Financial Management Exam #1 Formula Sheet – Flashcards
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NOPAT (Net Operating Profit After Taxes)
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EBIT(1-T)
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NCF (Net Cash Flow)
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Net income + depreciation
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OCF (Operating Cash Flow)
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NOPAT + depreciation
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Current Ratio
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Current assets / current liabilities
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Quick Ratio
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(Current assets - inventory) / current liabilities
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Inventory Turnover
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Sales / inventory
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DSO (Day Sales Outstanding)
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Accounts receivable / (sales / 365)
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Fixed Asset Turnover
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Sales / fixed assets
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Total asset Turnover
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Sales / total assets
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Debt Ratio
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Total debt / total assets
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Equity Ratio
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Total equity / total assets
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Equity Multiplier
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Total assets / total equity
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TIE (Times Interest Earned)
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EBIT / interest expense
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Profit Margin
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Net income / sales
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ROA (Return on Assets)
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Net income / total assets
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ROE (Return on Equity)
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Net income / total equity
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P/E Ratio (Price Earnings)
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Price per share / earnings per share
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CF Per Share (Cash Flow)
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Net income + depreciation / shares outstanding
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Price Per Cash Flow
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Price per share / CF per share
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Market to Book
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Price per share / book value per share
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DuPont Equation
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ROA = profit margin * total asset turnover
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Extended DuPont Equation
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ROE = profit margin x total asset turnover x equity multiplier
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Debt to total capital
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Total debt / (total debt + equity)
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Total invested capital
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Debt + equity
