Total asset turnover salestotal assets profitability

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Total asset turnover = Sales/Total assets Profitability Ratios Profit margin = Net income/Sales = 363/2,311 Basic earning power = EBIT/Total assets Return on assets (ROA) = Net income/Total assets Return on Equity=Net income/Total equity Market value ratios Earnings per share (EPS) = Net income/Shares outstanding Price-earnings (PE) ratio = Price per share/Earnings per share Price-sales ratio = Price per share/Sales per share Market-to-book ratio = Market value per share/Book value per share Enterprise value = Total market value of stock + Book value of liabilities – Cash EBITDA ratio = Enterprise value/EBITDA DU Pont: ROE= Profit Margin x Total Asset Turnover x Equity Multiplier ??? = ?? (1 + ? ) t (1 + ? ) ? is the future value interest factor FVIF 1/ (1+ ? ) ? is the present value interest factor PVIF
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??????? ?? = ? × {[1− 1/(1+ ? ) t] /r} ??????? ??? ?? = ??????? ?? × (1 + ? ) ??????? ?? = ? × [(1+ ? ) ? −1]/ ? ??????? ??? ?? = ??????? ?? × (1 + ? ) ?????????? ?? = ? /r Growing Annuity PV= C x {[1- (1+g/1+r) t ]/r-g} ??????? ?????????? ? V = C/r-g ??? = [1 + ( ?????? ???? / )] ? ? – 1 NPV= Market Value of Investment – Cost AAR= Avg Net Income/ Avg. Book Value IRR to be calculated via trial and error. Its IRR when NPV=0 Profitability Index Decision Rule: accept if PI > 1 ??? = [(1 + ??? ) 1/ ? − 1] × m
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  • Spring '17
  • Jeffery N.G.
  • Financial Ratio, Generally Accepted Accounting Principles, NWC

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