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Simple FRA question

I’m sorry to ask something so basic… Mind is going into meltdown.
For ratios, whenever we use a balance sheet item - we always take the average of the period… ie. (2009 value + 2010 value) / 2

nope - for blended ratios (such as ROE), you can use the average. For pure balance sheet ratios, just use the balances.
I/S gives you a year’s activity, while a B/S gives you a point in time snapshot.
So when calculating ratios that rely on both B/S and I/S accounts, use the average on the B/S.

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Thanks. I think I’m getting stupider as we get closer to the exam!

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So Ive seen this 2 different ways so i think i must have forgotten already. Inventory turnover is COGS/Avg Inv. so you average the inventory for the 2 years, at least one thats the way i do it for work.

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Whoops im losing it too, blended ratios yes i see in the post. FML.

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