CFA Level 1 FRA study guide with complete solutions 2022
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CFA Level 1 FRA
Institution
CFA Level 1 FRA
Current Ratio
Current Assets divided by current liabilities
Quick Ratio
Cash plus marketable securities plus receivables divided by current liabilities
Cash Ratio
Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio
Cash plus marketable securi...
cfa level 1 fra study guide with complete solutions 2022
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CFA Level 1 FRA
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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
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