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
, CFA Level 1 FRA
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
leverage - Answer average assets divided by average equity
Leverage - Answer 1 plus debt to equity ratio
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
, CFA Level 1 FRA
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
leverage - Answer average assets divided by average equity
Leverage - Answer 1 plus debt to equity ratio
