Current Ratio - Answer- Current Assets divided by current liabilities
Quick Ratio - Answer- Cash plus marketable securities plus receivables divided by current liabilities
Cash Ratio - Answer- Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio - Answer-...
CFA Level 1 FRA
Current Ratio - Answer- Current Assets divided by current liabilities
Quick Ratio - Answer- Cash plus marketable securities plus receivables divided by
current liabilities
Cash Ratio - Answer- Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio - Answer- Cash plus marketable securities plus receivables
divided by average daily expenditures
Cash Conversion cycle - Answer- days in inventory plus days in accounts receivables
minus days in accounts payable
Accounts receivable turnover - Answer- revenue divided by average accounts
receivable
inventory turnover - Answer- cost of goods sold divided by average inventory
Accounts payable turnover - Answer- purchases divided by average accounts payable
Cost of Goods Sold - Answer- Beginning inventory plus purchases minus ending
inventory
Operating cycle - Answer- days in inventory plus days in accounts receivable
Fixed asset turnover - Answer- revenue divided by average net fixed assets
working capital turnover - Answer- revenue divided by average working capital
equity turnover - Answer- revenue divided by average equity
debt to equity ratio - Answer- total debt divided by total equity
debt ratio - Answer- total debt divided by total assets
debt to total capital ratio - Answer- total debt divided by total debt plus total equity
Financial leverage ratio - Answer- average total assets divided by average total equity
interest coverage ratio - Answer- EBIT divided by interest payments
Fixed charge coverage ratio - Answer- EBIT plus lease payments divided by interest
payments plus lease payments
, Gross profit - Answer- Sales minus cost of goods sold
Gross profit margin - Answer- gross profit divided by revenue
operating profit margin - Answer- operating profit divided by revenue
pretax margin - Answer- earnings before tax divided by revenue
Net profit margin - Answer- net income divided by revenue
Return on assets - Answer- net income divided by average total assets
Return on Assets - Answer- EBIT divided by average total assets
operating return on assets - Answer- operating profit divided by average total assets
return on total capital - Answer- EBIT divided by average total capital
Return on Equity - Answer- net income divided by average total equity
Return on Equity - Answer- Return on Assets times financial leverage
Return on Equity - Answer- Net profit margin times asset turnover times leverage ratio
Return on common equity - Answer- net income minus preferred dividends divided by
average common equity
DuPont Formula - Answer- Net profit margin times total asset turnover times leverage
Net Profit margin - Answer- net income divided by revenue
Total asset turnover - Answer- Revenue divided by average assets
Leverage - Answer- Average assets divided by average equity
Extended DuPont Formula - Answer- Tax burden times interest burden times operating
profit margin times asset turnover times leverage
Tax burden - Answer- Earnings after tax divided by earnings before tax
Interest burden - Answer- Earnings before tax divided by EBIT
Operating profit margin - Answer- EBIT divided by revenue
Total asset turnover - Answer- revenue divided by average assets
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