Net Income / Initial Investment

Â Cost of Goods Sold / Average Accounts Payable

credit sales / average gross accounts receivables

Net Credit Sales/Avg Net Accounts Receivable

Investment in Accounts Receivable / Daily Sales

Cost- Salvage Value/Years

1.Accounts receivable turnoverÂ

2.Accounts payable turnoverÂ

3.Inventory turnoverÂ

4.Days sales in receivablesÂ

5.Days sales in inventoryÂ

6.Days purchases in payablesÂ

7.Operating cycleÂ

8.Cash cycleÂ

9.Total asset turnoverÂ

10.Fixed asset turnover

Total Revenue / Average Total Assets

365 / Receivables Turnover

Total Cost/Sales

365 / Inventory Turnover

A balance of common shares account/acquisition

Assets = Liabilities + Stockholders’ Equity

Net Income – Preferred Dividends/Weighted-Average Common Shares Outstanding

Stockholder’s Equity Applicable to Common Shares/Number of Common Shares Outstanding

Stockholder’s Equity Applicable to Preferred Shares/Number of Preferred Shares Outstanding

(total stockholders’ equity – preferred equity) /Â

number of common shares outstanding

Break Even = Fixed Cost/Contribution Margin

fixed costs / (unit contribution margin/selling price)

Fixed Costs / Contribution Margin Ratio

Fixed Costs / CMPU

Cash Flow from Operating Activities / Cash Paid for Property, Plant, and Equipment

EBIT + depreciation / interest

Operating cycle – days purchases in payables

Â (cash + marketable securities) / current liabilities

Cash-To-Expense Ratio = (Investment in Cash + Investment in Marketable Securities) / (Annual Operating Expense/365 days)

BWIP

DM used:

Beg RM

(+) Purchases

(=) Available

(-) End RM

(=) DM used in production

(+) DL

(+) MOH

(=) Total Manufacturing Costs

(+) BWIP

(-) EWIP

(=) COGM

Beg FG Inventory

(+) COGM

(-) End FG Inventory

(=) COGS

Principal of the Note x Annual Interest Rate x Time Expressed In Fraction of Year = Interest

Sales Revenue – Variable Costs

Contribution Margin Ratio

Contribution Margin / Sales Revenue

Conversion Costs

DL + MOH

1.Breakeven point in unitsÂ

2.Breakeven point in dollarsÂ

3.Margin of safety

4.Margin of safety ratio

Current Assets / Current Liabilities

365/Inventory Turnover

average payables / (purchase / 365)

365 days / inventory turnover or

Â Investment in Inventory / Cost of Daily Sales

365 days/receivables turnovers or

average accounts receivable / (credit sales / 365)

Accounts Receivable/Net Sales x 365

Earnings BEfore Interest and Taxes for a Given Period /(Interest Expense for a Given Period + Principal Payments on Debt for a Given Period)

Total Liabilities/Total Assets

Total Liabilities/ Total Equity

% change in net income / % change in EBIT,

orÂ

= EBIT / EBT

= % change in EBIT / % change in salesÂ

orÂ

= contribution margin / EBIT

Unit Depletion Rate X Number of Units Extracted

Depletion Per Unit x Units Extracted and Sold In Period

Cost – Salvage Value/ Total Units of Capacity

(Initial Investment + Salvage Value) / Useful life

Cost – Salvage Value

(net income – preferred dividends) / diluted weighted average common shares outstandingÂ

Standard Rate * (Standard Hours – Actual Hours)

Actual Hours x (Standard Rate – Actual Rate)

Actual Quantity x (Standard Price – Actual Price)

Standard Price x (Standard Quantity – Actual Quantity)

cash dividends / net income

Annual dividends per share / market price per share

( 2/useful life) X Book Value Start

Net Income – Preferred Dividends/ Average number of common shares outstandingÂ

EPS / current market price per common share

EBITDA / sales

enterprise value / EBITDA

E = [change in quantity / (average of quantities)] / [change in price / (average of prices)]

total market value of the stock + book value of all liabilities – cash

total assets / total equity

= assets / equity

= sales / average net plant, property and equipment

= earnings before fixed charges and taxes / fixed charges fixed charges include interest, required principal repayment, and leases

fixed charges include

include interest, required principal repayment, and leases

Interest coverage (times interest earned)

= EBIT / interest expense k(3) Cash flow to fixed charges = (cash from operations + fixed charges + tax payments) /Â

fixed charges. Note: cash from operations is after-tax.

