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    Exam 1 Formula Sheet

    Uploaded by

    Yingfan
    This document contains formulas for calculating various financial ratios used to analyze the performance and financial health of a company. It includes ratios related to liquidity (current ratio, quick ratio, cash ratio), leverage (debt-to-equity ratio, times interest earned), asset management (inventory turnover, receivables turnover, payables turnover, fixed asset turnover, total asset turnover), profitability (net profit margin, return on assets, return on equity), valuation (price-earnings ratio, market-to-book ratio), and cash flow (dividend payout ratio, retention ratio, internal growth rate, sustainable growth rate).

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Exam 1 Formula Sheet

    Uploaded by

    Yingfan
    13 views3 pages
    This document contains formulas for calculating various financial ratios used to analyze the performance and financial health of a company. It includes ratios related to liquidity (current ratio, quick ratio, cash ratio), leverage (debt-to-equity ratio, times interest earned), asset management (inventory turnover, receivables turnover, payables turnover, fixed asset turnover, total asset turnover), profitability (net profit margin, return on assets, return on equity), valuation (price-earnings ratio, market-to-book ratio), and cash flow (dividend payout ratio, retention ratio, internal growth rate, sustainable growth rate).

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    This document contains formulas for calculating various financial ratios used to analyze the performance and financial health of a company. It includes ratios related to liquidity (current ratio, quick ratio, cash ratio), leverage (debt-to-equity ratio, times interest earned), asset management (inventory turnover, receivables turnover, payables turnover, fixed asset turnover, total asset turnover), profitability (net profit margin, return on assets, return on equity), valuation (price-earnings ratio, market-to-book ratio), and cash flow (dividend payout ratio, retention ratio, internal growth rate, sustainable growth rate).

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views3 pages

    Exam 1 Formula Sheet

    Uploaded by

    Yingfan
    This document contains formulas for calculating various financial ratios used to analyze the performance and financial health of a company. It includes ratios related to liquidity (current ratio, quick ratio, cash ratio), leverage (debt-to-equity ratio, times interest earned), asset management (inventory turnover, receivables turnover, payables turnover, fixed asset turnover, total asset turnover), profitability (net profit margin, return on assets, return on equity), valuation (price-earnings ratio, market-to-book ratio), and cash flow (dividend payout ratio, retention ratio, internal growth rate, sustainable growth rate).

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    FIN 357 Exam 1 Formula Sheet Print your name here:

    Current assets
    Current ratio =
    Current liabilities
    Current assets – Inventory
    Quick ratio =
    Current liabilities
    Cash
    Cash ratio =
    Current liabilities
    Net working capital
    Net working capital to total assets ratio =
    Total assets
    Current assets
    Interval measure =
    Average daily operating costs
    Total assets – Total equity
    Total debt ratio =
    Total assets
    Total debt Current liabilities + Long-term debt
    Debt-to-equity ratio = =
    Total equity Total equity
    Total assets
    Equity multiplier =
    Total equity
    Long-term debt
    Long-term debt ratio =
    Long-term debt + Total equity
    EBIT
    Times interest earned ratio =
    Interest
    EBIT + Depreciation expense
    Cash coverage ratio =
    Interest
    Cost of goods sold
    Inventory turnover =
    Inventory
    365 days Inventory
    Days' sales in inventory = DSI = =
    Inventory turnover COGS ÷ 365
    Sales
    Receivables turnover =
    Accounts receivable
    365 days Accounts receivable
    Days' sales in receivables = DSO = Average collection period = =
    Receivables turnover Sales ÷ 365
    Cost of goods sold
    Payables turnover =
    Accounts payable
    365 days Accounts payable
    Days' payables outstanding = DPO = Average payables period = =
    Payables turnover COGS ÷ 365
    Sales
    NWC turnover =
    NWC
    Sales
    Fixed asset turnover =
    Net fixed assets

    Exam 1 Formula Sheet Page 1 of 3


    FIN 357 Exam 1 Formula Sheet

    Sales
    Total asset turnover =
    Total assets
    Net income
    Net profit margin =
    Sales
    Net income
    Return on assets = ROA = = Net profit margin × Total asset turnover
    Total assets
    Net income
    Return on equity = ROE = = ROA × Equity multiplier
    Total equity
    Net income
    EPS =
    Shares outstanding
    Price per share
    PE ratio =
    Earnings per share
    PE ratio
    PEG ratio =
    Future earnings growth rate × 100
    Market value per share
    Market-to-book ratio =
    Book value per share
    Enterprise value = Total market value of the stock + Book value of all liabilities – Cash
    Market capitalization = Total market value of the stock = Shares outstanding × Price per share
    Enterprise value
    EBITDA ratio = Enterprise value multiple =
    EBITDA
    Cash dividends
    Dividend payout ratio =
    Net income
    Addition to retained earnings
    Retention ratio = Plowback ratio = = 1 – Dividend payout ratio
    Net income
    Total assets
    Capital intensity ratio =
    Sales
    ROA × Retention ratio
    Internal growth rate =
    1 – (ROA × Retention ratio)
    ROE × Retention ratio
    Sustainable growth rate =
    1 – (ROE × Retention ratio)

    Exam 1 Formula Sheet Page 2 of 3


    FIN 357 Exam 1 Formula Sheet

    FV = PV × (1+ r)t
    1 FV
    PV = FV × t
    =
    (1+ r) (1+ r)t
    (1+ r)t – 1
    FVA = C ×
    r
    1
    1 –[ ]
    (1+ r)t
    PVA = C1 ×
    r
    C
    PVP =
    r
    C1
    PVP =
    r–g

    1+g t
    1 – (1 + r)
    PVA = C1 ×
    r–g
    APR m
    EAR = (1+ ) –1
    m

    Exam 1 Formula Sheet Page 3 of 3

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