This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Comm 217 Equation Sheet Current Ratio = Current Assets / Current Liabilities Cash Ratio = (Cash + Cash Equivalent) / Current Liabilities Quick Ratio = Quick Assets / Current Liabilities Accounts Payable Turnover = Cost of Goods Sold/ Average Accounts Payable Average Age of Payables = Days in Year/ Accounts Payable Turnover Receivables Turnover = Net Sales / Average Net Trade Receivables Average Age of Receivables = Days in a Year/ Receivable Turnover Working Capital = Current Assets ‐ Current Liabilities Asset Turnover Ratio = Sales (or Operating) Revenues/ Average Total Assets Inventory Turnover = Cost of Goods Sold / Average Inventory Returns on Assets = Net Income/ Average Total Assets Average Days’ Supply in Inventory = Days in Year/ Inventory Turnover Net Book Value = Cost – Accumulated amortization Δ Cash = Δ Liabilities + Δ Shareholders’ Equity ‐ Δ Non‐cash Assets Quality of Income Ratio = Cash Flow from Operating Activities / Net Income Capital Acquisition Ratio = Cash Flow from Operating Activities / Cash Paid for Property, Plant, and Equipment Free Cash Flow = Cash Flow from Operating Activities – Dividends – Capital Expenditures Weighted‐average cost (WAC) per unit = Cost of goods available for sale/ Number of units available for sale Fixed Asset Turnover = Net Sales Revenue/ Average Net Fixed Assets Times Interest Earned = (Net income + Interest expense + Income tax expense)/ Interest expense Financial Leverage Ratio = Average Total Assets / Average Shareholders’ Equity = ROE ‐ ROA EPS = Net Income available to common shareholders/ Average Number of Common Shares Outstanding We’ve helped over 60,000 students get better grades since 1999! Need help for exams? Check out our classroom prep sessions - customized to your exact course - at www.prep101.com
Quality of Income = Cash Flow from Operating Activities/ Net Income Profit Margin = Net Income / Net Sales Cash Coverage = Cash Flow from Operating Activities before Interest and Taxes/ Interest Paid Debt‐to‐Equity Ratio = Total Liabilities/ Owners’ Equity P/E Ratio = Current Market Price per Share/ Earnings per Share w ww.prep101.com Dividend Yield = Dividends Per Share/ Market Price Per Share ROE = Net Profit Margin * Asset Turnover * Financial Leverage Straight line method: Amortization Expense per Year = (Cost ‐ Residual Value) / Life in Years Units of Production Method: Amortization Rate = (Cost ‐ Residual Value) / Estimated Total Production Amortization Expense = Amortization Rate*Actual Annual Production Double Declining Balance Method: Annual Amortization Expense = Net Book Value * (2/useful life in years) Our Course Booklets - free at prep sessions - are the “Perfect Study Guides.” ...
View Full Document
This note was uploaded on 03/12/2010 for the course COMM 217 taught by Professor Smroz during the Fall '07 term at Concordia Canada.
- Fall '07