List of formulas

Profit = Revenue (or sales) – Expenses

Total assets = Total liabilities + Total shareholders’ equity

Net working capital = Current assets - Current liabilities

Change in cash balance = Ending cash balance – Beginning cash balance

Simple interest for one period = Present Value (PV0) × Annual interest rate (i)

FVn (Future value using Simple Interest)  PV 1  in 

1
PV0 (Present value using Simple Interest)  FVn 
(1  in )
m n
FVn (Compound amount)  i 
 PV 1  
 m

FVn 
m n
PV0 (Present value)  i 
1  
 m

m
EAR (effective annual rate of interest)  i 
 1    1
 m

72 Rule n = 72/interest rate

EAR (continuous compounding)

= (e quoted rate) – 1

Rate (cost of promissory note finance)


/

Cash conversion Cycle (CCC) = Inventory Days + Accounts Receivable Days – Accounts Payable Days

Current Assets
Current Ratio
Current Liability

Current Assets Inventory

Quick (Acid-test) ratio
Current Liability
Accounts Receivable Days Accounts receivable Accounts receivable

(average collection period) Average daily sales Annual credit sales / 365 days
Annual credit sales
Accounts receivable turnover
Accounts receivable
Inventory Inventory
Inventory Days (Day’s sales in inventory)
Average daily COGS Annual COGS/365 days
COGS
Inventory Turnover
Inventory
Accounts payable Accounts payable
Accounts Payable Days Outstanding
Average daily COGS Annual COGS/365 days

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 Total Liabilities
Debt ratio
Total Assets
Total Liabilities
Debt- to- Equity ratio
Total Equity
Operating profit EBIT
Interest coverage ratio
Interest Expense
sales
Total Asset turnover
Total Assets
sales
Fixed Asset turnover
Net propert, plant and equipment
Gross Profit
Gross profit margin (GPM)
Sales
Operating profit EBIT
Operating profit margin (OPM)
Sales
Net Profit
Net profit margin
Sales
Operating profit EBIT
Return on Assets (ROA) Total Assets
Operating profit margin Total Asset turnover
Net Profit
Return on Equity (ROE)
Ordinary Equity
Return on Equity (ROE) Net Profit sales Total Assets
 
(DuPont Analysis) Sales Total Assets Ordinary Equity

Market price per share

Price – earnings ratio
Earning per share

Market price per share Market price per share

Market -to- Book ratio Book value per share Ordinaryshareholders equity

Ordinaryshares outstanding

GDP Y C I G NX
Real GDP Real GDP

Economic Growth Rate  100
Real GDP

Nominal GDP
GDP deflator  100
Real GDP
Number of years to double
70 / growth rate
(Economic growth rate and the rule of 70)
Number of unemployed
Unemployment rate  100
Labour force
Labour force
Labour force participation rate  100
Working age population
Expenditures in the current year
Consumer Price Index (CPI)  100
Expenditures in the base year
CPI CPI
Inflation rate  100
CPI
Bank Multiplier 1/L

Yield guaranteed return /market value

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