Financial Statement Formula & Ratio Flashcards
Shares Outstanding
Issued Stock - Treasury Stock
Fully Diluted Share Outstanding
Basic + Warrants + Capital Notes + Convertible Preferred Stock
Market Capitalization
Number of Shares Outstanding x Share Price
Enterprise Value
Market Capitalization + Current Portion of Long Term Debt + Non-Current Portion of Long Term Debt + Book Value of Preferred Stock + Book Value of Minority Interest - Cash and Short Term Investments
Gross Profit
Sales - Cost of Goods Sold
Operating Expense
R&D + SG&A + Rent Expense + Pension and Retirement Expense
Operating Income or Income Before Interest & Taxes (EBIT)
Revenue - COGS - Operating Expense
Income Before Income Tax (EBT)
EBIT - Net Interest Expense
Net Income
Gross Profit - Net Expenses (operating and non-operating including tax)
Net Income Attributable to Equity Holders of the Parent Company
Total Comprehensive Income - Income Attributable to Non-Controlling Interest
Basic EPS
Net Income Attributable to Equity Holders of the Parent Company / Average Basic Outstanding Shares
Diluted EPS
Net Income Attributable to Equity Holders of the Parent Company / Average Fully Diluted Outstanding Shares
Interest Expense
Operating Interest Expense + Non-Operating Interest Expense
Cashflow from Operations
Net Cash Generated from Operations - Income Tax Paid + Interest Received
Net Increase (Decrease) in Cash & Cash Equivalents
Cashflow from Operations + Cashflow from Investing + Cashflow from Financing
Total Current Assets
Sum of All Current Assets
Total Assets
Total Current Asset + Total Non-current Asset
Total Liabilities
Total Current Liability + Total Non-Current Liability or Total Assets - Shareholder Equity
Capital Stock
Number of Shares Issued x Par Value per Share or Common Stock + Preferred Stock
Common Stock
Total Equity - Preferred Stock - Additional Paid-in Capital - Retained Earnings + Treasury Stock
Additional Paid-in Capital
(Issue Price – Par Value) x Shares Outstanding
Retained Earnings
Beginning Retained Earnings + Net Income - Dividends
Shares Outstanding
Issued Stock - Treasury Stock
Net Working Capital (broad)
Current Asset - Current Liabilities
Net Working Capital (for FCF calculation)
Accounts Receivable + Inventory – Accounts Payable
Change in NWC
Current Period NWC - Previous Period NWC
Capital Expenditure
Acquisition of PP&E (found in cashflow statement) or PP&E Current Period - PP&E Previous Period + Depreciation of Current Period
Free Cash Flow to Firm (FCFF)
EBIT(1-Tax Rate) + Depreciation - Capital Expenditure - Increase in NWC (know as invested capital method) or Net Income + Non-cash Expense - Increase in Working Capital - Capital Expenditure
Non-Cash Expense
Depreciation + amortization + stock-based compensation + impairment charges + gains/losses on investments
NOPAT or Net Operating Profit After Tax
EBIT x (1-Tax Rate)
Gross Profit Margin
Gross Profit / Revenue
Operating Margin
EBIT / Revenue
Pretax Margin
EBT / Revenue
Net Profit Margin
Net Income / Revenue
Free Cash Flow Margin
FCF / Revenue
Return on Asset
Net Income / Average Total Asset
Return on Total Asset
EBIT / Average Total Asset
Return on Equity (Generic)
Net Income / Total Shareholder’s Equity
Return on Equity (Du Pont)
Net Profit Margin x Asset Turnover x Equity Multiplier
Asset Turnover
Revenue / Average Total Asset
Equity Multiplier
Total Asset / Total Shareholder’s Equity
Return on Capital Employed
EBIT / (Total Asset - Total Current Liabilities)
Return on Total Capital
EBIT / (Short-Term Debt + Long-Term Debt + Total Shareholder’s Equity)
Total Capital
Short-term Debt + Long-term Debt + Shareholder’s Equity
Dividend Yield
Annualized Dividends Per Share / Stock Price
Earning’s Yield
EPS / Stock Price
Receivables Turnover
Revenue / Average Account Receivables
Inventory Turnover
Revenue / Average Inventory
Fixed Asset Turnover
Revenue / Average PP&E
Working Capital Turnover
Revenue / (Total Current Asset - Total Current Liabilities)
Current Ratio
Total Current Asset / Total Current Liabilities
Quick Ratio
(Total Current Asset - Inventory) / Total Current Liabilities
Cash Ratio
Cash & Cash Equivalent / Total Current Liabilities
Debt to EBITDA Ratio
Debt (Total or Net Debt) / EBITDA
Interest Coverage Ratio
EBIT / Interest Expense
Cashflow to Debt Ratio
Cashflow from Operations / Total Debt
Cash Dividend Coverage Ratio
Cash Dividend / (Net Income - Required Dividend for Preferred Shares)
Debt to Equity Ratio
Debt (Total Debt or Long-term Debt) / Total Shareholder’s Equity
Total Debt to Total Asset Ratio
Total Debt / Total Asset
Price to Earnings Ratio
Stock Price / EPS
PEG Ratio
PE Ratio / EPS Growth Rate
Dividend Yield
Annualized Dividends Per Share / Stock Price
Payout Ratio
Total Cash Dividends Paid / Net Income
EV to EBITDA Ratio
Enterprise Value / EBITDA
Equity Value
Enterprise Value - Debt and Debt Equivalents - Noncontrolling Interest - Preferred Stock + Cash and Cash Equivalents
Weighted Average Cost of Capital
[Equity Proportion x Cost of Equity] + [Debt Proportion x Cost of Debt x (1-Tax Rate)]
Cost of Equity (CAPM)
Risk Free Rate + [Beta x (Excess Market Risk Premium)]
Cost of Debt
[(Risk Free Rate + Credit Risk) x (1 - Tax Rate)] or [Interest Expense Rate*(1- Tax Rate)]
