BA 2802 – Principles of Finance

Formula Sheet for the First Interim Exam

Current Assets Current Assets - Inventory

1. Current = 2. Quick =
Current Liabilitie s Current Liabilitie s

Cash Total Assets - Total Equity

3. Cash = 4. Total Debt =
Current Liabilities Total Asset s

Total Debt Total Assets

5. Debt to Equity = 6. Equity Multiplier =
Total Equity Total Equity

EBIT
7. Times Interest Earned =
Interest Expense

EBIT  Depreciation
8. Cash Coverage =
Interest Expense

9. Total Asset Turnover = Sales

Total Assets

Cost of Goods Sold

10. Inventory Turnover =
Inventory

11. Days’ Sales in Inventory = 365

Inventory Turnover

Sales
12. Receivable Turnover =
Accounts Receivable

365
13. Days’ Sales in Receivables =
ReceivableTurnover

Net Income
14. Capital Intensity = Total Assets 15. Profit Margin =
Sales Sales

Net Income Net Income

16. Return on Assets = 17. Return on Equity =
Total Assets Total Equity

18. ROA = Profit Margin × Total Asset Turnover

19. ROE = Profit Margin × Total Asset Turnover × Equity Multiplier

Price per Share Price per Share

20. Price Earnings = 21. Price Sales =
Earnings per Share Sales per Share

Market Value per Share

22. Market to Book Value =
Book Value per Share

Dividend Per Share

23. Payout Rate =
Earnings Per Share

Annual Dividend Per Share

24. Dividend Yield =
Share Pr ice

Net Income
25. Earnings per share =
Number of Shares Outs tan ding

Total Dividends
26. Dividends per share =
Number of Shares Outs tan ding

ROE  b ROA  b
27. Sustainable Growth Rate = 28. Internal Growth Rate =
1  ROE  b 1  ROA  b

mn
 APR 
29. Effective n-period Rate = 1   1
 m 

30. Effective n-period Rate = e

r×n
–1

m[1  Effective Rate

1/(mn)
31. Annual Percentage Rate =  1]

FVn
32. PV 33. FVn  PV(1  r) n
(1  r ) n

 1 
1 
 (1  r ) n   (1  r )  1
n

34. PVA  PMT   35. FVA n  PMT  

 r   r
 