of inventory on hand
Annual Sales/Average receivables
365/receivables turnover
365/Inventory turnover
365/payable turnover ratio

34. Pretax Income
EBT/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)
CFO/Net Revenue
EBIT/Revenue

35. Cash to ROA
CFO/Net Revenue
CFO/average total assets
(EBIT+lease payments)/(interest payments+lease payments)
365/payable turnover ratio

36. Inventory turnover
COGS/Average Inventory
Gross Profit/Revenue
CFO-fixed capital investment+net borrowing
(CFO+interest paid+taxes paid )/interest paid

37. Return on total capital
Annual Sales/Average receivables
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
EBIT/total asset

38. CV NI
EBIT/Revenue
365/payable turnover ratio
(CFO-preferred dividends)/weighted average number of common shares
STD NI/Mean NI

39. Number of days of payable
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
Cash+Marketable Securities+ Receivables)/Current Liabilities
CFO/cash outflows from investing and financing
365/payable turnover ratio

40. Ending inventories
Revenue/Average Working Capital
NI/average total equity
[(Orginal Cost-Salvage)/Life in output units] * output units in production
Begininng inventories+purchases-COGS

41. FCFF
365/payable turnover ratio
CFO/dividends paid
NI+ non-cash charges+[Interest expense*(1-T)]-fixed capital investment-working capital investments OR CFO+[Interest expense*(1-T)]-fixed capital investment
Purchases/Average trade payable

42. Net Profit Margin
Cash+Marketable Securities+ Receivables)/Current Liabilities
(Cash+Marketable Securities)/Current Liabilities
NI/Revenue
Begininng inventories+purchases-COGS

43. Basic EPS
(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 Total Assets
(days sales outstanding)+(Days of Inventory on hand)-(Number of days payable)
(NI-preferred dividends)/weighted average of common shares

44. Receivables Turnover
Annual Sales/Average receivables
Total debt/(Total debt+Total shareholders equity)
[(Orginal Cost-Salvage)/Life in output units] * output units in production
ROCE - ROA

45. Working Capital Turnover
EBT/Revenue
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Revenue/Average Working Capital
Average Total Asset/Average total equity

46. Cash to income
CFO/operating income
(EBIT+lease payments)/(interest payments+lease payments)
Begininng inventories+purchases-COGS
365/receivables turnover

47. Return on common equity
[NI/sales][Sales/Assets][Assets/Equity]
Cash+Marketable Securities+ Receivables)/Current Liabilities
NI available to common/average common equity
Revenue/Average Total Assets

48. DDB
Cash+Marketable Securities+ Receivables)/Current Liabilities
(2/useful life)*(Cost-Depreciation)
(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-preferred dividends)/weighted average of common shares

49. Defensive interval
(Cash+Marketable securities+Receivables)/Average Daily Expenditures
Purchases/Average trade payable
COGS/Average Inventory
(2/useful life)*(Cost-Depreciation)

50. Fixed assets turnover
Revenue/Average Total Assets
Revenue/Average Fixed Assets
Total Debt/Total Asset
ROCE - ROA