Fixed-Asset Turnover = Annual Sales / Investment in Property, Plant, and Equipment

Purchase Cost – Fair Value of Identifiable Assets

Â gross profit / sales

(Net Sales Revenue – COGS) / Net Sales Revenue

Revenues – ExpensesÂ

COGS / Average Inventory

Invest Coverage Ratio = Earnings BEfore Interest and Taxes for a Given Period / Interest Expense for a Given Period

Sales Revenue / Average Invested Assets

Avg Totals Assets/ Avg shareholders equity

1.Degree of financial leverageÂ

2.Financial leverage ratioÂ

3.Total debt to total capital ratioÂ

4.Debt to equity ratioÂ

5.Long-term debt to equityÂ

6.Debt to total assets ratioÂ

7.Fixed charge coverageÂ

8. Interest coverage (times interest earned)

Net working capitalÂ

Current ratioÂ

Cash ratioÂ

Cash flow ratioÂ

Net working capital ratio

= (total debt – current liabilities) / equity

= planned sales – breakeven sales

= margin of safety / planned sales

1.Market-to-book ratioÂ

2.Price earnings ratioÂ

3.Price to EBITDA ratioÂ

4.Book value per shareÂ

5.Basic EPSÂ

6.Diluted EPSÂ

7.Earnings yieldÂ

8.Dividend yieldÂ

9.Dividend payout ratioÂ

10.Shareholder return

= current stock price / book value per share

Â = Number Of Shares Issued X Share Price at Date

Hurdle Rate * Average Invested Assets

= Acquisition Cost – Accumulated Depreciation

Net Income + Depreciation

(Annual cash flows * PV of $1) – Initial Investment

Net Income / Net Sales (Operating Revenues)

return on common equity

or

=(net income / sales) x (sales / average total assets) x

(average total assets) / average equity

net working capital / total assets

operating income / sales

Market Price Per ShareÂ /Earnings per share

Sales

less: COGS

(=) Gross Margin

less: Operating Expenses

(=) Net Operating Income

Initial Investment / Annual Cash Flow

= Net Cash From Operating Activities –Â

Capital Expenditures – Cash Dividends

market price per share of common stock/earnings per share

ROI

RI

market price per share / EPS

market price per share / EBITDA per share

price per share / sales per share

DM + DL

net income / sales

1.ROAÂ

2.ROE

3.Net profit margin x total asset turnover x equity multiplier (DuPont model)

4.Gross profit margin percentageÂ

5.Operating profit margin percentageÂ

6.Net profit margin percentageÂ

7.Sustainable growth rate

PV of Future Cash Flows / Initial Investment

(1) Gross profit margin percentageÂ

(2) Operating profit margin percentageÂ

(3) Net profit margin percentageÂ

(4) EBITDA marginÂ

(5)ROAÂ

(6) ROE

Cash Flow from Operating Activities / Net Income

(cash + marketable securities + accounts receivable) /

current liabilities

Net Income / Average Total Assets

Income of business unit – (Assets of business unit x required rate of return)Â

Note: “Income” means operating income unless otherwise noted

= Net profit margin x total asset turnover

or

= (net income / sales) x (sales / average total assets)Â

or

= net income / average total assets

= Profit Margin X Asset turnover X Leverage

= Current Ratio

=ROA x financial leverage

or

= (net income / average total assets) x (average total assets / average equity )

or

= net income / average equity

Net Operating Income / Average Invested Assets

Profit Margin * Investment Turnover

Income of business unit / Assets of business unit

(ending stock price – beginning stock price + annual dividends per share) / beginning stock price

Special Order Price

(-) Variable Manufacturing Costs

(-) Variable Selling and Administrative

(-) Additional Fixed Costs

(=) Net Extra Income per unit

+/- Cash Flows from Operating Activities

+/- Cash Flows from Investing Activities

+/- Cash Flows from Financing Activities

= Net Change in Cash

+/- Cash Flows from Operating Activities

+/- Cash Flows from Investing Activities

+/- Cash Flows from Financing Activities

= Net Change in Cash

Retained Earnings (beginning) + Net Income – Dividends

Depreciation Cost / Useful Life

Cost – Salvage Value/ Useful Life in Periods

= (1- dividend payout ratio) x ROE

(FC + Target Operating Income) / CMR

Â

(FC + Target Operating Income) / CMPU

Re = Rf + Risk Premium

Rd = Rf + Risk Premium

EBIT / interest or

(Net Income + Interest Expense + Income Tax Expense) / (Interest Expense)

sales / average total assets

total assets – total equity / total assets

(current liabilities + long term liabilities) / (total debt + total equity)

DM + DL + MOH

Variable Costs + Opportunity Cost

= (Total Cost – Salvage Value )/units in resource

= (Depreciation Cost / Total Units Of activity)Â

X

Units of Activity used in year

= Current Assets – Current Liabilities

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