FormulaSheet

FormulaSheet - Assets = Liabilities Shareholders equity[2.1...

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Assets = Liabilities + Shareholders’ equity [2.1] Revenues – Expenses = Income [2.2] Cash flow from assets = Cash flow to bondholders [2.3] + Cash flow to shareholders Current ratio = Current assets/Current liabilities [3.1] Quick ratio = [3.2] Cash ratio = Cash/Current liabilities [3.3] Net working capital to total assets = Net working capital/Total assets [3.4] Interval measure = Current assets/Average daily operating costs [3.5] Total debt ratio = [Total assets – Total equity]/Total assets [3.6] = [$3,588 – 2,591]/$3,588 = .28 Debt/equity ratio = Total debt/Total equity [3.7] = $.28/$.72 = .39 Equity multiplier = Total assets/Total equity [3.8] = $1/$.72 = 1.39 Long-term debt ratio = [3.9] = $457/[$457 + 2,591] = $457/$3,048 = .15 Times interest earned ratio = EBIT/Interest [3.10] = $691/$141 = 4.9 times Cash coverage ratio = [EBIT + Depreciation]/Interest [3.11] = [$691 + 276]/$141 = $967/$141 = 6.9 times Inventory turnover = Cost of goods sold/Inventory [3.12] = $1,344/$422 = 3.2 times Days’ sales in inventory = 365 days/Inventory turnover [3.13] = 365/3.2 = 114 days Receivables turnover = Sales/Accounts receivable [3.14] = $2,311/$188 = 12.3 times Days’ sales in receivables = 365 days/Receivables turnover [3.15] = 365/12.3 = 30 days NWC turnover = Sales/NWC [3.16] = $2,311/($708 – $540) = 13.8 times Long-term debt Long-term debt + Total equity Current assets – Inventory Current liabilities
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Fixed asset turnover = Sales/Net fixed assets [3.17] = $2,311/$2,880 = .80 times Total asset turnover = Sales/Total assets [3.18] = $2,311/$3,588 = .64 times Profit margin = Net income/Sales [3.19] = $363/$2,311 = 15.7% Return on assets = Net income/Total assets [3.20] = $363/$3,588 = 10.12% Return on equity = Net income/Total equity [3.21] = $363/$2,591 = 14% P/E ratio = Price per share/Earnings per share [3.22] = $157/$11 = 14.27 times Market-to-book ratio = Market value per share/Book value per share [3.23] = $157/($2,591/33) = $157/$78.5 = 2 times ROE = Net income/Sales × Sales/Assets × Assets/Equity [3.24] = Profit margin × Total asset turnover × Equity multiplier Dividend payout ratio = Cash dividends/Net income [4.1] = $44/$132 = 33 1 3 % EFN = Increase in total assets – Addition to retained earnings [4.2] = A(g) p(S)R × (1 + g ) EFN = – p(S)R + [ A – p(S)R ] × g [4.3] EFN = – p(S)R + [ A –p(S)R ] × g [4.4] g = pS(R) /[ A –pS(R) ] = .132($500)(2/3)/[$500 – .132($500)(2/3)] = 44/[500 – 44] = 44/456 = 9.65% Internal growth rate = [4.5]
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