List of formulas used in Different Financial Calculations
(From Lesson #1 to 22)
Balance Sheet Identity
Gross Working Capital
Net Working Capital
Current Ratio
Quick Ratio
Cash Ratio
Total Debt Ratio
Debt–Equity ratio
Equity Multiplier
Interest Coverage Ratio
Cash Coverage Ratio
Inventory turnover Ratio
Day’s sales in Inventory
Receivables turnover
Day’s Sales in Receivables
Payables Turnover
Total Assets turnover
Capital Intensity Ratio
Profit Margin Ratio
Return on Assets
Return on Equity
Earning Per Share
Price-Earning Ratio
Book Value
Mark-to-Book Ratio
The du-pont identity
Dividend Payout ratio
Retention ratio
Internal Growth Rate
Sustainable Growth Rate
Simple interest rate
Compound interest rate
Future value
Present value
Present value of annuity
Future value of annuity
Annuity Due
Present value of perpetuity
Effective annual interest rate
Assets ≡ Liabilities + Stockholder’s Equity
Total current assets
Current assets – Current liabilities
Current assets / Current liabilities
Current assets – Inventory / Current liabilities
Cash / Current Liabilities
Total Assets -Total Equity / Total Assets
Total Debt / Total Equity
Total Assets / Total Equity or 1 + Debt-Equity ratio
EBIT /Interest
EBIT + Depreciation / Interest
Cost of Goods Sold / Inventory
365 days / Inventory Turnover
Sales / Accounts Receivables
365 days / Receivable Turnover
Cost of Goods Sold / Accounts payables
Sales / Total Assets
Total Assets / Sales
Net Income / Sales
Net Income / Total Assets
Net Income / Total Equity
Net Income / Shares Outstanding
Price Per Share / Earnings per share
Total equity / No.of shares outstanding
Market value per share / Book value per share
ROE = Profit Margin × Total Assets Turnover × Equity Multiplier
Cash Dividends / Net Income
Retained Earnings / Net Income
(ROA × ƅ) / (1- (ROA×ƅ)
(ROE × ƅ) / (1- (ROE×ƅ)
Pxrxt
P x r^t
PV×(1 + r)^t
FV × (1+r) ^t
C × {1- 1 / (1+r)^t }/r
C × (1+r)^t- 1) / r
Ordinary annuity value x (1 + r)
PV = C / r
(1 + Quoted rate / m)m – 1
Present Value of Bond C × {1- 1/ (1+r) ^t}/r + F/ (1+r) ^t
Fisher Equation 1 + R = (1 + r) x (1 + h)