Hello,
I have not found anything in the readings, but is there a particular set of financial ratios that we have to memorize?
of course. know all the general ones.
current ratio, quick ratio, etc.
then know the accrual ratios
you probably want to know the financial ratios making dupont as well
and you want ti know general income ratios such as profit margin, net margin
and then you also want to know coverage ratios such as dividend coverage and interest coverage
probably a lot more… there’s scattered all over the material.
at least for the ones related to FX transation in FRA…which ones should we know
Not sure which ratios you’re refering to. I dont recall any financial ratios in fx translation.
No ratios with FX transaction but might be asked to recalculate ratios after adjusting for FX some BS and P/L positions. May be learned with a lot of practice.
One of the EOC questions asked about the effect of translate (temporal vs. current rate) certain the cash ratio, fixed asset turnover and the A/R turnover ratio.
Did not see any of these ratios in the section so I just wanted to know if we should be using these ratios.
It’s in my original response.
Cash ratios is current ratio, quick ratio, etc.
Asset turnover is part of dupont
A/R turnover is part of the all over the scattered all over the place…
So they might ask you the impact on certain ratios under current rate vs temporal rate method. So just be perfect with the conversions. Also, i guess 125mph forgot to mention the FCFE coverage ratio which is quite easy to goof up.