BEC Formulas Flashcards
Direct Materials Used
Beg DM
+DM Purchase
-Ending DM
Manufacturing Costs Incurred
Materials Used
+DL
+Overhead Applied
COGM
Beg WIP
+Total Manufacturing Costs Incurred
-End WIP
COGS
Beg FG
+COGM
-End FG
ROI
Net Income/ Average Investment Capital
Or
Profit Margin X Investment Turnover
Profit Margin
Net income/Sales
Investment Turnover
Sales/ total assets or total capital
Return on Assets
Net Income/ Average total assets
Return on Equity
Net Income/ Average total equity
DuPont
Net Profit Margin X Asset Turnover X Financial Leverage
Asset Turnover
Sales/ Average Total Assets
Financial Leverage
Average Total Assets/ Average Total Equity
Extended Dupont
Tax Burden X Interest Burden X Operating Income Margin X Asset Turnover X Financial leverage
Tax Burden
Net Income/ Pretax Income
Interest Burden
Pretax Income/ EBIT
Operating Income Margin
EBIT/ Sales
Residual Income
Net income - Required Return*
(NBV x Hurdle Rate)
Economic Value Added
EBIT X (1-T) - Required Return
Predetermined OH Rate
Budgeted Overhead Costs/ Estimated total DL hours
FIFO Equivalent Units
Beg Units X (1-% Complete)
+Units Completed
-Beg Units
+End WIP x % Complete
FIFO Cost Per Equivalent Unit
Current Costs Only/ Equivalent Units
Weighted Average Cost per Equivalent Unit
Beginning Cost + Current Cost/ Equivalent Units
Weighted Average
Units Completed
+End WIP X % completed
DOL
% Change EBIT/ % Change Sales
DFL
% Change EBT or EPS/ % Change EBIT
Times Interest Earned
EBIT/ Interest Expense
Equity Multiplier
Total Assets/ Total Equity
Cash conversion cycle
Days in Inventory + Days Sales in AR - Days of Payables Outstanding
Inventory Turnover
COGS/ Average Inventory
Days in Inventory
EI/(COGS/365)
AR Turnover
Sales/Average AR
Days sales in AR
Ending AR/(Sales/365)
OR
(Ending AR/Sales) X # Days in the Period
AP Turnover
COGS/ Average AP
Days Payables Outstanding
Ending AP/ (COGS/365)
Working Capital Turnover
Sales/ Average Working Capital
Reorder Point
Safety Stock + Lead Time x Sales during lead time
EOQ
sqrt(2 X Annual Sales in units X Cost per Purchase Order/ Annual Carrying Cost per unit)
APR Quick payment discount
(360/Pay period - Discount Period) X (Discount/ 100-%)
Constant Growth Dividend Discount
Dividend 1 year after X (1+ Growth)/(Required Return - Growth)
Price Earnings Ratio
Stock Price Today/ EPS expected in 1 year
Trailing PE Ratio
Stock Value today/ EPS for past year
PEG Ratio
(Stock price today/Expected EPS)/ (100 x Expected Growth rate)
Current Price of Stock (Using PEG)
PEG x Expected EPS x Growth or (G x 100)
Price to Sales
Stock Price Today/ Expected Sales in One year
Current price of stock
Price to Sales X Expected sales in 1 year
Price to Cash flow
Stock Price/ Expected cash flow in one year
Current price of Stock using P/CF
PCF X Expected cash flow in one year
Price to Book Ratio
Stock Price/ BV Common Equity today
NPV
After Tax Cash Flow
+ Depreciation x Tax rate
X PV
-Initial Cash flow
Profitability Index
PV CF/ Cost of initial investment
Payback period
Net initial investment/ Average Incremental cash flow (cash flow per period is even)
PV factor
1/(1+R)^n
PV Factor of Annuity
1-PV Factor/R
Economic Return %
Dividend + change in stock price/ Initial investment
Free Cash Flow
NI + Noncash Expense - Increase in WC - Capital Expenditures
Intangible Asset income approach
Expected FCF X Discount
Intangible asset cost method (NBV)
Original Cost to Buy - AD
Intangible asset replacement cost
Cost to replace + Assembly + Transportation
Prime Cost
DL + DM
Conversion Cost
DL + OH Applied
Sales Value at Split off
Final Selling price - identifiable cost incurred after split off
Total Factor productivity
Output/Total Cost
Partial Productivity
Output/Specific Quantity of material or labor
Variable cost per unit (High-low method)
Highest total cost - lowest total cost/ highest volume - lowest volume
Variable cost
Highest or lowest volume x Variable cost per unit
Fixed Costs
Total costs - Variable Costs
Absorption Costing
Revenue
-COGS
Gross Margin
-Operating Expenses
Net Income
Variable/Contribution/Direct
Revenue
-Variable Costs
Contribution Margin
-Fixed cots
Net Income
Contribution Margin
Revenue - Variable costs
Unit Contribution Margin
Unit sales price - variable cost per unit
Contribution Margin Ratio
CM/Revenue
Controllable Margin
CM - Controllable Fixed costs
Fixed Costs per Unit
Fixed MOH/Units produced
Breakeven point
Total Fixed Costs/ Unit CM
Breakeven point ($)
Unit price x breakeven point (units)
Breakeven point ($)
Total fixed costs/ CM ratio
Target profit (units)
Fixed costs + pretax profit/ Unit CM
Target sales ($)
Variable costs + Fixed Costs + Pretax profit
OR
Fixed Costs + Pretax Profit/ CM Ratio
Sales price per unit
Fixed Costs + Variable Costs + Pretax Profit/ # Units sold
Margin of safety
Total sales - Breakeven sales
Margin of safety %
Margin of safety/ total sales
Budgeted Production
Budgeted Sales + Desired EI- Beg Inventory
