###
Receivables Turnover & Ratio Type

sales/Avg. Receivables **(Activity Ratio)

###
Days Sales Outstanding & Ratio Type

365/Receivables Turnover **(Activity Ratio)

###
Inventory Turnover & Ratio Type

COGS/Avg. Inventory **(Activity Ratio)

###
Days Inventory on Hand & Ratio Type

365/Inventory Turnover **(Activity Ratio)

###
Payables Turnover & Ratio Type

Purchases/Avg. Trade payables **(Activity Ratio)

###
Number of Days Of Payables & Ratio Type

365/Payables Turnover ratio **(Activity Ratio)

###
Total Asset turnover & Ratio Type

Revenue/Avg. Total Assets **(Activity Ratio)

###
Fixed Asset Turnover & Ratio Type

Revenue/Avg Net Fixed Assets **(Activity Ratio)

###
Working Capital Turnover & Ratio Type

Revenue/Avg. Working Capital **(Activity Ratio)

###
Current Ratio & Ratio Type

Current Assets/Current Liabilities **(Liquidity)

###
Quick Ratio & Ratio Type

(Cash + Marketable Securities+Receivables)/Current Liabilities **(Liquidity)

###
Cash Ratio & Ratio Type

(Cash + Marketable Securities)/Current Liabilities **(Liquidity)

###
Defensive Interval & Ratio Type

(Cash + Marketable Securities + Receivables)/Average daily Expenditures **(Liquidity)

###
Cash Conversion Cycle & Ratio Type

(Days sales Outstanding) + (Days of Inventory on hand) - (Number of days of Payables) **(Liquidity)

###
Debt to equity & Ratio Type

Total Debt/Total Shareholders Equity **(Solvency)

###
Debt to capital & Ratio Type

total debt/(Total Debt + Shareholders equity) **(Solvency)

###
Debt to assets & Ratio Type

Total debt/Total assets **(Solvency)

###
Financial Leverage & Ratio Type

Average total assets/average total equity **(Solvency)

###
Interest Coverage & Ratio Type

(EBIT + Lease payments)/(Interest Payments + Lease payments) **(Solvency)

###
Fixed Charge Coverage & Ratio Type

(EBIT + lease Payments)/(Interest Payments + lease Payments) **(Solvency)

###
Net Profit Margin & Ratio Type

Net Income/Revenue **(Profitability)

###
Gross Profit Margin & Ratio Type

Gross Profit/revenue **(Profitability)

###
Operating Profit Margin & Ratio Type

EBIT (or Op.Income)/revenue **(Profitability)

###
Pretax Margin & Ratio Type

EBT/Revenue **(Profitability)

###
ROA & Ratio Type

Net Income/Avg. total assets **(Profitability)

###
Extended ROA & Ratio Type

(Net Income + Interest Expense (1-tax rate))/Average Total Assets **(Profitability)

###
Operating Return on assets & Ratio Type

EBIT/Avg. Total Assets **(Profitability)

###
Return on Total capital & Ratio Type

EBIT/Avg Total Capital **(Profitability)

###
Return on equity & Ratio Type

Net Income/Average Total Equity **(Profitability)

###
Return On Common Equity & Ratio Type

(Net Income - Preferred Dividends)Average Common Equity **(Profitability)

###
FCFF

Net Income + Non Cash Charges + [Interest Expense * (1 - Tax rate)] - Fixed capital Investment - Working Capital Investment

###
FCFF (short Version)

Cash Flow from Operations + [Interest Expense * (1-Tax rate)]- fixed Capital Investment

###
FCFE (Free cash flow to equity)

Cash Flow From Ops - Fixed Capital Investment + Net Borrowing

###
Common Size Income Statement Ratios

Statement Item/sales

###
Common Size Balance Sheet Ratios

Statement Item/Total Assets

###
Common Size Cash Flow ratios

Cash FLow sttement account/Revenues

###
Original DuPont Equation (ROE)

(Net Profit Margin)*(Asset Turnover)(Leverage Ratio)

###
Extended Dupont Equation

[Tax Burden]**[Interest Burden]**[EBIT Margin]**[Asset Turnover]**[Financial Leverage]

###
Tax Burden

Net Income/EBT

###
Basic EPS

(Net Income - Preferred Dividends)/Weighted Avg # shares outstanding

###
Diluted EPS

([Net income-Preferred Dividends]+[Convertable Preferred Dividends]+[Convertable debt Interest (1-Tax rate)])/

([Weighted Avg Shares]+[Shares from converted Preferred Shares]+[Shares from conversion of debt]+[Shares from stock options])

###
DDB Depreciation

(2/Useful Life)*(cost - Accumulated Depreciation)

###
Depreciation

(Cost - Residual Value)/Useful life

###
Net Increase in Common from Stock option Exercise (Quick Method)

[(Avg Market Price - Exercise Price)/Avg Mkt Price] * Shares that can be converted

###
Quick check of Preferred Dilution

(Par ** Rate)/Share Conversion ***(if < basic EPS it is dilutive)

###
Payback Period

(Pv of future cash flow/CF₀) or 1+(NPV/CF₀)

###
WACC

(Wd)[Kd(1-t)]+(Wps)(Kps)+(Wce)(Kce)

###
After tax cost of debt

Kd (1-t)

###
Cost of preferred stock

Div/Price

###
Three formulas for the cost of common equity

(Div/Price)+g

or

Risk free+Beta(market return-Risk free)

or

Bond yield + risk premium

###
Unlevered asset beta

Beta(of equity)*(1/(1+(1-t)(d/e)))

###
Project beta

Beta(of asset)*[1+[1-t)(D/E))]

###
Cost of common equity with a country risk premium

Risk Free +beta(market return-risk free + country risk premium)

###
Break Point (in cap structure)

amount of capital at which the components cost of capital changes/weight of the component in the capital structure

###
Degree of operating leverage

%ΔEBIT/%Δsales

###
Break even quantity of sales

(Fixed operating costs + fixed financing costs)/(price-variable cost per unit)

###
% discount (think bonds)

(face value-Price)/Face value

###
Discount basis yield

(discount)(360/days)

###
Money Market Yield

((face - price)/price)(360/days)

###
Bond Equivalent Yield

Holding period yield*(360/days)

###
Margin call price

P₀(1-initial margin/1-Maintenance margin)

###
Price weighted Index

Sum of stock Prices/Number of stocks in index (adjusted for splits)

###
Market Cap weighted index

sum[(price)**(shares)]/sum[(price in base year)**(shares)] * base year index value

###
Preferred Stock valuation model

Dp/Kp

###
Duration

% Change in bond Price/Yield change in %

###
% Price change (duration)

-Duration * (yield change in %)

###
Explain duration

The percentage in price for a 1% change in yield

###
Credit Spread

yield on a default free bond - Yield on a risky bond

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