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afm 212 > Formulas > Flashcards

Formulas Flashcards

1
Q

ROE

A

Net income/average stockholders equity

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2
Q

ROE for companies with noncontrolling interest

A

net income attributable to company shareholders/average equity attributable to company shareholders

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3
Q

Dupont analysis formula for ROE

A

(net income/average total assets)*(average total assets/average stockholders equity)

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4
Q

ROE in terms of operating focus

A

operating return + nonoperating return

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5
Q

ROA

A

net income/average total assets

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6
Q

RNOA

A

net operating profit after tax/average net operating assets

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7
Q

net operating assets

A

operating assets-operating liabilities

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8
Q

whats included in operating assets

A

everything except for cash, cash equivalents, short term and long term investments, discontinued

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9
Q

whats included in operating liabilities

A

everything except for long term debt short term borrowing, dividends payable, current and noncurrent lease liabilities, discontinued, interest payable

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10
Q

adjusted ROA

A

(net income+(net interest *(1-tax)))/average total assets

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11
Q

gross profit margin

A

gross profit/sales

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12
Q

operating expense margin

A

general operating cost/sales

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13
Q

asset turnover

A

sales/total average assets

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14
Q

AR turnover

A

sales/average AR

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15
Q

DSO

A

365/AR turnover

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16
Q

Inventory turnover

A

COGS/average inventory

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17
Q

ap turnover

A

COGS/average ap

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18
Q

DIO

A

365/inventory turnover

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19
Q

DPO

A

365/ap turnover

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20
Q

CCC

A

DIO+DSO-DPO

21
Q

ppe turnover

A

sales/average ppe

22
Q

financial leverage

A

average total assets/average shareholders equity

23
Q

total liabilities to equity

A

total liabilities/total equity

24
Q

times interest earned

A

EBIT/gross interest expense

25
Q

which are profitability ratios

A

gross profit margin, operating expense margin, profit margin

26
Q

Productivity

A

AR turnover, Inventory turnover, SP turnover, CCC PPE turnover

27
Q

NOPAT

A

NOBT-tax on operating profit

28
Q

NOPBT

A

sales-operating expense

29
Q

operating expenses include

A

COGS, SG&A, R&D, Impairment (goodwill), other expense , gain/loss

30
Q

tax on operating profit

A

tax expense+pretax net nonoperating*tax rate

31
Q

expected credit loss

A

chance of deafult*loss given deafult

32
Q

EBITDA coverage ratio

A

(EBIT+depreciation+amortization)/gross interest expense

33
Q

cash from operation to toatl debt

A

cash from operations/(short term and long term debt)

34
Q

Free operating cash flow to total debt

A

(cash from operations-CAPEX)/short term+long term debt)

35
Q

current ratio

A

current assets/current liabilities

36
Q

quick ratio

A

(cash +marketable securities+ar)/current liabilities

37
Q

average rate of allowance to gross AR

A

allowance for doubtful accounts/gross AR

38
Q

accounts recievable

A

days sales outstanding*sales per day

39
Q

LIFO to FIFO inventory

A

LIFO inventory+LIFO reserve

40
Q

LIFO cogs to FIFO cogs

A

FIFOCOGS=LIFO COGS-Increase in LIFO reserve

41
Q

change in cash

A

change in DIO*(DOGS/365)

42
Q

alternate ap turnover method

A

purchases/average ap

43
Q

purchases

A

ending inventory-beginning inventory+COGS

44
Q

straight line depreciation expense

A

(acquisition cost-residual value)/useful life

45
Q

units of production depreciation method

A

depreciation rate per unit=(cost-residual)/life in units
Depreciation expense=depreciation rate per unit*#of units produced for the year

46
Q

declining balance depreciation expense

A

carrying amount*2/useful life in years

47
Q

gain/loss on sales

A

proceeds from sale-netbook value of asset sold

48
Q

useful life

A

average depreciable asset cost/depreciation expense

49
Q

percent used up

A

accumulated depreciation/depreciable asset cost

afm 212 (2 decks)

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