Beruflich Dokumente
Kultur Dokumente
Debt/Equity = TD/TE
Profit margin is a measure of the firms operating efficiency how well it controls costs
Total asset turnover is a measure of the firms asset use efficiency how well does it manage its assets
Equity multiplier is a measure of the firms financial leverage
Unlike MVA focuses on managerial effectiveness in a given year, EVA is an estimate of a businesss true economic profit for the year.
Ratios are not very helpful by themselves; they need to be compared to something
Time-Trend Analysis
There is no underlying theory, so there is no way to know which ratios are most relevant
Globalization and international competition makes comparison more difficult because of differences in accounting regulations
Extraordinary events
FV = PV(1 + r)t
PV = FV / (1 + r)t
When we talk about discounting, we mean finding the present value of some future amount.
When we talk about the value of something, we are talking about the present value unless we specifically indicate that we want the future
value.
r = (FV / PV)1/t 1
t = ln(FV / PV) / ln(1 + r)
The rule of 72
A quick way to estimate how long it will take to double your money. # years to double = 72 / r where r is a percent.