Key Formulas Flashcards
1
Q
Working Capital
A
CA - CL
2
Q
Current Ratio:
A
CA / CL
3
Q
Quick ratio:
A
(Cash + Equivalents + AR) / CL
4
Q
Book value:
A
Common shareholder equity / number of common shares outstanding
5
Q
Tangible book value
A
TA - TL - Intangible Assets - Goodwill
6
Q
Days Sales Outstanding
A
(AR / Total Credit Sales) x 365
7
Q
Interest coverage ratio
A
EBITDA / Interest Expense
8
Q
AR Turnover
A
Sales (on credit) / Average AR
9
Q
Inventory Turnover
A
COGS / Average Inventory
10
Q
Basic EPS
A
Earnings Available to Common / Avg. Common Shares Outstanding
11
Q
ROE
A
Earnings to Common / Avg. Common Shareholder Equity
12
Q
Return on Assets
A
Net Income / Average Assets
13
Q
PEG Ratio
A
P/E Ratio / Annual Growth Rate
14
Q
Dividend yield
A
Annual dividend / market price/share
15
Q
CAPM
A
Rf + b(ERM - rf)
16
Q
Risk Premium
A
ERM - rf
17
Q
Cost of Equity (Gordon Growth)
A
D1 / P0 + g
