FinalExam-formulasheet-AFM101w11

FinalExam-formulasheet-AFM101w11 - University of Waterloo...

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University of Waterloo Final Exam Student Name: _________________________ AFM 101 Student Number: _________________________ Ratios Price- Earnings Ratio _Market Price_ Net Income What investors value your company at (the higher P-E ratio is, the more highly investors think of your company) Financial Leverage Ratio ___Average Total Assets___ Average Shareholders’ Equity How much of your company is funded off debt – the higher your financial leverage ratio is, the higher proportion that your company is funded off liabilities. Total Asset Turnover Ratio _____Net Sales_____ Average Total Assets How effective are the company’s assets at generating future sales (Higher is always better) Earnings per Share __Net Income Available to Common Shareholders__ Weighted-Average Number of Common Shares Outstanding during the Period How much are shareholders earning for their investment in the company (Higher is better) Net Profit Margin _Net Income_ Net Sales How effective is the company at turning sales into income (Higher is better) Quality of Income Ratio __Cash Flow from Operating Activities__ Net Income What proportion of net income is coming from actual operating activities (and in cash) (Higher is better) Capital Acquisition Ratio ____Cash Flow from Operating Activities____ Cash Paid for Property, Plant, and Equipment Can the company fund its capital expenditures (purchases of fixed assets) with its cash from operating activities? (Higher is better, >1 = YES, <1 = NO) Return on Equity ________Net Income________ Average Shareholders’ Equity What % return are shareholders getting for investing in the company? (Higher is better) 1
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Final Exam Student Name: _________________________ AFM 101 Student Number: _________________________ Gross Profit Percentage Gross Profit Net Sales How good is the company at keeping variable costs low per sale? (Higher is better) Eg. 20% for every $1 in sales, you have 80 cents as costs of goods sold = 20 cent (or 20%) as earnings from selling that unit. Accounts Receivable Turnover Ratio __________Net Sales__________ Average Net Trade Accounts Receivable How good is the company at recouping its A/R? (Higher is better) Average Ages of Receivables ___________365 days___________ Accounts Receivable Turnover Ratio OR Average Net Trade Accounts Receivable Average Sales per Day How long does it take to recover A/R? ( Lower is better) Inventory Turnover _Cost of Goods Sold_ Average Inventory Days to Sell Inventory _____365 days_____ Inventory Turnover OR ________Average Inventory________ Average Cost of Goods Sold per Day How long does it take to sell inventory on average? (in # of days, lower is better) Fixed Asset Turnover ___Net Sales Revenue___ Average Net Fixed Assets How good are your fixed assets at generating sales? (Higher is better) – higher ratio means that company can generate high number of sales with less fixed assets (hence less upfront costs) Current Ratio __Current Assets__ Current Liabilities
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This note was uploaded on 10/02/2011 for the course AFM 101 taught by Professor Kennedy during the Winter '08 term at Waterloo.

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FinalExam-formulasheet-AFM101w11 - University of Waterloo...

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