CFA Level 1 FRA with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Current Ratio ✔Correct Answer-Current Assets divided by current liabilities
Quick Ratio ✔Correct Answer-Cash plus marketable securities plus receivables divided by current
liabilities
Cash Ratio ✔Correct Answer-Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio ✔Correct Answer-Cash plus marketable securities plus receivables divided
by average daily expenditures
Cash Conversion cycle ✔Correct Answer-days in inventory plus days in accounts receivables minus
days in accounts payable
Accounts receivable turnover ✔Correct Answer-revenue divided by average accounts receivable
inventory turnover ✔Correct Answer-cost of goods sold divided by average inventory
Accounts payable turnover ✔Correct Answer-purchases divided by average accounts payable
Cost of Goods Sold ✔Correct Answer-Beginning inventory plus purchases minus ending inventory
Operating cycle ✔Correct Answer-days in inventory plus days in accounts receivable
Fixed asset turnover ✔Correct Answer-revenue divided by average net fixed assets
working capital turnover ✔Correct Answer-revenue divided by average working capital
equity turnover ✔Correct Answer-revenue divided by average equity
debt to equity ratio ✔Correct Answer-total debt divided by total equity
debt ratio ✔Correct Answer-total debt divided by total assets
debt to total capital ratio ✔Correct Answer-total debt divided by total debt plus total equity
Financial leverage ratio ✔Correct Answer-average total assets divided by average total equity
interest coverage ratio ✔Correct Answer-EBIT divided by interest payments
Fixed charge coverage ratio ✔Correct Answer-EBIT plus lease payments divided by interest
payments plus lease payments
Gross profit ✔Correct Answer-Sales minus cost of goods sold
Gross profit margin ✔Correct Answer-gross profit divided by revenue
, operating profit margin ✔Correct Answer-operating profit divided by revenue
pretax margin ✔Correct Answer-earnings before tax divided by revenue
Net profit margin ✔Correct Answer-net income divided by revenue
Return on assets ✔Correct Answer-net income divided by average total assets
Return on Assets ✔Correct Answer-EBIT divided by average total assets
operating return on assets ✔Correct Answer-operating profit divided by average total assets
return on total capital ✔Correct Answer-EBIT divided by average total capital
Return on Equity ✔Correct Answer-net income divided by average total equity
Return on Equity ✔Correct Answer-Return on Assets times financial leverage
Return on Equity ✔Correct Answer-Net profit margin times asset turnover times leverage ratio
Return on common equity ✔Correct Answer-net income minus preferred dividends divided by
average common equity
DuPont Formula ✔Correct Answer-Net profit margin times total asset turnover times leverage
Net Profit margin ✔Correct Answer-net income divided by revenue
Total asset turnover ✔Correct Answer-Revenue divided by average assets
Leverage ✔Correct Answer-Average assets divided by average equity
Extended DuPont Formula ✔Correct Answer-Tax burden times interest burden times operating
profit margin times asset turnover times leverage
Tax burden ✔Correct Answer-Earnings after tax divided by earnings before tax
Interest burden ✔Correct Answer-Earnings before tax divided by EBIT
Operating profit margin ✔Correct Answer-EBIT divided by revenue
Total asset turnover ✔Correct Answer-revenue divided by average assets
leverage ✔Correct Answer-average assets divided by average equity
Leverage ✔Correct Answer-1 plus debt to equity ratio
Growth Rate ✔Correct Answer-retention rate times return on equity
Retention rate ✔Correct Answer-One minus dividend payout ratio
Dividend payout ratio ✔Correct Answer-dividends per share divided by earnings per share
Answers |Latest Version |Already Graded A+
Current Ratio ✔Correct Answer-Current Assets divided by current liabilities
Quick Ratio ✔Correct Answer-Cash plus marketable securities plus receivables divided by current
liabilities
Cash Ratio ✔Correct Answer-Cash plus marketable securities divided by current liabilities
Defensive Interval Ratio ✔Correct Answer-Cash plus marketable securities plus receivables divided
by average daily expenditures
Cash Conversion cycle ✔Correct Answer-days in inventory plus days in accounts receivables minus
days in accounts payable
Accounts receivable turnover ✔Correct Answer-revenue divided by average accounts receivable
inventory turnover ✔Correct Answer-cost of goods sold divided by average inventory
Accounts payable turnover ✔Correct Answer-purchases divided by average accounts payable
Cost of Goods Sold ✔Correct Answer-Beginning inventory plus purchases minus ending inventory
Operating cycle ✔Correct Answer-days in inventory plus days in accounts receivable
Fixed asset turnover ✔Correct Answer-revenue divided by average net fixed assets
working capital turnover ✔Correct Answer-revenue divided by average working capital
equity turnover ✔Correct Answer-revenue divided by average equity
debt to equity ratio ✔Correct Answer-total debt divided by total equity
debt ratio ✔Correct Answer-total debt divided by total assets
debt to total capital ratio ✔Correct Answer-total debt divided by total debt plus total equity
Financial leverage ratio ✔Correct Answer-average total assets divided by average total equity
interest coverage ratio ✔Correct Answer-EBIT divided by interest payments
Fixed charge coverage ratio ✔Correct Answer-EBIT plus lease payments divided by interest
payments plus lease payments
Gross profit ✔Correct Answer-Sales minus cost of goods sold
Gross profit margin ✔Correct Answer-gross profit divided by revenue
, operating profit margin ✔Correct Answer-operating profit divided by revenue
pretax margin ✔Correct Answer-earnings before tax divided by revenue
Net profit margin ✔Correct Answer-net income divided by revenue
Return on assets ✔Correct Answer-net income divided by average total assets
Return on Assets ✔Correct Answer-EBIT divided by average total assets
operating return on assets ✔Correct Answer-operating profit divided by average total assets
return on total capital ✔Correct Answer-EBIT divided by average total capital
Return on Equity ✔Correct Answer-net income divided by average total equity
Return on Equity ✔Correct Answer-Return on Assets times financial leverage
Return on Equity ✔Correct Answer-Net profit margin times asset turnover times leverage ratio
Return on common equity ✔Correct Answer-net income minus preferred dividends divided by
average common equity
DuPont Formula ✔Correct Answer-Net profit margin times total asset turnover times leverage
Net Profit margin ✔Correct Answer-net income divided by revenue
Total asset turnover ✔Correct Answer-Revenue divided by average assets
Leverage ✔Correct Answer-Average assets divided by average equity
Extended DuPont Formula ✔Correct Answer-Tax burden times interest burden times operating
profit margin times asset turnover times leverage
Tax burden ✔Correct Answer-Earnings after tax divided by earnings before tax
Interest burden ✔Correct Answer-Earnings before tax divided by EBIT
Operating profit margin ✔Correct Answer-EBIT divided by revenue
Total asset turnover ✔Correct Answer-revenue divided by average assets
leverage ✔Correct Answer-average assets divided by average equity
Leverage ✔Correct Answer-1 plus debt to equity ratio
Growth Rate ✔Correct Answer-retention rate times return on equity
Retention rate ✔Correct Answer-One minus dividend payout ratio
Dividend payout ratio ✔Correct Answer-dividends per share divided by earnings per share
