Finance equations

Finance equations - (Look at EV as A = L + E) looking for...

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ROE = (Net Income/Total Equity) Profit Margin = (Net Income/Sales), Current Ratio = (Current Assets/Current Liabilities), Inventory Turnover (COGS/Inventory), Accounts Receivable days : aka Days Sales Outstanding (Accounts Receivable/Average Daily Sales) Debt-to-Equity Ratio (book: Total Liabilities/Total Equity) Quality of Earnings (CF from Oper/Net Income) Market Value = Market Capitalization = # of shares outstanding x price per share Enterprise Value = value of underlying business assets = Market Value + (Debt) – Cash
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Unformatted text preview: (Look at EV as A = L + E) looking for MV of Assets less cash: cash does not produce operating income Earnings per share (EPS) = Net income # shares outstanding Price to earnings (P/E) = Price/share EPS Working Capital = Current Assets – Current Liabilities Return on Equity (ROE) = Net Income Total Equity Return on Assets (ROA) = Net Income Total Assets Net realizable value: best guess at bad debt expense. Don’t know how much will go bad. Allowance for doubtful accounts...
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This note was uploaded on 03/08/2011 for the course GB 212 taught by Professor Willet during the Spring '11 term at Bentley.

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Finance equations - (Look at EV as A = L + E) looking for...

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