Formulas2

Formulas2 - This is the exact formula sheet you will be...

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This is the exact formula sheet you will be provided on the exam. Learn how to use it in advance. You will not be allowed to ask any questions about this sheet during the exam. You are responsible for knowing all other definitions/formulas/identities covered in class. Liquidity ratios Turnover ratios Current ratio CA / CL Inventory turnover CoGS / inv. Quick ratio (CA – inv) / CL Days’ sales in inventory 365 / inv. turn. Cash ratio Cash / CL Receivables turnover Sales / AR Days’ sales in receivables 365 / receivables turn. Leverage ratios Total asset turnover Sales / Assets Total debt ratio D / A Capital intensity Assets / Sales Debt-equity ratio D / E Equity multiplier A / E Profitability ratios Times interest earned ratio EBIT / Interest Profit margin NI /sales Cash coverage ratio EBITDA / Interest Return on assets (ROA) NI / A Return on equity (ROE) NI /E Market-value ratios Price-earnings (PE ratio) Price per share / Earnings per share Market-to-book ratio MV per share / BV per share DPR = Div. / NI Retention/Plowback ratio = ARE / NI 1
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Formulas2 - This is the exact formula sheet you will be...

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