GSBA 510 Formula Sheet: Student Name______________________________ Core ______

1. Accoun ng Equa on: Total Assets = Total Liabili es plus Total Stockholders Equity.
2. Accounts Receivable Turnover: Net Credit sales divided by average accounts receivable
3. Adjusted EBITDA: EBITDA plus other non-cash expenses, minus non-cash income, plus any
one- me expenses or losses, minus any one- me gains or income.
4. Adjusted EBIT: EBIT minus non-opera ng income plus non-opera ng expenses
5. Asset Turnover: Net revenue divided by Average total assets
6. Break-even: Revenues minus expenses = 0
7. Break- even ( Total Revenue): Total Fixed Cost divided by contribu on margin per unit.
8. Break- even ( units): Total Fixed Cost divided by contribu on margin per unit.
9. Capital expenditures: purchases of property plant and equipment.
10. Capital Turnover: Net revenue divided by Average total shareholder equity
11. Carrying amount of borrowings: Outstanding principal balance of borrowings plus
premiums minus discounts.
12. Cash to Current Assets ra o: ( Cash and equivalents plus Marketable securi es) divided by
total current assets
13. Cash to Current Liabili es ra o: ( Cash and equivalents plus Marketable securi es) divided
by total current liabili es
14. Cash returned to common shareholders: Dividends paid to common shareholders plus
current year purchases of Treasury stock
15. Common Shareholder Equity: Total Stockholder equity minus par value of preferred stock.

16. Contribu on Margin: Revenue minus variable costs. This may be prepared on a price and
cost per unit basis or on a total dollar basis.
17. Contribu on Margin Ra o (CMR): Contribu on Margin divided by Sales. This may be
prepared on a price and cost per unit basis or on a total dollar basis.
18. Cost of Goods Sold Equa on: Beginning inventory plus Purchases minus Ending Inventory =
Cost of Goods Sold.
19. Coverage ra o: Earnings metric divided by interest expense or fixed charges
20. Current ra o: Current assets divided by Current Liabili es
21. Days Sales in Inventory : 365 divided by Inventory turnover
22. Days Sales Outstanding: Ending Accounts receivable divided by Daily net revenue
23. Debt Equity ra o: Total liabili es divided by Total stockholder equity

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GSBA 510 Formula Sheet: Student Name______________________________ Core ______
24. Degree of Opera ng Leverage:
a. (using financial statements): Percentage change in opera ng income/ Percentage
change in net revenue
b. (using contribu on margin): contribu on margin divided by opera ng income (net
income)
25. Depreciable basis: Cost of purchase minus salvage value
26. Dividend Pay-out ra o: Common dividends divided by Net Income Available to common
shareholders
27. Dividend Per Share: Common dividends divided by Weighted average common shares
outstanding
28. Dividends Pre-tax: ( AKA the amount of pre-tax earnings to pay for addi onal dividends.)
The dividend amount is divided by ( 1 minus effec ve income tax rate).
29. Dividend Yield: Common dividends divided by market price per share of common stock
30. Earnings before taxes: (EBT) Net Income plus income tax expense
31. Earnings before Interest and Taxes (EBIT): Net income plus income tax expense, plus
interest expense -minus interest income.
32. Earnings Metric: Used for Non-GAAP and other metrics. Can be a variety of things and must
be specified by those seeking analysis. Common earnings metrics include: Net income, EBT,
EBIT, EBITDA , Adjusted EBIT, and Adjusted EBITDA.
33. EBITDA: EBIT plus deprecia on and amor za on.

34. Earnings Yield: Net Income Available to common shareholders divided by market price per
share of common stock (or 1/PE ra o)
35. Earnings per share: Net Income Available to common shareholders divided by Weighted
average common shares that are outstanding.
36. Earnings to Fixed charges: (Earning metric plus those fixed charges deducted from the
earnings metric) divided by fixed charges.
37. Economic Value Added: Actual Earnings metric minus (Investment amount x hurdle rate)
38. Effec ve Income Tax Rate: Income Tax Expense divided by Earnings Before Income Taxes
39. Free Cash Flow: Cash Flow from Opera ng Ac vi es minus dividends paid on preferred stock
minus capital expenditures.
40. Fixed Charges: The sum of interest expense plus lease expense plus pre-tax earnings
required to pay minimum level of preferred dividends.

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GSBA 510 Formula Sheet: Student Name______________________________ Core ______
41. Gross Profit: Sales ( revenue) minus cost of goods sold.

42. Gross Margin: ( aka Gross Profit Margin) Gross Profit divided by sales

43. Growth Capital: The excess of capital expenditures over maintenance capital.

44. Inventory Turnover: Cost of goods sold divided by Average inventory

45. Leverage ra o: Liability measure divided by something. That something can be items on the
balance sheet or can be an earnings metric.
46. Market Capitaliza on: Outstanding common shares x market price per common share.
47. Mark up: The difference between cost per unit and sales per unit.
48. Mark up Percentage: Markup divided by cost per unit.
49. Net Borrowings: Borrowings minus cash and cash equivalents
50. Net Income Available to Common shareholders: Net Income minus preferred dividends
51. Net Opera ng Income: EBIT minus non-opera ng income plus non-opera ng expenses
52. Opera ng Cash Flow Ra o: Cash Flow from Opera ons divided by Total Current Liabili es
53. Opera ng Efficiency Ra o: Opera ng expenses divided by Net revenue
54. Profit Margin (aka Net Profit Margin): Net Income divided by Net revenue
55. Price Earnings Mul ple: Price per common share divided by earnings per share.
56. Quick Ra o: ( Cash + Cash equivalents plus current marketable securi es plus accounts
receivable) divided by Current Liabili es.
57. Reten on ra o: 1-dividend pay-out ra o
58. Return on Assets: Net Income divided by Average total assets
59. Return on Equity: Net Income divided by Average total shareholder equity
60. Return on Common Equity: Net Income Available to common shareholders divided by
Average common shareholder equity.
61. Times Interest Earned: (aka TIE Ra o) Earnings Metric divided by Gross Interest expense
62. Unlevered Free Cash Flow: Free Cash Flow plus a er tax interest expense
63. Working Capital: Current Assets minus Current Liabili es

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