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    Fin0008 Managing Business Finance Formulae Sheet: N I, N 0 I, N N I, N 0 I, N N I, N 0 I, N

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    The document contains formulas for calculating various financial ratios and metrics used to evaluate business finance performance. It includes formulas for current ratio, quick ratio, inventory turnover, average age of inventory, average collection period, average payment period, total asset turnover, debt ratio, EBIT, times interest earned, gross profit margin, operating profit margin, net profit margin, earnings per share, return on assets, return on equity, price earnings ratio, book value per share, market to book ratio, dividend yield, EVA, NOPAT, net working capital, operating cycle, cash conversion cycle, cost of giving up cash discount, present value, future value, annuity calculations, initial investment, operating cash flow, terminal cash flow, net

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    Fin0008 Managing Business Finance Formulae Sheet: N I, N 0 I, N N I, N 0 I, N N I, N 0 I, N

    Uploaded by

    bn
    27 views2 pages
    The document contains formulas for calculating various financial ratios and metrics used to evaluate business finance performance. It includes formulas for current ratio, quick ratio, inventory turnover, average age of inventory, average collection period, average payment period, total asset turnover, debt ratio, EBIT, times interest earned, gross profit margin, operating profit margin, net profit margin, earnings per share, return on assets, return on equity, price earnings ratio, book value per share, market to book ratio, dividend yield, EVA, NOPAT, net working capital, operating cycle, cash conversion cycle, cost of giving up cash discount, present value, future value, annuity calculations, initial investment, operating cash flow, terminal cash flow, net

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    Managing_Business_Finance_Formula

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    The document contains formulas for calculating various financial ratios and metrics used to evaluate business finance performance. It includes formulas for current ratio, quick ratio, inventory turnover, average age of inventory, average collection period, average payment period, total asset turnover, debt ratio, EBIT, times interest earned, gross profit margin, operating profit margin, net profit margin, earnings per share, return on assets, return on equity, price earnings ratio, book value per share, market to book ratio, dividend yield, EVA, NOPAT, net working capital, operating cycle, cash conversion cycle, cost of giving up cash discount, present value, future value, annuity calculations, initial investment, operating cash flow, terminal cash flow, net

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    27 views2 pages

    Fin0008 Managing Business Finance Formulae Sheet: N I, N 0 I, N N I, N 0 I, N N I, N 0 I, N

    Uploaded by

    bn
    The document contains formulas for calculating various financial ratios and metrics used to evaluate business finance performance. It includes formulas for current ratio, quick ratio, inventory turnover, average age of inventory, average collection period, average payment period, total asset turnover, debt ratio, EBIT, times interest earned, gross profit margin, operating profit margin, net profit margin, earnings per share, return on assets, return on equity, price earnings ratio, book value per share, market to book ratio, dividend yield, EVA, NOPAT, net working capital, operating cycle, cash conversion cycle, cost of giving up cash discount, present value, future value, annuity calculations, initial investment, operating cash flow, terminal cash flow, net

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    © All Rights Reserved
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    FIN0008 MANAGING BUSINESS FINANCE

    FORMULAE SHEET

    Current ratio = (Current Assets) / (Current Liabilities)


    Quick ratio = (Current Assets – Inventory) / (Current Liabilities)
    Inventory Turnover = COGS / Inventory
    Average Age of Inventory = 365 / (Inventory Turnover)
    Average Collection Period = (Accounts Receivables) / (Net Sales / 365)
    Average Payment Period = (Accounts Payables) / (Annual Purchases / 365)
    Total Asset Turnover = (Net sales) / (Total Assets)
    Debt ratio = (Total Liabilities) / (Total Assets)
    EBIT = Operating Profits
    Times interest earned = EBIT / Interest
    Gross Profit Margin = (Gross Profit) / (Net Sales)
    Operating Profit Margin = EBIT / (Net sales)
    Net Profit Margin = (Earnings available to common shareholders) / (Net Sales)
    = (Earnings available to common shareholders) /
    Earnings per share (EPS)
    (number of common shares)
    Return on Assets (ROA) = (Earnings available to common shareholders) / Assets
    Return on Equity (ROE) = (Earnings available to common shareholders) / Equity
    Price Earnings (P/E) ratio = (Market price per share) / EPS
    Book Value per share = (Common stock equity) / (number of common shares)
    Market/Book (M/B) ratio = (Market price per share) / (Book Value per share)
    Dividend yield = (Dividend per share) / (Market Price per share)
    EVA = NOPAT – (WACC) x (Capital Employed)
    NOPAT = (Operating Profits) x (1 – Tax rate)
    NWC = CA – CL
    OC = AAI + ACP
    CCC = OC – APP
    CCC = AAI + ACP – APP
    % discount 365
    Cost of giving up cash discount =
    100% - % discount × credit period - discount period
    Interest = Principal x Rate x Time
    FVn = PV x (FVIFi,n)
    PV0 = FV x (PVIFi,n)
    FVAn = A x (FVIFAi,n)
    PVA0 = A x (PVIFAi,n)
    FVAn (annuity due) = A x (FVIFAi,n) (1 + i)
    PVA0 (annuity due) = A x (PVIFAi,n) (1 + i)
    PV (perpetuity) =A/i
    Initial Investment = Cost of the new asset + Change in NWC
    OCF = (Revenue – Cost) (1-Tax rate) + (Depreciation) (Tax rate)
    Terminal cash flow = After-tax proceeds from sale of asset + Change in NWC
    Net Present Value (NPV) = PV (Cash Inflows) – PV (Cash Outflows)
    Bond conversion price = (Par Value of Bond) / (Conversion ratio)

    1
    CAPM (Capital Asset Pricing Model) Formula :

    Cost of Common Equity Formula :

    where Ke = Cost of Equity


    d0 = just paid dividend
    d1 = next year’s dividend
    g = constant growth rate of dividend
    P0 = Common Stock price (trading ex -dividend)

    Cost of Preferred Stock Formula =

    where Kp = Cost of Preferred Stock


    DP = Dividend of Preferred Stock
    Pp = Current Preferred Stock Price

    Weighted Average Cost of Capital (WACC) Formula =

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