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CFA Level One > Formulas > Flashcards

Formulas Flashcards

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CFA flashcards
1
Q

Receivables Turnover

A

annual sales
= —————————-
average receivables

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2
Q

Days of Sales Outstanding

A

365
= —————————–
receivables turnover

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3
Q

Inventory Turnover

A

cost of goods sold
= ——————————–
average inventory

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4
Q

Days of Inventory On Hand

A

365
= —————————–
inventory turnover

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5
Q

Payables Turnover

A

purchases
= ——————————
average trade payables

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6
Q

Number of Days of Payables

A

365
= —————————
payables turnover ratio

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7
Q

Total Asset Turnover

A

revenue
= ————————-
average total assets

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8
Q

Fixed Asset Turnover

A

revenue
= ———————————–
average net fixed assets

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9
Q

Working Capital Turnover

A

revenue
= ——————————–
average working capital

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10
Q

Current Ratio

A

current assets
= ———————————–
current liabilities

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11
Q

Quick Ratio

A

cash + marketable securities + receivables
= ————————————————————————
current liabilities

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12
Q

Cash Ratio

A

cash + marketable securities
= ——————————————————-
current liabilities

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13
Q

Defensive Interval

A

cash + marketable securities + receivables
= ——————————————————————–
average daily expenditures

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14
Q

Cash Conversion Cycle

A

(days sales outstanding) + (days of inventory on hand) - (number of days of payable)

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15
Q

Debt-to-Equity

A

total debt
= ———————————
total shareholders’ equity

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16
Q

Debt-to-Capital

A

total debt
= ——————————————————–
total debt + total shareholders’ equity

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17
Q

Debt-to-Assets

A

total debt
= ——————————–
total assets

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18
Q

Financial Leverage

A

average total assets
= ——————————————–
average total equity

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19
Q

Interest Coverage

A

earning before interest and taxes
= ————————————————————–
interest payments

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20
Q

Fixed Charge Coverage

A

earnings before interest and taxes + lease payments
= ——————————————————————————
interest payments + lease payments

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21
Q

Net Profit Margin

A

net income
= ——————–
revenue

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22
Q

Gross Profit Margin

A

gross profit
= —————————–
revenue

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23
Q

Operating Profit Margin

A

operating income
= ——————————–
revenue

= EBIT
———————–
revenue

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24
Q

Pretax Margin

A

EBT
= ——————–
revenue

25
Q

Return on Assets

A

net income + interest expense (1- tax rate)
= ——————————————————————-
average total assets

26
Q

Operating Return on Assets

A

operating income
= ————————
average total assets

   EBIT = -------------------   average total assets
27
Q

Return on Total Capital

A

EBIT
= ——————————–
average total capital

28
Q

Return on Equity

A

net income
= ————————
average total equity

29
Q

Return on Common Equity

A

net income - preferred dividends
= ——————————————————
average common equity

30
Q

FCFF

A

xxx

31
Q

FCFE

A

cash slows from operations - fixed capital investment + net borrowing

32
Q

Common-size Income Statement Ratios

A

income statement account
= ————————————————-
sales

33
Q

Common-size Balance Sheet Ratios

A

balance sheet account
= —————————————————
total assets

34
Q

Common-size Cash Flow Ratios

A

cash flow statement account
= ——————————————————
revenues

35
Q

Original DuPont Equation

A

ROE = (net profit margin) (asset turnover) (leverage ratio)

36
Q

Extended DuPont Equation

A

ROE = (net income/EBT)x(EBT/EBIT)x(EBIT/revenue)(revenue/total assets)x(total assets/total equity)

37
Q

Basic EPS

A

net income - preferred dividends
= —————————————————
weighted ave number of common shares outstanding

38
Q

Diluted EPS

A

[(weighted average shares) + (shares from conversion of conv.pfd. shares) + (shares from conversion of cov. debt) + (shares issuable from stock options)]

39
Q

Coefficients of Variation:

CV Sales

A

std of sales
= ——————————–
mean sales

40
Q

Coefficients of Variation:

CV Operating Income

A

std of operating income
= ——————————————
mean operating income

41
Q

Coefficients of Variation:

CV Net Income

A

std net income
= ———————————
mean net income

42
Q

Ending Inventory

A

= beg inventory + purchases - COGS

43
Q

Straight Line Depreciation

A

[(cost - salvage value)/useful life]

44
Q

DDB Depreciation

A

(2/useful life) x (cost - accumulated depreciation)

45
Q

Units of Production Depreciation

A

[(original cost - salvage value)/ life in output units] x output units in the period

46
Q

Deferred Taxes

A

income tax expense =

(taxes payable) + changeDTL - changeDTA

47
Q

Debt Liabilities

A

interest expense =

mrk rate at issue) x (balance sheet value of liability at the beg of period

48
Q

Cash Flow-to-Revenue

A

CFO
= —————————–
net revenue

49
Q

Cash Return-on-Assets

A

CFO
= —————————–
average total assets

50
Q

Cash Return-on-Equity

A

CFO
= ——————————
average total equity

51
Q

Cash-to-Income

A

CFO
= ————————–
operating income

52
Q

Cash Flow per Share

A

CFO - preferred dividends
= ——————————————————
weighted avg number of common shares

53
Q

Debt Coverage

A

CFO
= ———————
total debt

54
Q

Interest Coverage

A

CFO + interest paid + taxes paid
= ————————————————————–
interest paid

55
Q

Reinvestment

A

CFO
= —————————————-
cash paid for long term assets

56
Q

Debt Payment

A

CFO
= ———————————————
cash long term debt repayment

57
Q

Dividend Payment

A

CFO
= —————————
dividends paid

58
Q

Coverage Ratios: Investing & Financing

A

CFO
= —————————————————————————
cash outflows from investing and financing activities

CFA Level One (12 decks)

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