Sheet Formula First Exam FIN 301
EBIT= Sales Operating Costs Net cash flow = Net income + Depreciation & Amortization Net Operating Working Capital = (Cash & Equivalents + A/R + INV) (A/P + Accruals) Total Operating Capital = NOWC + Net fixed Assets NOPAT = EBIT(1-tax rate) Operating cash flow = NOPAT + (Depreciation & Amortization) FCF = [EBIT(1-t) + (Dep & Amort.)] [cap expenditures + NOWC] FCF = Operating cash flow investment in operating capital MVA = Market value of stock equity capital supplied by shareholders = [(shares out)(stk price)] total equity common EVA = NOPAT Annual dollar cost of capital = (EBIT)(1-t) [Total investor supplied capital x after-tax percentage cost of capital] = Net income (equity capital x % cost of equity capital) =Equity capital x (ROE-%cost of equity capital) = days sales outstanding = Receivables/Average sales per day = Receivables/Annual sales/365
DSO
Times-interest-earned (TIE) = EBIT/Interest charges EBITDA coverage ratio = [EBITDA + Lease Pmt.] / [Int. + Principal + Lease Pmt.] Basic Earning Power (BEP) ratio = EBIT/Total Assets ROA = Profit margin x Total Assets Turnover