Term
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Definition
| - analysing company's financial info in life of performance in prior period to reveal trends |
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Term
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Definition
| - analyzing current financial info against similar data from other companies |
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Term
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Definition
-compute % amounts of each item on f/s relative to base amount
- on a B/S (% of assets): vertical B/S
- I/S (% of revenues): vertical I/S
- facilitates ID of trends/changes in relationships between items |
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Term
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Definition
-% rate change in a company's financial position/perf.over time
-each line item expressed as % rate of change from base prd- horizontal statement
- can't be used if base is zero or(-) |
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Term
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Definition
-how efficient can meet current obligations
-current: CA/CL
-quick = CA – Inventories)/CL
OR
(Cash + Marketable Securities + Accounts Receivable) / CL
•Cash: (Cash + Marketable Securities) / CL
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Term
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Definition
- meet long term debt payments ie int coverage, fin. leverage
- interest coverage: operating income/ int expense
-financial leverage: assets/equity |
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Term
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Definition
- margins
- Gross margin: gross profit/revenues
- profit margins: NI/Revenues |
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Term
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Definition
| the net sales minus the cost of goods and services sold |
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Term
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Definition
-how efficiently a company is using its assets ie ROE, ROA, asset turnover, inventory turnover, A/R turnover
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Definition
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Term
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Definition
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Term
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Definition
| Revenues/AVG Total Assets |
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Term
| Inventory Turnover (days) |
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Definition
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Definition
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