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RETS > Financial Calcs Formulas > Flashcards

Financial Calcs Formulas Flashcards

1
Q

Capital Cost Allowance (CCA)

A

CCA = UCC * CCA Rate * 50% (in the first year)

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2
Q

Depreciation Expense

A

Depreciation Expense = (Cost - Salvage Value) / Useful Life

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3
Q

Cost of Goods Sold (COGS)

A

COGS = Beginning Inventory + Purchases - Ending Inventory

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4
Q

Net Income

A

Net Income = Revenue - Expenses

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5
Q

Shareholders’ Equity

A

Shareholders’ Equity = Total Assets - Total Liabilities

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6
Q

Gross Rent Multiplier (GRM)

A

GRM = Property Price / Gross Rental Income

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7
Q

Return on Investment (ROI)

A

ROI = (Net Profit / Cost of Investment) * 100

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8
Q

Debt Service Coverage Ratio (DSCR)

A

DSCR = Net Operating Income / Total Debt Service

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9
Q

Operating Expense Ratio (OER)

A

OER = Operating Expenses / Gross Operating Income

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10
Q

Cash on Cash Return

A

Annual Pre - Tax Cash Flow / Total Cash Invested

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11
Q

Amortization

A

Amortization Schedule Calculation

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12
Q

Annual Percentage Rate (APR)

A

APR = [(Fees + Interest) / Principal] / n * 365

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13
Q

Value of Cash

A

Cash = Total Current Assets - Merchandise Inventory - Accounts Receivable

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14
Q

Value of Machinery

A

Machinery = Total Non - Current Assets + Accumulated Depreciation - Land

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15
Q

Total Non-Current Assets

A

Total Non - Current Assets = Total Assets - Total Current Assets

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16
Q

Share Capital

A

Share Capital = Total Shareholders’ Equity - Retained Earnings

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17
Q

Total Shareholders’ Equity

A

Total Shareholders’ Equity = Total Liabilities and Shareholders’ Equity - Total Liabilities

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18
Q

Total Liabilities and Shareholders’ Equity

A

Total Liabilities and Shareholders’ Equity = Total Assets

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19
Q

Income Tax Expense

A

Income Tax Expense = Revenue - (Interest Payments + Operating Expenses + Cost of Goods Sold) - After Tax Net Income

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20
Q

Building’s Capital Cost Allowance (First Year)

A

CCA = (CCA Rate * ((Annual Depreciation Expense * Estimated Economic Life) + Salvage Value)) * 0.5

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21
Q

UCC (Undepreciated Capital Cost)

A

UCC = Cost of Property - Cumulative CCA Claimed

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22
Q

Revenue

A

Revenue = Price * Quantity Sold

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23
Q

Operating Expenses

A

Operating Expenses = Salaries + Rent + Utilities + Office Supplies + Depreciation + Miscellaneous Expenses

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24
Q

Net Operating Income (NOI)

A

NOI = Gross Operating Income - Operating Expenses

25
Q

Total Debt Service

A

Total Debt Service = Interest Payments + Principal Repayment

26
Q

Gross Operating Income

A

Gross Operating Income = Gross Rental Income + Other Income

27
Q

Principal

A

No specific formula, as Principal is the initial amount.

28
Q

Annual Pre-Tax Cash Flow

A

Annual Pre - Tax Cash Flow = NOI - Debt Service

29
Q

Total Cash Invested

A

Total Cash Invested = Down Payment + Closing Costs + Renovation Costs + Other Initial Costs

30
Q

Debt Yield

A

Debt Yield = Net Operating Income / Loan Amount

31
Q

Break-Even Occupancy

A

Break - Even Occupancy = (Operating Expenses + Debt Service) / Gross Potential Rent

32
Q

Gross Rent Multiplier (GRM)

A

GRM = Property Price / Gross Annual Rental Income

33
Q

Effective Gross Income (EGI)

A

EGI = Gross Potential Rent - Vacancy and Credit Losses + Other Income

34
Q

Total Debt Service

A

Total Debt Service = Principal + Interest Payments

35
Q

Loan-to-Value Ratio (LTV)

A

LTV = Loan Amount / Appraised Property Value

36
Q

Loan-to-Value Ratio (LTV)

A

LTV = Appraised Value of the PropertyLoan Amount​

37
Q

Cost of Goods Sold (COGS)

A

COGS = Beginning Inventory + Purchases−Ending Inventory

38
Q

Income Tax Expense

A

Income Tax Expense = Revenue−(Interest Expense + Operating Expense + Depreciation + Other Expenses)

39
Q

Net Present Value (NPV)

A

NPV = ∑(1 + r)tRt​​−C0​

40
Q

Internal Rate of Return (IRR)

A

0 = ∑(1 + IRR)tRt​​−C0​

41
Q

Current Ratio

A

Current Ratio = Current LiabilitiesCurrent Assets​

42
Q

Quick Ratio (Acid-Test Ratio)

A

Quick Ratio = Current LiabilitiesCurrent Assets−Inventory​

43
Q

Debt-to-Equity Ratio

A

Debt - to - Equity Ratio = Shareholders’ EquityTotal Liabilities​

44
Q

Return on Equity (ROE)

A

ROE = Shareholders’ EquityNet Income​

45
Q

Earnings Per Share (EPS)

A

EPS = Average Outstanding SharesNet Income−Dividends on Preferred Stock​

46
Q

Price-to-Earnings Ratio (P/E Ratio)

A

P/E Ratio = Earnings per ShareMarket Value per Share​

47
Q

Annual Depreciation Expense

A

Annual Depreciation = Estimated Remaining LifeCost−Salvage Value​

48
Q

Book Value of Building

A

Book Value = (Annual Depreciation×Remaining Life) + Salvage Value

49
Q

Capital Cost Allowance (CCA)

A

First Year: CCA = 2(UCC×Rate)​ <br></br> Thereafter: CCA = UCC×Rate

50
Q

Cost of Goods Sold (COGS)

A

COGS = Beginning Inventory + Purchases−Ending Inventory

51
Q

Unit Entitlement

A

Unit Entitlement = Total Strata Lot AreaIndividual Strata Lot Area​

52
Q

Monthly Share of Common Expenses

A

Monthly Share = 12Annual Common Expenses×Unit Entitlement​

53
Q

Loan-to-Value Ratio (LTV)

A

LTV = Appraised Property ValueLoan Amount​×100

54
Q

Total Current Assets

A

Total Current Assets = Cash + Accounts Receivable + Inventory

55
Q

Total Non-Current Assets

A

Total Non - Current Assets = Total Assets−Total Current Assets

56
Q

Total Shareholders’ Equity

A

Total Shareholders’ Equity = Total Liabilities and Shareholders’ Equity−Total Liabilities

57
Q

Total Liabilities and Shareholders’ Equity

A

Total Liabilities and Shareholders’ Equity = Total Assets

58
Q

Purchase Price of Building

A

Purchase Price = (Annual Depreciation×Economic Life) + Salvage Value

59
Q

Remaining Depreciable Base or UCC

A

UCCend of year​ = UCCbeginning of year​ + Additions−Disposals−CCA deduction for the year

RETS (18 decks)

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