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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
Debtequity 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
Marketvalue ratios
Priceearnings (PE ratio)
Price per share /
Earnings per share
Markettobook ratio
MV per share /
BV per share
DPR = Div. / NI
Retention/Plowback ratio = ARE / NI
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 Fall '08
 MATTHEWJAMESBARCASKEY

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