Finance Exam #1

Operating Cash Flow

EBIT + Depreciation - Taxes

Net Capital Spending

Ending Fixed Assets - Beginning Fixed Assets + Depreciation

Change in Net Working Capital

Ending NWC - Beginning NWC

Net Working Capital

Current Assets - Current Liabilities

Cash Flow from Assets

OCF - NCS - ?NWC
CFTC + CFTS

Cash Flow to Creditors

Interest Paid - New New Borrowing
=
Interest Paid - (Ending LTD - Beginning LTD)

Cash Flow to Stockholders

Dividends Paid - Net New Equity Capital

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

(Current Assets - Inventory) / Current Liabilities

Cash Ratio

Cash / Current Liabilities

Interval Measure

Current Assets / Avg. Daily Operating Expenses
=
Current Assets / (COGS / 365)

Total Debt Ratio

(Total Assets - Total Equity) / Total Assets

Debt to Equity Ratio

Total Debt / Total Equity

Equity Multiplier Ratio

Total Assets / Total Equity
OR
1 + Debt to Equity Ratio

Long-Term Debt Ratio

LTD / Total Assets

Times Interest Earned

EBIT / Interest

Cash Coverage Ratio

(EBIT + Depreciation) / Interest

Inventory Turnover Ratio

COGS / Inventory

Days' sales in Inventory

365 / Inventory Turnover

Receivables Turnover

Sales / A/R

Days' sales in Receivables

365 / Receivables Turnover

NWC Turnover Ratio

Sales / NWC

Fixed Assets Turnover

Sales / Net Fixed Assets

Total Assets Turnover

Sales / Total Assets

Profitability Margin

Net Income / Sales

Return on Assets

Net Income / Total Assets

Return on Equity

Net Income / Total Equity

Earnings per Share

Net Income / Total Shares

Price-Earnings Ratio

Price per Share / Earnings per Share

Price-Sales Ratio

Price per Share / Sales per Share

Market to Book Ratio

Price per Share / Book Value per Share
Price per Share / (Total Equity / Total Shares)

Return on Equity (DUPONT System)

Return on Assets x Equity Multiplier
(N.I. / T.A.) x (T.A. / T.E.)

Return on Assets (DUPONT System)

Profitability Margin x Total Assets Turnover
(N.I. / Sales) x (Sales / T.A.)

Internal Growth Rate

(ROA x b) / (1 - [ROA x b])

Sustainable Growth Rate

(ROE x b) / (1 - [ROE x b])

External Funding Needed

Total Assets - (Total Liabilities + Total Equity)

Operating Cash Flow

EBIT + Depreciation - Taxes

Net Capital Spending

Ending Fixed Assets - Beginning Fixed Assets + Depreciation

Change in Net Working Capital

Ending NWC - Beginning NWC

Net Working Capital

Current Assets - Current Liabilities

Cash Flow from Assets

OCF - NCS - ?NWC
CFTC + CFTS

Cash Flow to Creditors

Interest Paid - New New Borrowing
=
Interest Paid - (Ending LTD - Beginning LTD)

Cash Flow to Stockholders

Dividends Paid - Net New Equity Capital

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

(Current Assets - Inventory) / Current Liabilities

Cash Ratio

Cash / Current Liabilities

Interval Measure

Current Assets / Avg. Daily Operating Expenses
=
Current Assets / (COGS / 365)

Total Debt Ratio

(Total Assets - Total Equity) / Total Assets

Debt to Equity Ratio

Total Debt / Total Equity

Equity Multiplier Ratio

Total Assets / Total Equity
OR
1 + Debt to Equity Ratio

Long-Term Debt Ratio

LTD / Total Assets

Times Interest Earned

EBIT / Interest

Cash Coverage Ratio

(EBIT + Depreciation) / Interest

Inventory Turnover Ratio

COGS / Inventory

Days' sales in Inventory

365 / Inventory Turnover

Receivables Turnover

Sales / A/R

Days' sales in Receivables

365 / Receivables Turnover

NWC Turnover Ratio

Sales / NWC

Fixed Assets Turnover

Sales / Net Fixed Assets

Total Assets Turnover

Sales / Total Assets

Profitability Margin

Net Income / Sales

Return on Assets

Net Income / Total Assets

Return on Equity

Net Income / Total Equity

Earnings per Share

Net Income / Total Shares

Price-Earnings Ratio

Price per Share / Earnings per Share

Price-Sales Ratio

Price per Share / Sales per Share

Market to Book Ratio

Price per Share / Book Value per Share
Price per Share / (Total Equity / Total Shares)

Return on Equity (DUPONT System)

Return on Assets x Equity Multiplier
(N.I. / T.A.) x (T.A. / T.E.)

Return on Assets (DUPONT System)

Profitability Margin x Total Assets Turnover
(N.I. / Sales) x (Sales / T.A.)

Internal Growth Rate

(ROA x b) / (1 - [ROA x b])

Sustainable Growth Rate

(ROE x b) / (1 - [ROE x b])

External Funding Needed

Total Assets - (Total Liabilities + Total Equity)