Financial Calcs Formulas Flashcards
Capital Cost Allowance (CCA)
CCA = UCC * CCA Rate * 50% (in the first year)
Depreciation Expense
Depreciation Expense = (Cost - Salvage Value) / Useful Life
Cost of Goods Sold (COGS)
COGS = Beginning Inventory + Purchases - Ending Inventory
Net Income
Net Income = Revenue - Expenses
Shareholders’ Equity
Shareholders’ Equity = Total Assets - Total Liabilities
Gross Rent Multiplier (GRM)
GRM = Property Price / Gross Rental Income
Return on Investment (ROI)
ROI = (Net Profit / Cost of Investment) * 100
Debt Service Coverage Ratio (DSCR)
DSCR = Net Operating Income / Total Debt Service
Operating Expense Ratio (OER)
OER = Operating Expenses / Gross Operating Income
Cash on Cash Return
Annual Pre - Tax Cash Flow / Total Cash Invested
Amortization
Amortization Schedule Calculation
Annual Percentage Rate (APR)
APR = [(Fees + Interest) / Principal] / n * 365
Value of Cash
Cash = Total Current Assets - Merchandise Inventory - Accounts Receivable
Value of Machinery
Machinery = Total Non - Current Assets + Accumulated Depreciation - Land
Total Non-Current Assets
Total Non - Current Assets = Total Assets - Total Current Assets
Share Capital
Share Capital = Total Shareholders’ Equity - Retained Earnings
Total Shareholders’ Equity
Total Shareholders’ Equity = Total Liabilities and Shareholders’ Equity - Total Liabilities
Total Liabilities and Shareholders’ Equity
Total Liabilities and Shareholders’ Equity = Total Assets
Income Tax Expense
Income Tax Expense = Revenue - (Interest Payments + Operating Expenses + Cost of Goods Sold) - After Tax Net Income
Building’s Capital Cost Allowance (First Year)
CCA = (CCA Rate * ((Annual Depreciation Expense * Estimated Economic Life) + Salvage Value)) * 0.5
UCC (Undepreciated Capital Cost)
UCC = Cost of Property - Cumulative CCA Claimed
Revenue
Revenue = Price * Quantity Sold
Operating Expenses
Operating Expenses = Salaries + Rent + Utilities + Office Supplies + Depreciation + Miscellaneous Expenses
Net Operating Income (NOI)
NOI = Gross Operating Income - Operating Expenses
Total Debt Service
Total Debt Service = Interest Payments + Principal Repayment
Gross Operating Income
Gross Operating Income = Gross Rental Income + Other Income
Principal
No specific formula, as Principal is the initial amount.
Annual Pre-Tax Cash Flow
Annual Pre - Tax Cash Flow = NOI - Debt Service
Total Cash Invested
Total Cash Invested = Down Payment + Closing Costs + Renovation Costs + Other Initial Costs
Debt Yield
Debt Yield = Net Operating Income / Loan Amount
Break-Even Occupancy
Break - Even Occupancy = (Operating Expenses + Debt Service) / Gross Potential Rent
Gross Rent Multiplier (GRM)
GRM = Property Price / Gross Annual Rental Income
Effective Gross Income (EGI)
EGI = Gross Potential Rent - Vacancy and Credit Losses + Other Income
Total Debt Service
Total Debt Service = Principal + Interest Payments
Loan-to-Value Ratio (LTV)
LTV = Loan Amount / Appraised Property Value
Loan-to-Value Ratio (LTV)
LTV = Appraised Value of the PropertyLoan Amount
Cost of Goods Sold (COGS)
COGS = Beginning Inventory + Purchases−Ending Inventory
Income Tax Expense
Income Tax Expense = Revenue−(Interest Expense + Operating Expense + Depreciation + Other Expenses)
Net Present Value (NPV)
NPV = ∑(1 + r)tRt−C0
Internal Rate of Return (IRR)
0 = ∑(1 + IRR)tRt−C0
Current Ratio
Current Ratio = Current LiabilitiesCurrent Assets
Quick Ratio (Acid-Test Ratio)
Quick Ratio = Current LiabilitiesCurrent Assets−Inventory
Debt-to-Equity Ratio
Debt - to - Equity Ratio = Shareholders’ EquityTotal Liabilities
Return on Equity (ROE)
ROE = Shareholders’ EquityNet Income
Earnings Per Share (EPS)
EPS = Average Outstanding SharesNet Income−Dividends on Preferred Stock
Price-to-Earnings Ratio (P/E Ratio)
P/E Ratio = Earnings per ShareMarket Value per Share
Annual Depreciation Expense
Annual Depreciation = Estimated Remaining LifeCost−Salvage Value
Book Value of Building
Book Value = (Annual Depreciation×Remaining Life) + Salvage Value
Capital Cost Allowance (CCA)
First Year: CCA = 2(UCC×Rate) <br></br> Thereafter: CCA = UCC×Rate
Cost of Goods Sold (COGS)
COGS = Beginning Inventory + Purchases−Ending Inventory
Unit Entitlement
Unit Entitlement = Total Strata Lot AreaIndividual Strata Lot Area
Monthly Share of Common Expenses
Monthly Share = 12Annual Common Expenses×Unit Entitlement
Loan-to-Value Ratio (LTV)
LTV = Appraised Property ValueLoan Amount×100
Total Current Assets
Total Current Assets = Cash + Accounts Receivable + Inventory
Total Non-Current Assets
Total Non - Current Assets = Total Assets−Total Current Assets
Total Shareholders’ Equity
Total Shareholders’ Equity = Total Liabilities and Shareholders’ Equity−Total Liabilities
Total Liabilities and Shareholders’ Equity
Total Liabilities and Shareholders’ Equity = Total Assets
Purchase Price of Building
Purchase Price = (Annual Depreciation×Economic Life) + Salvage Value
Remaining Depreciable Base or UCC
UCCend of year = UCCbeginning of year + Additions−Disposals−CCA deduction for the year
