ROE =
return on equity =
(PM)(TAT)(EM)
profit margin
total asset turnover
equity multiplier
or net income / total equity
or (net income / sales)
(sales / assets)
(assets / equity)
debt-equity ratio =
D/E
D/E = EM - 1
Based only on the following information for Bennington Corp., did cash go up or down? By how much?
Decrease in inventory $580
Decrease in accounts payable 190
Increase in notes payable 610
Increase in accounts receivable 210
=
Decrease in inventory - Decrease in accounts payable + Increase in notes payable - Increase in accounts receivable
Net investment in FA =
(NFA end - NFA beg) + Depreciation
current ratio =
CA / CL
NWC =
CA - CL
CA =
NWC + CL
Quick ratio =
(CA ? Inventory) / CL
Profit margin =
Net income / Sales
Net income =
Sales * Profit margin
ROA =
return to assets
Net income / TA
Total assets =
total debt + total equity
ROE =
return to equity
Net income / total equity
Receivables turnover =
Sales / Receivables
Days' sales in receivables =
365 days / Receivables turnover or
365 / inventory turnover
average collection period =
365 days / Receivables turnover
Inventory turnover =
cost of goods sold (COGS) / Inventory
Days' sales in inventory =
365 days / Inventory turnover
On average, a unit of inventory =
365 days / Inventory turnover
Net income =
Addition to RE + Dividends
Earnings per share =
NI / Shares
Dividends per share =
Dividends / Shares
Book value per share =
TE / Shares
Market-to-book ratio =
Share price / book value per share
Price-earnings ratio =
Share price / earnings per share
Sales per share =
Sales / Shares
Price-sales ratio =
price per Share / Sales per share
Did cash go up or down =
Decrease in inventory is a source of cash
Decrease in accounts payable is a use of cash
Increase in notes payable is a source of cash
Increase in accounts receivable is a use of cash
Change in cash = Sources ? Uses =
Average suppliers pay off =
365 / (cost of goods sold / Accounts payable)
Enterprise value-EBITDA multiple =
enterprise value / EBITDA
enterprise value =
Market capitalization + Debt ? Cash
EBITDA =
EBIT + Depreciation & Amortization
equity multiplier EM =
1 + D/E (debt equity)
ROE =
(ROA)(EM)
Net income =
ROE = NI / TE
so =
NI = ROE(TE)
Cash ratio =
Cash / Current liabilities
NWC ratio to total assets =
before that NWC = CA - CL
NWC / Total assets
Debt-equity ratio =
Total debt / Total equity
Equity multiplier =
1 + D/E (Debt-equity ratio)
or total assets / total equity
Total debt ratio =
(Total assets - Total equity) / Total assets
Long-term debt ratio =
Long-term debt / (Long-term debt + Total equity)
PM =
profit margin
NI / Sales
interval measure =
current assets / average daily operating cost
NWC turnover =
sales / NWC
fixed assets turnover =
sales / net fixed assets
total assets turnover =
sales / total assets
times interest earned ratio =
EBIT / interest
cash coverage ratio =
EBIT + depreciation / interest
ROA =
net income / total assets
price-earning ratio =
price per share / earning per share
PEG ratio =
price-earnings ratio / earnings growth rate %
market-to-book-ratio =
market value per share / book value per share
Tobin's Q ratio =
market value of assets / replacement cost of assets
enterprise value-EBITDA ratio =
enterprise value / EBITDA