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Financial Reporting and Analysis
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Financial Reporting and Analysis
Flashcard Deck
Study
1
Question
ROFL=
Answer
ROE-ROAGauges the level of borrowed money used
2
Question
ROE=
Answer
ROA+ROFL
3
Question
Solvency: Cash Coverage
Answer
CFOA Before Interest and Taxes Paid/Interest Paid
4
Question
Liquidity: Current Ratio
Answer
Current Assets/Current Liabilities
5
Question
Liquidity: Receivable Turnover
Answer
Net Credit Sales/Average Net Receivables
6
Question
Liquidity: Average Age of Receivables
Answer
Days in Year/Recievables Turnover
7
Question
Liquidity: Inventory Turnover
Answer
COGS/Average Inventory
8
Question
Liquidity: Accounts Payable Turnover
Answer
COGS/Average Accounts Payable
9
Question
Solvency: Debt to Equity Ratio
Answer
Total Liabilities/ Stockholders' Equity
10
Question
Profitability: ROE
Answer
Net Income/Average Stockholder's equity
11
Question
Profitability: ROA
Answer
Net Income/ Average Total Assets
12
Question
Profitability: EPS
Answer
Net Income/Average Number of Shares Outstanding for the Period
13
Question
Profitability: Quality of Income
Answer
Cash Flow from Operating Activities/ Net Income
14
Question
Profitability: Profit Margin
Answer
Net Income/Net Sales Revenue
15
Question
Profitability: Fixed Asset Turnover
Answer
Net Sales Revenues/Average net fixed assets
16
Question
Liquidity: Cash Ratio
Answer
Cash+Cash Equivalents/Current Liabilities
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