Equations and Only Equations

Question 1

Assets

Answer 1

Liabilities + Shareholder’s Equity

Question 2

Working Capital

Answer 2

CA - CL

Question 3

Net Debt

Answer 3

ST Debt + LT Debt - Cash

Question 4

Current Ratio

Answer 4

CA/CL

Question 5

Quick Ratio

Answer 5

Acid Test

(CA - Inventory) / CL

Question 6

Debt-to-Equity

Answer 6

Debt / SE

Question 7

CCC

Answer 7

Days Inv. OUtstanding + Days Receivables OUtstanding - Days Payable OUtstanding

Question 8

Inventory Turnover

Answer 8

COGS / Avg. Inventory

Question 9

Receivables Turnover

Answer 9

Net Credit Sales / Avg. AR

or

Sales / Avg. AR

Question 10

Payables Turnover

Answer 10

COGS / Avg. AP

Question 11

FCFF

Answer 11

EBIT*(1-tax rate) + Noncash - Capex - Incr. in WC

CF from Ops + Interest Pmts*(1-tax rate) - capex

Question 12

FCFE

Answer 12

NI + Noncash - Capex - Incr. WC + Increases in Net Borrowing

FCFF - Int. Expense (1-Tax Rate) + Inceases in Net Borrowing

CF from Ops - Capex + Incr. New Borrowing

Question 13

FCF Yield

Answer 13

FCFE / Mkt Cap

FCFF / EV

Question 14

EPS

Answer 14

NI / Avg. Shares OUtstanding

Question 15

P/E

Answer 15

Mkt. Cap / NI

Mkt Price per Share / EPS

Question 16

EArnings Yield

Answer 16

EPS / Mkt Price

Question 17

Equity Turnover

Answer 17

Annual Sales / Avg. SE

Question 18

ROE

Answer 18

NI /SE

Question 19

ROA

Answer 19

NI / TA

Question 20

ROIC

Answer 20

EBIT / (Net Debt + Equity)

Question 21

Interest Coverage

Answer 21

EBIT / Interest

Question 22

Operating Leverage

Answer 22

% chng in EBIT / % chng in Sales

Question 23

EV

Answer 23

Mkt Cap + Mkt. Value of Pfd Shares + Net Debt + Non-Controlling Interests

Question 24

Price to CF

Answer 24

Mkt Cap / Operating Cash Flow

Question 25

Dividend Yield

Answer 25

Common Dividend / Mkt Cap Div per share / Mkt price per share

Question 26

Divdend payout ratio

Answer 26

Dividend / NI

Question 27

PV for year z

Answer 27

FCF year z / ((1+WACC)^z)

Question 28

Discounted Terminal value

Answer 28

TV / ((1+WACC)^T)

Question 29

Stock Price

Answer 29

Dividend / (Required rate of return - Growth rate) works if dividend growth constant

Question 30

Asset Turnover

Answer 30

Sales / Avg.TA

Question 31

Ending Inventory

Answer 31

Beginning Inventory + Purchases - COGS

Question 32

Conversion Ratio

Answer 32

Par / Conversion Price of Equity

Question 33

Conversion Parity Price

Answer 33

Mkt Val of Bond / Conversion Ratio

Question 34

Current Yield

Answer 34

Coupon / Mkt Price

Question 35

YTM

Answer 35

(Coupon - (Premium/years to maturity))/avg. of par and mkt price (Coupon - (Discount/years to maturity))/avg. of par and mkt price

Question 36

Discount Yield

Answer 36

(Discount / Face Value) * (365 / days to maturity)