NWC -...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: NWC=curr
ass‐curr
liab,Curr.
Ratio=curr.
ass/curr
liab.(short
term
liqui),Quick
ratio=curr.ass‐ inventory/curr.liab.,
Cash
ratio=cash/curr.liab,
NWCtototass=NWC/tot
ass,Interval
 measure=curr
ass/average
daily
op
cost(tot
cost/365)
Tot
debt
ratio=tot
ass‐tot
equity/tot
 ass,
Debt‐equity
ratio=tot
debt/tot
equità,
Equity
multiplier=tot
ass/tot
equity
(1+debt
equità
 ratio),
TIE
ratio=EBIT/interests($),
cash
cover
ratio=EBIT+depr/interests,
Inv
turnover=
cost
 of
goods
sold/inv,
Days’
sales
in
inv=365/inv
turnover,
Profit
margin=net
income/sales,
 ROA=net
income/tot
ass,
ROE=net
income/tot
equity,
ROI=operating
income/tot
ass,
EPS=net
 income/shares
out
standing,
PE
ratio=price
per
share/earnings
per
share,
Du
 Pont=ROE=ROAxEquity
multiplier
(1+debt
equity
ratio)
and
ROE=profit
margin
x
tot
ass
 turnover
x
equity
multiplier.
 Dividend
payout
ratio=cash
dividends/net
income,
Plowback=addition
to
retained
 earnings/net
income,
internal
growth
rate=
ROA
x
b/1‐ROA
x
b,sustainable
g
grate=ROE
x
 b/1‐ROE
x
b,
 
 common
stock
valuation
 P0=D1/(1+R)^1+…
 Zero
growth:
D/R
Constant:
D0x(1+g)^t
nonconstant:
P4=D4x(1+g)/(R‐g)
 ...
View Full Document

Ask a homework question - tutors are online