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Unformatted text preview: b. With competitors 8. Comparative analysis a. Horizontal analysis (percentage changes) – pg. 669 in textbook b. Vertical analysis (common-size) – pg. 671 in textbook 9. Ratio analysis a. Liquidity b. Solvency c. Profitability d. Market e. Summary of ratios – pg. 673-674 in textbook 10. In class, projects, and exams: use year-end numbers where a formula call for an average 11. WileyPLUS: Wiley rules; do as Wiley says 12. Cash-to-Cash Operating Cycle*** - not in the text 13. Solvency Ratios a. Debt to total assets ratio i. Total liabilities/Total assets b. Cash debt coverage ratio i. CFFO/Average total liabilities (use year-end) c. Times interest earned i. Net income + Interest expense + Tax expense / Interest expense 1. <2.0 – not good 2. >2.0 – healthy d. Free cash flow i. CFFO – Capital expenditures – Dividends paid...
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This note was uploaded on 03/15/2009 for the course ECON 3A taught by Professor Loster during the Spring '07 term at UCSB.
- Spring '07