Ratios and calculations financial analysis Flashcards
Net working capital
(Current assets - excess cash) - (current liabilities - current debt)
Net non-current op. assets
non-cur. op. assets(incl. Deffered tax assets and derivatives) - non-cur., non-interest-bearing op. liabilities.(incl. Deferred tax liabilities and derivatives)
NIPAT
investment and interest income * (1-TR)
Interest expense after tax
interest expense * (1-TR)
NOPAT
P/L + Interest after tax - NIPAT
Financial leverage gain
(ROI - (interest exp after tax/debt)) * debt/equity
ROE (general)
Profit or loss / equity
ROA (return on assets)
profit or loss / total assets
Equity multiplier
total assets / equity
Profit margin
profit or loss / revenue
Asset turnover
revenue / assets
ROI (alterntative dupont)
NOPAT / net operating assets * w1 + NIPAT / non-operating investments *w2 = return on net op. assets *w1 + return on non operating investments * w2
NOPAT margin
NOPAT / revenue
Operating asset turnover(NOA turnover)
revenue / net operating assets
Return on net op. assets
NOPAT / net operating assets = NOPAT margin * NOA turnover
Return on non op. inv.
NIPAT / non operating investments
Receivables turnover
Revenue / Accounts receivable
Inventories or payables turnover
Cost of sales or materials / inventories or payables
Days’ receivables/payables/inventories
operating days in a year / turnover ratio
ROE (alternative dupont)
ROI + (ROI - (interest exp after tax/debt)) * debt/equity = ROI + spread * leverage
ROE (traditional dupont)
net profit margin * asset turnover * equitymultiplier
= net profit margin * asset turnover * assets/equity
FCFDE
P/L + interest expense after tax - Δ invested capital
Block 1 and 2 DCF value
Vdcf = SOM(t=1>T) (FCFE)/(1+r)^t
FCFE
FCFDE - interest expense after tax + Δ debt
FCF from operations - interest expense after tax + NIPAT - ΔNOI + ΔDebt
=
P/L - Δ Invested capital + Δ debt
Block 1 and 2 value AP
Vap = BV0 + SOM(t=1>T) (p/l - r * BVt-1)/(1+r)^t
Block 1 and 2 value APG
Vapg = p/lt1/r + 1/rSOM(t=2>T) (ΔP/L - rΔequityt-1)/(1+r)^(t-1)
TV DCF scenario 1
BVET/(1+r)^T
TV DCF scenario 2
TV = FCFET/(r*(1+r)^T)
TV DCF scenario 3
((1+g)FCFET)/((r-g)(1+r)^T)
TV AP scenario 1
TV = 0
TV AP scenario 2
TV = APT/(r*(1+r)^T)
TV AP scenario 3
TV = ((1+g)APT)/((r-g)(1+r)^T)
TV APG scenario 1
(-1 * APT) / (r* (1+r)^T)
TV APG scenario 2
0
TV APG scenario 3
(gAPT)/(r(r-g)*(1+r)^(T-1))
beta of equity
βE = (1+((1-T)D-NOI)/EβNOA + NOI/EβNOI - ((1-t)D/E * βD
CAPM
r = rf + β * ERP
Cash conversion cycle
Days’ Inventories + Days’ Receivables - Days’ Payables (time from paying supplier until receiving money from customer)
sustainable growth rate
ROE * (1 - payout ratio)
Financial leverage
Debt/equity
Financial spread
Return on business assets - effective interest rate after tax = ROI - (interest after tax / debt) (as in the class formula
return on business assets when using alternative dupont
(NIPAT + NOPAT) / ( net working capital + net non current operating assets + investment assets)
MV tax shield - shortcut
MV TS = t * BV Debt
MV tax shield - actual
(sum of discounted products of tax rates and interest expenses for projection years)+ TV = (t(1+g)IT)/((r-g)*(1+r)^T)
