5. formulas Flashcards
double declining balance (DDB depreciation)

basic EPS

diluted EPS

receivables turnover
activity ratio

days of sale outstanding
activity ratio

inventory turnover
activity ratio

days of inventory on hand
activity ratio

payables turnover
activity ratio

number of days payable
activity ratio

total asset turnover
activity ratio

fixed asset turnover
activity ratio

working capital turnover
activity ratio

current ratio
liquidity ratio

quick ratio
liquidity ratio

cash ratio
liquidity ratio

defensive interval
liquidity ratio

cash conversion cycle
liquidity ratio

debt-to-equity
solvency ratio

debt-to-capital
solvency ratio

financial leverage
solvency ratio

interest coverage
solvency ratio

fixed charge coverage
solvency ratio

net profit margin
profitability ratio

gross profit margin
profitability ratio

operating profit margin
profitability ratio

pretax margin
profitability ratio

return on assets (ROA)
(2 formulas)
profitability ratio

operating return on assets
profitability ratio

return on total capital
profitability ratio

return on equity
profitability ratio

return on common equity
profitability ratio

free cash flow to the firm (FCFF)

free cash flow to equity (FCFE)
cash flow from operation - fixed capital investment + net borrowing
common-size income statement ratios
income statement account / sales
common-size balance sheet ratio
balance sheet account / total assets
common-size cash flow ratios
cash flow statement account / revenues
gross profits
operating profits
net income
total capital
gross profits = net sales - COGS
operating profits = EBIT
net income = earnings after taxes but before dividends
total capital = long-term debt + short-term debt + common and preferred equity = total assets

original DuPont equiation (ROE)

extended DuPont equation (ROE)

sustainable growth rate (g)
g = RR * ROE
retention rate (RR) = net income available to common - dividends declared / net income available to common
= 1- dividend payout
dividend payout = dividends declared / net income available to common
Coefficients of Variation
CV sales

Coefficients of Variation
CV operating income

Coefficients of Variation
CV net income

ending inventory
ending inventory = beginning inventory + purhcases - COGS
straight-line depreciation

DDB depreciation

units-of-production depreciation

Deferred taxes:
income tax expense

Debt Liabilities:
interest expense
