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Formulas Flashcards

1
Q

Net revenue recognised

A

Credit sales - Return of goods sold

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2
Q

Basic EPS

A

(Net income - Preference dividend) / Weighted average number of shares

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3
Q

Diluted EPS

A

(Net income - Preference dividend + convertible tax) / Weighted average number of shares + issued shares

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4
Q

LIFO Reserve

A

FIFO Inv - LIFO Inv

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5
Q

Retained earnings(FIFO)

A

Retained(LIFO) + LIFO Reserve(1-T)

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6
Q

FIFO COGS

A

LIFO COGS - chng in LIFO reserve

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7
Q

FIFO Net Income

A

LIFO net income + chng LIFO Reserve(1-T)

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8
Q

Net WC

A

CA - CL

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9
Q

Quick ratio

A

(CA - Inv)/CL

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10
Q

Cash ratio

A

(Cash + ST securities)/CL

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11
Q

AR Turnover

A

Credit sales / Average AR

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12
Q

Inventory Turnover

A

COGS / Avg Inventory

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13
Q

No. of Days Rec

A

avg AR * 365 / Sales on credit

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14
Q

No. of Days of Inv

A

Avg Inv * 365 / COGS

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15
Q

No. of Days payable

A

Avg AP * 365 / Purchases

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16
Q

Net Operating Cycle

A

Days of Rec + Days of inv - Days of payable

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17
Q

Rp

A

Dp/Pp

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18
Q

Re

A

Rd + risk - premium

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19
Q

Annualised r

A

(1+r)ˆ(365/p)

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20
Q

Harmonic mean

A

n/Sum(1/Xi)

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21
Q

Ly (finding percentile boundries)

A

(n+1)*percentile/100

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22
Q

Mean-absolute dev

A

E[xi-X]

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23
Q

sˆ2

A

Sum((xi-X)ˆ2)/n-1

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24
Q

S

A

|s|

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25
Q

Coeff. variance

A

s/X

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26
Q

Sharpe ratio

A

(Rp - Rf)/Sp

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27
Q

Leptokurtic

A

More peaked, kurtosis > 3

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28
Q

Platykurtic

A

Kurtosis < 3

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29
Q

Cov(x,y)

A

Sum((xi-X)(yi-y))/n-1

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30
Q

Corr(x,y)

A

Cov(x,y) / (sd(x)*sd(y))

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31
Q

Expected value of sqr deviations Var(X)

A

Sum(P(Xi) * (Xi - E(x)))

32
Q

Z-score

33
Q

Current yield

A

Annual coupon / Bond Price

34
Q

Bond price b/ween coupon

A

Flat price + PMT * t/T

35
Q

Converting APR

A

(1 + APRm/m)ˆm = (1+ APRn/n)ˆn

36
Q

G-spread

A

Yield - gvmt

37
Q

I-spread

A

Yield - interbank swap rate

38
Q

Z-spread

A

Constant spread - spot rate

39
Q

Par rate

A

(1-DFn)/Sum(DFi)

40
Q

AyBy meaning

A

B-year bond purchased in A years

41
Q

AyBy calculation

A

((1+(A+B)y)^(A+B)/(1+Ay)^A)ˆ1/B - 1

42
Q

Contribution Margin

A

Price of unit - Variable costs

43
Q

Degree of operating leverage

A

%chng in operating profit / %chng in Sales

44
Q

(Whatever) Margin

A

X / Revenue

45
Q

Gross Profit

A

Revenue - Cost of Sales

46
Q

EBITDA

A

Gross Profit - Operating expenses

47
Q

Cash conversion cycle

A

days of sales outstanding + days of inv outst - days of payable outst

48
Q

Degree of fin leverage

A

% chng Net Income / % chng Operating income

49
Q

Net margin

A

Tax burden * Int burden * Operating Margin

50
Q

ROE

A

Net Margin * Asset turnover * Equity Multiplier

51
Q

HHI

A

Sum((segment %)ˆ2)
1500-2500 moderate

52
Q

FCFE

A

CFO - FC Inv + Net borrowing

53
Q

V0 of company

A

Sum(FCFEt/(1+r)ˆt)

54
Q

Pref stock V0

55
Q

Growth of company

A

retention rate x ROE

56
Q

EV

A

MV + preferred stock + Debt - Cash and ST Inv

57
Q

Asset-based approach

A

MV of assets

58
Q

Money weighted return

59
Q

Var of portfolio

A

Var Sum(wi*Ri)

60
Q

SD of portfolio

A

((w1s1)ˆ2 + (w2s2)ˆ2 + 2w1w2cov(R1,R2))ˆ(1/2)

61
Q

Utility

A

E(r) - 1/2Asˆ2

62
Q

sd(p)

A

(1 - w1)sd(i)

63
Q

CAL

A

Rf + (E(Ri) - Rf)*sd(p)/sd(i)

uses asset return and sd

64
Q

CML

A

Rf + (E(Rm) - Rf)*sd(p)/sd(m)

uses market return and sd

65
Q

SML

A

CAPM
Bi = P(i,m) * sd(i) / sd(m)

66
Q

Sharpe ratio

A

(Rp-Rf)/sd(p)

67
Q

Treynor ratio

A

(Rp - Rf)/Bp

68
Q

Jensen’s Alpha

69
Q

MOIC

A

(realised + unrealised value of inv) / Total invested capital

70
Q

R leveraged (derivatives)

A

r + Vborrowed*(r-rborrowed)/Vinvestment

71
Q

GP return

A

P1mgmnt fee + max[0 , (P1-P0)performance fee]

72
Q

Ri (fund)

A

(P1 - P0 - Rgp)/P0

73
Q

GP return with hurdle

A

P1rm + max[0, (P1(1-Rm) - P0(1+hurdle)]performance

74
Q

Forward price

A

So*(1+r)ˆT

75
Q

Which one is daily settled?

76
Q

Money created

A

New deposit / Reserve requirement

77
Q

Money multiplier

A

1 / Reserve req

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