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Unformatted text preview: Assets) aaJiQAI ~ !O¥-=1n.=:L-"-------~-=-9Ut-'D'""""(v'------~:rnv.fSL 3 Financial Ratios Profitability (can replace denominator with Total Equity) Return on Assets: Net Income /Total Assets EBITOA / Total Assets-Operating Cash Flow / Total Assets Gross Margin liquidity-Cash & Marketable Securities I Current liabilities-Cash & Marketable Securities I Current Assets-Quick Ratio: (Current Assets-Jnventorvl / Current Liabilities-Current Ratio: Current Assets I Current Liabilities Other Ratios and Balance Sheet Factors Macro Factors These are the same factors for all firms, but some firms may have different sensitivity to them-Unemployment-Industrial production growth-GDPgrowth-Aggregate Default Rates-Default Yield Spread-Total bond market volume-New debt to new equity issues-Stock market returns • • • 4...
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This note was uploaded on 09/06/2011 for the course FIN 428 taught by Professor Hood during the Fall '11 term at Iowa State.
- Fall '11