Formulas Flashcards
Assets
Current assets + long-term assets
Current assets
Cash + accounts receivable + inventories
Liabilities
Current liabilities + long-term liabilities
Stockholders equity
Common stock + retained earnings
Book value of equity
Total assets - total liabilities
Market capitalization
Price of share x shares outstanding
Market to book ratio (P/B)
Market cap / book value of equity
Debt to equity ratio (D/E)
Total liabilities / stockholders equity
Current ratio
Total current assets / total current liabilities (1.5-2)
Quick ratio (acid test)
(Total current assets - inventories) / total current liabilities (0.75-1.25)
Cash ratio
Cash / total current liabilities
Enterprise value
Market cap. + debts - cash
Net income
Revenues - expenses
Gross profit
Net sales - COGS
Operating expenses
Selling general and administrative expenses + R&D + depreciation and amortisation
EBITDA
Interest + tax + depreciation + amortisation + net income
Operating income
Gross profit - operating expenses
Depreciation (straight-line method)
Price of asset / # of years in the useful life of the asset
Net book value
Gross book value - accumulated depreciation
Earnings per share (EPS)
Net income / shares outstanding
Gross margin
Gross profit / net sales (%)
Operating margin
Operating income / net sales (%)
Net profit margin
Net income / net sales (%)
ROE
Net income / equity
ROA
Net income / total assets
Accounts receivable days
Accounts receivable / average daily sales
Inventory turnover
COGS / inventory
Asset turnover ratio
Net sales / total assets
Asset turnover & ROA
ROA = asset turnover x net profit margin
Interest coverage ratio
EBIT / interest expenses
DuPont identity
ROE = Net profit margin x asset turnover x equity multiplier
Equity multiplier
Total assets / stockholders equity
Price to earnings (P/E)
Market cap / net income
Share price / EPS
Cash from Operating activities
Net income + D&A - accounts receivable + accounts payable - inventories
Cash from Investment activities
Cash from operating activities - CAPEX +/- buying or selling of marketable securities
Change in cash of Finance activities
Cash from investment activities - payments of dividends + changes in borrowings
Payout ratio
Total dividends / net income
Variable costs
Total quantity of output x variable cost per unit of outputs
Breakeven analysis (BEP)
Fixed costs / (price per unit - variable cost per unit)
Net present value (NPV)
Cash flow / (1+i)^t - inicial investment
Payback period
Cost of investment / average annual cashflow
Net working capital
Current assets - current liabilities
Profit
Revenue - costs
