Equations Flashcards
Assets =
Liabilities + Equity
Income =
Revenue - Expenses
Average tax rate =
Tax bill / taxable income
Operating cash flow =
Earnings before interest and tax + Depreciation - Current taxes
Capital spending =
Buying fixed assets - Sale of fixed assets
Net working capital =
Ending net working capital - Beginning net working capital
Cash flow (A) =
Cast flow (B) + Cash flow (S)
Cash flow (B) =
Interest - (ending long term debt - beginning long term debt)
Cash flow (S) =
Dividend - (ending stock account - beginning stock account)
Current ratio =
Current assets / Current liabilities
Quick ratio =
(Current assets - inventories) / Current liabilities
Cash ratio =
Cash / Current liabilities
Total debt ratio =
(Total assets - total equity) / total assets
Times interest earned =
Earning before interest and tax / interest
Cash coverage =
(Earning before interest and tax + depreciation + amortisation) / interest
Inventory turnover =
Cost of goods sold / inventories
Days sales in inventory =
365 / inventory turnover
Receivable turnover =
Sales / account receivables
Days sales in receivables =
365 / receivable turnover
Total asset turnover =
Sales / total assets
Profit margin =
Net income / sales
Return on assets (ROA) =
Net income / total assets
Return on Equity (ROE) =
Net income / total equity
EBITDA margin =
EBITDA / sales
Market capitalisation =
Share price * no. shares
Price earning ratio =
Share price / earnings per share
Market to book ratio =
Market value per share / book value per share
Book value per share =
Total equity / no. shares
Enterprise value (EV) =
Market capitalisation + market value of interest bearing debt - cash
EV multiple =
EV / EBITDA
