Formulas Flashcards
What is formula for Return on Equity?
= Net profit / Equity
What is formula for Return on Assets?
= Profit before financial expenses / Total assets
What is formula for Return on Operating Net Assets?
= Operating profit / Operating net assets
What is formula for Return on capital employed?
= Profit before financial expenses / Capital employed
What is formula for Capital Employed?
= Equity + Interest-bearing debt
What is formula for Debt equity ratio?
= Total liabilities / total equity
What is formula for Dib equity ratio?
= Interest-bearing debt / total equity
What is formula for Net debt equity ratio?
= (Interest-bearing debt – financial assets) / total equity
What is formula for Interest coverage ratio?
= Profit before interest expenses / interest expenses
What is formula for EBITDA coverage?
= EBITDA / interest expenses
What is the DuPont formula for ROA?
(Profit before financial expenses / Sales) * (Sales / Total assets)
What is the DuPont formula for ROCE?
(Profit before financial expenses / Sales) * (Sales / Capital employed)
What is the DuPont formula for RONA?
(Operating profit / Sales) * (Sales / Operating net assets)
Operating net assets = Total assets – Dnib – Financial assets
What is formula for Operating net assets?
Operating net assets = Total assets – Dnib – Financial assets
What is the Solvency ratio?
Solvency = Equity/Assets
What are the Debt-to-equity ratios?
D/E , Dib/E , ND/E
Dib = Interest bearing debt ND = Net debt = Lib - (Cash + marketable securities)
What is Net Debt?
Net Debt = Lib - (Cash + marketable securities)
What is the formula for Current ratio?
= Current assets / Current liabilities
What is the formula for Quick ratio?
= (Current assets - Inventory) / Current liabilities
What is the formula for Cash availability?
= (Cash + Marketable securities) / Sales
What is the formula for Capex ratio?
= Cash flow from operations / Net investments
What is the formula for Defensive interval?
= ((Liquidt assets + accounts receivable) / Projected expenditures) * 365
What is the formula for Number of days in inventory?
(Average inventory / COGS) * 365
What is the formula for Number of credit days customers?
(Average accounts receivables / Sales) * 365
What is the formula for Number of credit days suppliers?
(Average accounts payables / Purchases) * 365
Purchases = CGS + Inventory CB – Inventory OB
What is the ROA leverage formula?
ROE = (1-t) * [ROA + (ROA - COD) * D/E]
Which part of the leverage formula (ROA) shows return from capital financed by creditors?
(ROA - COD) * D/E (in other words: “spread” * leverage)
Which part of the leverage formula (ROA) shows return from own capital?
ROA
Which part of the leverage formula (ROA) shows operating risk?
ROA
What is the formula for purchases?
Purchases = CGS + Inventory CB – Inventory OB
Which part of the leverage formula (ROA) shows financial risk?
D/E
What is the ROCE leverage formula?
ROE = (1-t) * [ROCE + (ROCE - CODib) * Dib/E]
What is the growth formula?
∆E / E = ROE – (DIV / E) + (Newly issued shares / E)
What is the interest coverage ratio?
Interest coverage ratio = Profit before interest expenses / interest expenses
What is EBITDA coverage?
EBITDA coverage = EBITDA / interest expenses
What is the Cash Conversion Cycle?
CCC = Number of days in inventory + number of credit days customers - number of credit days suppliers
What is the ROCE DuPont identity?
ROCE = PM * TOCE
What is TOCE?
TOCE = Turnover of Capital Employed = Sales/CE
CE = Equity + Lib = Assets - Lnib - financial assets
What is the earnings ratio?
P/E = Share price at time t / Earnings in period t+1
What is the market to book ratio?
M/B = Stock market value of equity at time t / book value of equity at time t
What is residual income (RI)?
RI = EBIT - (cost of capital*capital invested)
Cost of capital = WACC
What is Economic Value Added (EVA)?
EVA = NOPAT - (cost of capital * capital invested)
NOPAT = Net operating profit - Tax
Note: EVA is a modern version of RI
What is the WACC formula?
WACC = Dib / (E + Dib) * ( 1 –T ) * CODib + E / (D + E) * re
What is the alternate EVA formula?
EVA = (ROCE (1–T) – WACC) * CE
What is working capital (WC)?
WC = Cash + accounts receivable + inventory - accounts payable
What is the formula for COD?
= Interest expense / All debt = Interest expense / Liabilities
What is the formula for CODib?
= Interest expense / Interest bearing debt
What is the formula for COND?
= Fin expense – Fin income / ND (i.e. Dib – Fin assets)
In other words, COND = Net financial expenses / Net debt
What is the formula for NOPAT?
NOPAT = Net operating profit - Tax
Note: EVA is a modern version of RI
What is the formula for projected expenditures?
= net expenses (i.e. cost of goods sold + sales and administrative costs + other operating expenses - other operating revenue) minus depreciation and amortization
