Exam (elaborations)
CFA Level 1 Financial Ratios Exam Questions and Answers 2024( A+ GRADED 100% VERIFIED).
- Course
- Institution
CFA Level 1 Financial Ratios Exam Questions and Answers 2024( A+ GRADED 100% VERIFIED).
[Show more]
Seller
Follow
Content preview
CFA Level 1 Financial RatiosActivity Ratios - ANS Measure how efficiently a company performs day-to-day tasks such as
the collection of receivables and management of inventory
Days of Inventory on hand - ANS days in accounting period/inventory turnover
Inventory turnover - ANS cost of goods sold/average inventory
Receivables turnover - ANS revenue (or revenue from credit sales) / average receivables
Days Sales Outstanding - ANS Number of days in period / Receivables turnover
Payable Turnover - ANS purchases / average payables
Number of days payables - ANS Number of days in period / Payables turnover
Working Capital turnover - ANS revenue / average working capital
Fixed Assets turnover - ANS revenue/ average fixed assets
total assets turnover - ANS revenue / average total assets
Liquidity Ratios - ANS Measures of the short-term ability of the company to pay its maturing
obligations and to meet unexpected needs for cash.
Current Ratio - ANS current assets / current liabilities
Quick Ratio - ANS (Current Assets - Inventory) / Current Liabilities
Cash Ratio - ANS cash + marketable securities / current liabilities
Defensive Interval Ratio - ANS (Cash + Short-term marketable investments + Receivables) /
Daily cash expenditures
Cash Conversion Cycle - ANS DOH+DSO -number of days payables
Solvency Ratios - ANS measures a businesses ability to service long term obligations i. (AKA
leverage or LT Debt ratios)
Debt-to-assets - ANS Total Debt/Total Assets
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KINGJAY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now