BEC Formulas Flashcards
What is the Quick Ratio?
CA-Inventory & Prepaids/CL
What is WACC
% of equity financingcost of equity+%of debt * cost of debt interest rate(1-tax rate).
Return on assets
net income/total assets
What is the current ratio?
current assets over liabilities
What is the times interest earned ratio?
ebit/tax rate to get pre tax.
add pretax to interest expense to get ebit then divide interest expense.
average collection period
365*avg ar/credit sales
How do you calculate the reorder point for inventory?
take units divided by the days in time and multiply by lead time
What is EOQ?
square root of 2annual salescost purchase order over the annual carrying cost
What is the scor model?
Plan(determining demand)n source(select vendors)make(products)deliver
How do you calculate nopal?
net operating profit after taxes-(invested capital*wacc)
What is the cash conversion cycle?
days in inventory+sales in ar’s less accounts payable.
To find the price of a stock if you have a peg ratio.
given peg, use peg ratio * earnings in the first year(eog) growth rate.
How do you find book value?
total assets minus total liabilities
How do you find Market capitalization?
market price per share * shares outstanding
payback period
outflow less the cumulative inflow of the previous year divided by current years inflows.
