Formula Sheet for Mos 2310

FORMULA SHEET

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Assets = Liabilities + Shareholders’ equity Revenues - Expenses = Income Cash flow from assets = Cash flow to bondholders + Cash flow to shareholders Current ratio = Current assets/Current liabilities Current assets − Inventory Quick ratio = ______________________ Current liabilities Cash ratio = (Cash + Cash equivalents)/Current liabilities Net working capital to total assets = Net working capital/Total assets Interval measure = Current assets/Average daily operating costs Total debt ratio = [Total assets - Total equity]/Total assets Debt/equity ratio = Total debt/Total equity Equity multiplier = Total assets/Total equity Long-term debt Long-term debt ratio = _________________________ Long-term debt + Total equity Times interest earned ratio = EBIT/Interest Cash coverage ratio = [EBIT + Depreciation]/Interest Inventory turnover = Cost of goods sold/Inventory Days’ sales in inventory = 365 days/Inventory turnover Receivables turnover = Sales/Accounts receivable Days’ sales in receivables = 365 days/Receivables turnover NWC turnover = Sales/NWC Fixed asset turnover = Sales/Net fixed assets Total asset turnover = Sales/Total assets Profit margin = Net income/Sales Return on assets = Net income/Total assets Return on equity = Net income/Total equity P/E ratio = Price per share/Earnings per share Market-to-book ratio = Market value per share/Book value per share Dividend payout ratio = Cash dividends/Net income EFN = Increase in total assets - Addition to retained earnings = A(g) - p(S)R × (1 + g) EFN = -p(S)R + [A - p(S)R] × g EFN = -p(S)R + [A - p(S)R] × g g = pS(R)/[A - pS(R)] ROA × R Internal growth rate = ___________ 1 − ROA × R

[2.1] [2.2] [2.3] [3.1] [3.2] [3.3] [3.4] [3.5] [3.6] [3.7] [3.8] [3.9] [3.10] [3.11] [3.12] [3.13] [3.14] [3.15] [3.16] [3.17] [3.18] [3.19] [3.20] [3.21] [3.22] [3.23] [4.1] [4.2] [4.3] [4.4] [4.5]

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