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Quick Ratio & Ratio Type
(Cash + Marketable Securities+Receivables)/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)
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)
Extended ROA & Ratio Type
(Net Income + Interest Expense (1-tax rate))/Average Total Assets **(Profitability)
Return On Common Equity & Ratio Type
(Net Income - Preferred Dividends)Average Common Equity **(Profitability)
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
Extended Dupont Equation
[Tax Burden][Interest Burden][EBIT Margin][Asset Turnover][Financial Leverage]
([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])
Net Increase in Common from Stock option Exercise (Quick Method)
[(Avg Market Price - Exercise Price)/Avg Mkt Price] * Shares that can be converted
Three formulas for the cost of common equity
Risk free+Beta(market return-Risk free)
Bond yield + risk premium
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
Break even quantity of sales
(Fixed operating costs + fixed financing costs)/(price-variable cost per unit)
Market Cap weighted index
sum[(price)(shares)]/sum[(price in base year)(shares)] * base year index value
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