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Fall 23 > Fin 301 Mid Term Formulas > Flashcards

Fin 301 Mid Term Formulas Flashcards

1
Q

What is the Working Capital Formula?

A

Current Assets – Current Liabilities = Working Capital

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2
Q

What is the CFFA Formula?

A

Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders

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3
Q

One way to calculate Cash Flow Identity is

A

CFFA = OCF – NCS – CNWC

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4
Q

Another way to calculate Cash Flow Identity is

A

CFFA = CFTC + CFTS

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5
Q

What is the OCF formula?

A

OCF = Earnings Before Interest and Taxes (EBIT) + Depreciation Expense (D) - Taxes (T)

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6
Q

What is the Current Ratio Formula?

A

Current Ratio = Current Assets / Current Liabilities

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7
Q

What is the NCS formula?

A

NCS = Ending Net Fixed Assets (ENFA) - Beginning Net Fixed Assets (BNFA) + Depreciation Expense (D)

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8
Q

What is the CNWC formula?

A

CNWC = Ending Net Working Capital (ENWC) - Beginning Net Working Capital (BNWC)

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9
Q

What is the CFTC formula?

A

CFTC = Interest Expense Paid (IP) - Net New Borrowing (NNB)

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10
Q

What is the CFTS formula?

A

CFTS = Dividends Paid (DP) - Net New Equity Raised (NNER)

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11
Q

What is the Asset Formula?

A

Assets = Liabilities + Stockholders Equity

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12
Q

What is the Net Income Formula?

A

Revenues – Expenses = Net Income

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13
Q

What is the Cash Flow From Assets Formula (CFFA) ?

A

Cash Flow from Assets (CFFA) = Cash Flow to Creditors (CFTC) + Cash Flow to Stockholders (CFTS)

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14
Q

What is the Average Tax Rate Formula?

A

Average Tax Rate = Total Tax Bill / Taxable Income

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15
Q

What is the Quick Ratio Formula?

A

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

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16
Q

What is the Debt to Equity Multiplier Formula?

A

Debt to Equity Multiplier = Total Debt / Total Equity

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17
Q

What is the Equity Multiplier Formula?

A

Total Assets / Total Equity

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18
Q

What is the Formula for the Long Term Debt to Equity Ratio?

A

Long Term Debt to Equity Ratio = Long Term Debt / Total Equity

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19
Q

What is the Inventory Turnover Ratio Formula?

A

Inventory Turnover Ratio = Cost of Goods Sold / Inventory

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20
Q

What is the Days Sales in Inventory Ratio Formula?

A

Days Sales in Inventory Ratio = 365 days / Inventory Turnover

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21
Q

What is the Days Sales Outstanding Ratio Formula?

A

Days Sales Outstanding Ratio = 365 days / Accounts Receivable Turnover

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22
Q

What is the Total Asset Turnover Ratio Formula?

A

Total Asset Turnover Ratio = Sales / Total Assets

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23
Q

Overall Turnover Ratio is…

A

Turnover on anything = Sales / Anything

24
Q

What is the Profit Margin (Net Return on Sales) Formula?

A

Profit Margin (Net Return on Sales) = Net Income / Sales

25
Q

What is the Net Return on Assets Formula?

A

Net Return on Assets = Net Income / Total Assets

26
Q

What is the Net Return on Equity Formula?

A

Net Return on Equity = Net Income / Total Equity

27
Q

Net Return on Anything is…

A

Net Return on Anything = Net Income / Anything

28
Q

What is the Price Earnings Ratio Formula?

A

Price Earnings Ratio = Price Per Share / Earnings Per Share

29
Q

What is the Earnings Per Share Formula?

A

Earnings Per Share = Net Income / Total Shares Outstanding

30
Q

What is the Market to Book Ratio Formula?

A

Market to Book Ratio = Market Value Per Share / Book Value Per Share

31
Q

What is the formula for the Enterprise Value to EBITDA Ratio Formula?

A

Enterprise Value to EBITDA Ratio = Enterprise Value / EBITDA

32
Q

What is the Quick Ratio Formula?

A

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

33
Q

What is the Cash Ratio?

A

Cash Ratio = cash / current liabilities

34
Q

What is the Net Working Capital to Total Assets Ratio?

A

Net Working Capital to Total Assets Ratio = Net Working Capital / Total Assets

35
Q

What is the Interval Measure Ratio?

A

Interval Measure Ratio = Cash / Average Daily Operating Cost

36
Q

What is the Average Daily Operating Costs Formula?

A

Average Daily Operating Costs = Total Annual Operating Cost / 365 days

37
Q

What is the Average Daily Operating Costs Formula?

A

Average Daily Operating Costs = Total Annual Operating Cost / 365 days

38
Q

What is the Debt to Equity Ratio (Important Variation of Total Debt Ratio) Formula?

A

Debt to Equity Ratio (Important Variation of Total Debt Ratio) = Total Debt / Total Equity

39
Q

What is the Long Term Debt to Total Capitalization Ratio?

A

Long Term Debt to Total Capitalization Ratio = Long Term Debt / (Long Term Debt + Total Equity)

40
Q

What is the Total capitalization Formula?

A

Total capitalization = long term debt + equity

41
Q

What is the Times Interest Earned Ratio?

A

Times Interest Earned Ratio = Earnings Before Interest and Taxes / Interest Expense

42
Q

What is the Cash Coverage Ratio?

A

Cash Coverage Ratio = Earnings Before Interest, Taxes, and Depreciation / Interest Expense

43
Q

What is the Fixed Asset Turnover Ratio?

A

Fixed Asset Turnover Ratio = Sales / Net Fixed Assets

44
Q

Return on Equity is

A

Return on Equity = Profit Margin (Net Income / Sales) * Total Asset Turnover (Sales / Assets) * Equity Multiplier (Assets / Total Equity)

45
Q

What is the Dividend Payout Ratio ?

A

Cash Dividends/Net Income

46
Q

What is the Capital Intensity Ratio?

A

Total Assets/Sales

47
Q

What is the Internal Growth Rate ?

A

(ROAb) / [(1-(ROAb)]

48
Q

What is the Sustainable Growth Rate ?

A

(ROEb) / [1-(ROEb)]

49
Q

What is the Retention Ratio?

A

Addition to Retained Earnings / Net Income

50
Q

What is the Future Value Equation?

A

Future Value = PV * (1+r)^t

51
Q

What is the Present Value Equation?

A

Present Value = FV / (1+r)^t

52
Q

Look at Rate and Time Equation

A

goober, see notes

53
Q

Rule of 72 Equation

A

t = 72/%r or %r = 72/t

54
Q

Present Value of an Annuity Equation

55
Q

Future Value of an Annuity Equation

56
Q

Present Value of a Perpetuity

57
Q

Effective Annual Rate (EAR)

Fall 23 (18 decks)

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