Fundamental Analysis formula Flashcards
1
Q
Net Worth
A
= Assets - Liabilities
2
Q
Net working capital
A
= curr. assets - curr. liabilities
3
Q
Current Ratio
A
= current assets / curr. liabilities
4
Q
Quick Assets
A
= curr. assets - inventory
5
Q
Quick Ratio (acid test)
A
= (curr. assets - inventory) / curr. liabilities
6
Q
Debt service coverage ratio
A
=operating income / debt service req.
7
Q
Earning p share (EPS)
A
=net earnings / outstanding shares
8
Q
PE ratio
A
= mkt price / EPS
9
Q
yield to worst
A
lower of YTM / YTC
