Midterm I Formulas Flashcards
1
Q
Net Income (NI) = ?
A
= Earnings before interest and taxes (EBIT) - Interest - Taxes
2
Q
Earning before interest and taxes (EBIT) = ?
A
= Sales (S) - Costs (C) - Depreciation
3
Q
Taxes = ?
A
= (Earning before interest and taxes (EBIT) - Interest) x Tax rate
4
Q
Net new borrowing = ?
A
= Long term debt (beginning) - Long term debt (ending)
5
Q
Total equity (TE) = ?
A
= Total assets (TA) - Total debt (TD)
6
Q
Earnings per share (EPS) = ?
A
= Net income (NI) / Shares outstanding
7
Q
Net working capital (NWC) = ?
A
= Current assets (CA) - Current liabilities (CL)
