Key Financial Metrics and Ratios

Question 1

Enterprise Value =

Answer 1

Equity Value + Total Debt + Preferred Stock + Noncontrolling Interest - Cash and Cash Equivalents

Question 2

Gross Profit Margin =

Answer 2

Gross Profit (Sales - COGS) / Sales

Question 3

EBITDA Margin =

Answer 3

EBITDA / Sales

Question 4

EBIT Margin =

Answer 4

EBIT / Sales

Question 5

Net Income Margin =

Answer 5

Net Income / Sales

Question 6

Compound Annual Growth (CAGR) =

Answer 6

(Ending Value / Beginning Value) ^ (1 / Ending Year - Beginning Year) - 1

Question 7

Return on Invested Capital =

Answer 7

EBIT / Average Net Debt + Equity

Question 8

Return on Equity =

Answer 8

Net Income / Average Shareholders’ Equity

Question 9

Return on Assets =

Answer 9

Net Income / Average Total Assets

Question 10

Implied Dividend Yield =

Answer 10

Most Recent Quarterly Dividend Per Share * 4 / Current Share Price

Question 11

Leverage =

Answer 11

Debt / EBITDA

Question 12

Debt-to-Total Capitalization =

Answer 12

Debt / (Debt + Preferred Stock + Noncontrolling Interest + Equity)

Question 13

Interest Coverage Ratio =

Answer 13

EBITDA, (EBITDA - Capex), or EBIT / Interest Expense

Question 14

LTM =

Answer 14

Prior Fiscal Year + Current Stub - Prior Stub

Question 15

Next Calendar (CY) Sales =

Answer 15

[(Month #)(FYA Sales)/12] + [(12-Month #)(NFY Sales)/12]