Equations Flashcards
What are the 2 high level Accounting Equations?
Assets = Liabilities + Net Worth
Net Worth = Assets - Liabilities
What’s the Cash Flow Equation?
Net Income + Depreciation + Amortization
What’s the GDP Equation?
Gross Domestic Product
C + I + G + NX
Consumer Spending (C)
Firm Investment (I)
Gov. Spending (G)
Net Exports (NX)
What’s the CAPM Equation?
Risk-Adjusted Return
What’s the Sharpe Ratio Equation?
What’s the Working Capital Equation?
CA - CL
What’s the Current Ratio Equation?
Working Capital Ratio
CA / CL
What’s the Quick Ratio Equation?
Acid-Test Ratio
Quick Assets / CL
What’s the Debt to Equity Ratio?
Total Liabilities / Shareholder’s Equity
What’s the Price to Book Ratio Equation?
What’s the Book Value Per Share (BVPS) Equation?
What’s the Trading Spread Equation?
Bid - Ask
What’s the Bond Conversion Ratio Equation?
What’s the Current Yield Equation of a Bond?
A Bond’s ROI
Dividend Yield