Chapter 1 & 2 Flashcards
Calculate EBIT
Revenues - Costs - Depreciation
Calculate Taxable Income
EBIT - Interest expense
Calculate Net Income
Taxable Income - Taxes
Calculate Market value of Equity
Stock Price * Shares outstanding
Calculate Book value of Equity
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Calculate Market to book ratio
Market value of equity / Book value of equity
Calcylate EVA
(After tax interest + Net income ) - (Cost of capital * Capital)
Calculate ROC
(After tax interest + net income ) / Total Capital
Calculate ROE
Net income / Equity
Calculate ROA
After tax interest + net income / Total Assets
Calculate Asset Turnover (efficiency ratio)
Sales / Total assets at start of the year
Calculate Inventory Turnover (Efficiency Ratio)
Cost of goods sold / Inventory at start of year
Calculate “Days in inventory” (Efficiency Ratio)
Inventory at start of the year / Daily cost of goods solds
Calculate Receivables turnover (Efficiency Ratio)
Sales / Receivables at start of the year
Calculate average collection period (Efficiency Ratio)
Receivables at start of the year / Daily sales