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CFA Financial Ratios
| Question | Answer |
|---|---|
| receivable turnover | annual sales/average receivables |
| days of sales outstanding | 365/receivables turnover |
| inventory turnover | cost of goods sold/average inventory |
| days of inventory on hand | 365/inventory turnover |
| payables turnover | purchases/average trade payables |
| number of days of payables | 365/payables turnover ratio |
| total asset turnover | revenue/average total assets |
| fixed asset turnover | revenue/average net fixed assets |
| working capital turnover | revenue/average working capital |
| current ratio | current assets/current liabilities |
| quick ratio | (cash + marketable securities + receivables)/current liabilities |
| cash ratio | (cash + marketable securities)/current liabilities |
| defensive interval | (cash + marketable securities + receivables)/average daily expenditures |
| cash conversion cycle | days sales outstanding + days of inventory on hand - number of days of payables |
| debt-to-equity | total debt/total shareholders' equity |
| debt-to-capital | total debt/(total debt + total shareholders' equity) |
| debt-to-assets | total debt/total assets |
| financial leverage | average total assets/average total equity |
| interest coverage | earnings before interest and taxes/interest payments |
| fixed charge coverage | (earnings before interest and taxes + lease payments)/(interest payments + lease payments) |
| net profit margin | net income/revenue |
| gross profit margin | gross profit/revenue |
| operating profit margin | operating income/revenue or EBIT/revenue |
| pretax margin | EBT/revenue |
| return on assets(ROA) | net income/average total assets or (net income + interest expense(1-tax rate))/average total assets |
| operating return on assets | operating income/average total assets or EBIT/average total assets |
| return on total capital(ROTC) | EBIT/average total capital |
| return on equity(ROE) | net income/average total equity |
| return on common equity | (net income - preferred dividends)/average common equity |
| equity turnover | Revenue/Equity |
| tax burden | Net Income/EBT |
| interest burden | EBT/EBIT |
| EBIT/margin | EBIT/Revenue |
| ROE | Net Profit Margin * Equity Turnover ROA * Financial Leverage Net Profit Margin * Asset Turnover * Financial Leverage |
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515801127
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