Finance Flashcards
Wynkoop Brewing Company
Russ Schehrer, John Hickenlooper, Jerry Williams founded in 1988 LoDo. Start ups is created well produce- value for founders and investors, employment, utility and satisfaction for customers, benefits society overall
start ups need..
funding, lots of capital due to cash burn
net profit margin
Net income/sales
asset turnover
sales/total assets
return on assets
net income/ total assets
equity multiplier
total assets/total equity
return on equity (ROE)
net income/total equity
or
PROFIT MARGIN x TAT(AT) x EQUITY MULT.
gross profit margin
gross profit/sales
operating profit margin
EBIT/ sales
current ratio
current assets/current liabilites
quick ratio
current assets-inventory/ current liabilities
A/R turnover
sales/ A/R
DSO
365/ A/R turnover
inventory turnover
COGS/inventory
PP&E turnover
sales/net fixed assets
total debt ratio
total assets-total equity/ total assets
debt to equity ratio
total debt/ total equity
long term debt to capital
long term debt/long term debt+total equity
times interest earned
EBIT/interest expense
profit margin
net income/sales
total asset turnover
sales/ total assets
Net working captial
CA-CL
THEN
CA=CL+NWC
Net income
sales x profit margin
Return of assets (ROA)
net income/ assets
total equity
assest - debt
receivables turnover
Sales/ A/R
days sales in receivables
365/ turnover
internal growth rate
- calculate plow back ratio= b=1-payout ratio
2. IGR- (ROA x b)/ [1-(ROA x b)]
