Return on Assets
ROA=asset turnover X profit margin
Return on Equity
ROE=(assets/equity) X asset turnover X profit margin X debt burden
Future Value
FV=(1+r)^t
t=years, r=interest rate
Present Value
PV=1/(1+r)^t
Annuity PV
PV= (1/r) - 1/r(1+r)^t
Annuity FV
FV=[(1+r)^t -1]/r
Effective Annual Rate
EAR=[1 + (APR/m)]^m - 1
m=compounding periods per year
Real Value of CF
Real Value of CF at time t=nominal CF/(1+inflation rate)^t
Real interest rate
Real Interest Rate=[(1+nominal rate)/(1+inflation rate)]-1 ~~nominal rate-inflation rate
Market Value Added
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Market-to-Book Ratio
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ROE
ROE=NI/Equity
ROA
ROA=(NI+interest)/total assets
Return on Capital
ROC=(NI+interest)/(Long-term debt+ Equity)
EVA
EVANI-cost of equityXequity
Operating Profit Margin
OPM=(NI+interest)/sales
Asset Turnover
sales/total beginning assets
Inventory Turnover
CoGS/beginning inventory
Long-term Debt Ratio
LT debt/(LT debt +equity)
Times interest earned
EBIT/interest payments
Cash Coverage Ratio
(EBIT+depreciation)/interest payments
Net Working Capital to Total Assets
NWC/Total assets
Current Ratio
current assets/current liabilities
Quick Ratio
(cash+marketable securities+receivables)/current liabilities
Payout Ratio
dividends/earnings
Sustainable Growth
(1-Payback Ratio) x ROE