CFA Level II

Formula Sheet 3 - Fin Stmt Analysis

http://cpacfa.blogspot.com

Working Capital =

Current ratio =

Quick ratio/acid test =

Cash ratio =

A/R T/O =

Inventory T/O =

A/P T/O =

Days sales outstanding =

Avg A/R collection period =

Inventory processing period =

A/P payment period =

Gross margin % =

Operating profit margin =

Net Profit margin =

Asset T/O =

Equity T/O =

ROA =

1
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com
ROA =

ROE =

ROE =

Return on total capital =

Traditional Dupoint model =

Debt to capital =

Interest burden rate =

Interest coverage ratio =

Debt service coverage ratio =

Debt payback period =

Tax retention rate =

Payout ratio =

Retention ratio =

Sustainable growth rate =

Basic EPS =

2
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com
Diluted EPS =

Book value per share =

Trading Securities –
•
•

Available for sale –

•
•
•

Held to Maturity Securities –

•
•

Reclassification; transfer of security from one group to another

From To Adjustment
-
-
-
-

Cost method -
•

Equity Method / Proportionate Consolidation (IAS) -

•

Consolidate -
•
•
•
•

3
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com

Equity Method Cheat Sheet

Projected benefit obligation (PBO) –

Accumulated benefit obligation (ABO) –

Vested benefit obligation (VBO) -

Prior Service Cost (PSC) –

•

Impact of Pension Assumptions

I/S expense formula

-
-
-
-
-
-
_______________________

Adjusted pension expense =

End PBO =

4
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com

B/S
Funded status =
•
•

Change to comprehensive income =

All-current (translation) method -

•

Temporal (remeasurement method) –

•
•

Local currency (_______) ----------- Functional Currency (_________) --------- Reporting Currency (______)

_____________ _____________

All-Current Method (___________): __________ Currency (______) ------------ __________ Currency (_____)
I/S
•
•
•

B/S
•
•
•
•
•
-

5
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com

Original F/S vs Translated F/S under All Current method

•
•
•

Change in exchange rate =

All Current accounting exposure =

Temporal Method (_____________): _______ Currency (______) ------- ___________ Currency (________)
B/S
•
•
•

I/S
•
•
•
•
-

If local currency appreciates

•
•
•
•

Temporal accounting exposure =

6
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com

Monetary assets =

Non-monetary assets =

Recognition effects
All Current
•

Temporal
•
•

Translation gain/loss =

Holding g/l effect =

Flow effect =

Exchange rate effect =

Operational effect =

Balance Sheet Adjustments

Sold A/R with recourse
•
•

Using LIFO
•
•

Using Operating Leases

•
7
 CFA Level II
Formula Sheet 3 - Fin Stmt Analysis
http://cpacfa.blogspot.com
•

Using Take or Pay Commitments

•
•
Goodwill
•
•

Change in MVF of LT Debt

•
•