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level: Level 1

Questions and Answers List

level questions: Level 1

Question	Answer
=[(value at end) - (value at beginning)]/ value at beginning	portfolio growth
=Liabilities / Equity	Debt to Equity Ratio (DER)
=net income after taxes and before donations / average assets	return on average assets (ROA)
= Portfolio at risk (xx days) / Gross loan portfolio	NPL30 Ratio
= (operating expenses which does not include financial expenses and loan loss provision) / average gross loan portfolio	Operating Expense Ratio
# of active borrowers (or outstanding loans) / # of loan officers	Loan Officer Productivity
= (Operating expenses which does not include financial expenses and loan loss provision) / average # of loans outstanding	Cost per Loan
= # of female clients / # of active clients	Outreach to female clients
= financial revenue / average gross loan portfolio	Portfolio Yield
= # of active clients / (# of active clients + the # of new clients)	Client retention rate
=[(cash + temporary investments + accounts receivable) / current liabilities]:1	acid test (or known as quick ratio)
= selling price - cost	Mark up rate
multiplying the monthly amount by the number of months unpaid, plus any late fees or other penalties. Subtract from this figure any partial payments you have made since the last month for which you paid in full.	arrears ratio
A loan loss provision is an expense set aside as an allowance for uncollected loans and loan payments. This provision is used to cover a number of factors associated with potential loan losses, including bad loans, customer defaults, and renegotiated terms of a loan that incur lower than previously estimated payments.	loan loss provision expense
Customer revenue minus the costs of acquiring and serving the customer	Customer lifetime value (CLV)
= net income after taxes and before donations / average equity	Return on Equity (ROE)
operating expenses / average number of loans outstanding	cost per loan
short term assets / short term liabilities	Current Ratio
= add both years/2 for the gross average loan portfolio	Gross average loan portfolio
1.calculate total costs = project annual admin costs related to all savings operations (95,300 USD) + (annual interest rate paid to customers on savings balance 2% X 34USD average balance per savings account X average # of active savings accounts 25,490) = 112,633.20 USD 2. = 112,633.20 USD / (25490 accounts X 34 USD) = 13% 3. internal transfer price to cover all costs = 13%	internal transfer price for a savings product
total debt / total assets	Debt to asset ratio
= total equity / total assets	equity ratio
= net income / sales	profit margin
= revenue - COGS	gross margin
= (units sold / units products)*(direct materials and direct labor costs + indirect manufacturing costs)	COGS
= variable cost/unit + fixed cost/unit	total unit cost
step 1: calculate total cost = annual admin costs + (annual interest rate X average balance per customer X average # of accounts Step 2: total cost / (# of accounts X aver balance per account)	internal transfer price