Module 4 Flashcards
Net Operating Profit After Tax (NOPAT)
Net Operating Profit Before Tax - Tax On Operating Profit
OR
Net Income + Net Nonoperating Expense (NNE)
Tax On Operating Profit
Tax Expense + (Pretax Net Nonoperating Expense x Statutory Tax Rate)
Net Nonoperating Obligations (NNO)
Nonoperating Liabilities - Nonoperating Assets
Return on Net Operating Assets (RNOA)
Net Operating Profit After Tax (NOPAT) / Average Net Operating Assets (NOA)
Net Operating Assets
Operating Assets - Operating Liabilities
Return on Assets (ROA)
Net Income / Average Total Assets
OR
Profit Margin x Asset Turnover
Financial Leverage
Average Total Assets / Average Stockholders’ Equity
Return on Equity (ROE)
Net Income / Average Stockholders’ Equity
OR
Return on Assets x Financial Leverage
OR
Operating Return + Nonoperating Return
Current Ratio
Current Assets / Current Liabilities
Times Interest Earned
Earnings before interest and taxes (EBIT) / Interest expense, gross
Quick Ratio
(Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Liabilities-to-Equity Ratio
Total Liabilities / Stockholders’ Equity
Earnings Before Interest and Taxes (EBIT)
Net Income + Taxes + Interest Expense
Net Operating Working Capital (NOWC)
Current Operating Assets - Current Operating Liabilities
Net Operating Profit Margin (NOPM)
NOPAT / Sales
