FORMULA - SHEET

Analysis of Financial Statements-HO#1 EBIT

Time Interest Earned (TIE) Ratio =
Liquidity Ratios: Interest Expense
Current Assets
Current Ratio= EBITDA Coverage=
Current Liabilities
EBITDA+ Lease Payments
Quick/Acid Test Ratio=
Interest + Principal payments+ Lease Payment
Current Assets−(Inventories+ prepaid)
Total Assets
Current Liabilities Equity Multiplier =
Common Equity
Cash+ Marketable Securities
Cash Ratio= LongTerm Liability
Current Liabilities Long Term Debt to Equity =
Total Equity
Net Working Capital = Current Assets-Current Liabilities
Profitability Ratios:
Asset Management/ Efficiency Ratios: Net Income
Cost of Goods Sold∨Sales Net Profit Margin=
Inventory Turnover Ratio= Sales
Inventory
EBIT
Average Inventory Basic Earning Power=
Days Inventory Outstanding = Total Assets
Cost of Goods Sold /360
Net Income
360 Return on Equity (ROE)=
Days Inventory Outstanding (DIO) = Common Equity
Inventory Turnover
Net Income Sales
Net Credit Sales Du Pont ROE= * *
A/c Receivable Turnover = Sales Total Assets
Average Accounts Receivables
Total Assets
Days Sales Outstanding or ACP= Common Equity
Average Receiables Net Income
Annual Credit Sales/360 Return on Assets( RO A)=
Total Assets
Days Sales Outstanding or ACP= Net Income Sales
Du Pont ROA= *
360 Sales Total Assets
Account Receivable Turnover EBIT
Operating Profit Margin=
Net Credit purchase Sales
A/c payable Turnover =
Average Accounts payables Gross Profit
Gross Profit Margin=
Days payable Outstanding = Sales
Average payables Market Values Ratios:
Annual Credit purcha se /360 Earnings per Share (EPS) =

Days payable Outstanding (DPO) = Net Income−Preferred Dividend

Average Common ShareOutstanding
360
Account payable Turnover Price Per S h are
Price Earnings (P/E) Ratio =
Earnings Per S h are
Operating Cycle = DIO + (Days Sales Outstanding (DSO)
Cash Flow per Share =
Cash Conversion Cycle = DIO + DSO – DPO
Cash+ Marketable Securities
Sales Average Common ShareOutstanding
Fixed Assets Turnover Ratio = Assets ¿
Net ¿
Price Per S h are
Sales Price Cash Flow (P/CF) Ratio =
Total Asset Turnover = Cas h Flow Per S h are
Total Assets
Dividend Per S h are
Credit Sales Dividend per Share (DPS) =
Credit Sales to Total Sales = Earnings Per Share
Sales
Dividend Per S h are
Debt Management Ratios: Dividend Yield Ratio =
Market Price Per Share
Total Liabilities
Debt Ratio= Total Dividend
Total Assets Payout Ratio =
Net Income−Preferred Dividend
Total Equity
Equity Ratio = Retained Earnings
Total Assets Plowback Ratio =
Net Income−Preferred Dividend
Total Liabilites
Debt ¿ Equity Ratio = Total Equity
Total Equity Book Value per Share =
S h areOutstanding
Market Debt Ratio=
Market Price Per S h are
Total Liabilities Market to Book Ratio =
Book Value Per S h are
Total Liabilities+ Marekt Value of Equity

Financial Statements, Cash Flow & Taxes-HO#02

Net Operating WC (NOWC) = Operating Current Assets (OCA – Operating Current Liabilities (OCL)
WACC = (Wd)(Kd)(1- Tax rate) + (Ws) (Ks) + (Wps) ( Kps)
Economic Value Added (EVA) = Operating Capital – (ROIC - WACC)
EVA = EBIT (1–Tax rate)–(TNOC) (WACC)
Market Value Added (MVA) = Total Market Value – Total Investors Supplied Capital
Net cash flow = Net Income + Depreciation and Amortization
Operating Cash Flow (OCF)=NOPAT+ Depreciation
Net cash flow=Net Income - Noncash Expense + Non cash Expenses
Free Cash Flow (FCF) = NOPAT - Net Investment in Operating Capital (NIOC)
NOPAT
Return on Invested Capital (ROIC)=
OperatingCapital
Total Net Operating Capital (TNOC) = NOWC + Operating Long Term Assets
NOPAT = EBIT (1 – Tax rate)
Gross Investment in Operating Capital (GIOC) = NIOC + Depreciation