Formula:

CVP: Cost Volume profit:

 Contribution Margin: revenues – variable costs (amount of variable cost)

 Contribution margin per unit: unit selling price – variable cost per unit
or
contribution margin / Number of unit sold

 Breakeven Point:
Unit: Fixed Cost / Contribution Margin unit
General: Fixed Cost / Contribution Margin ratio

 Expected profit: (fixed cost + target operating income) / contribution margin ratio
(%)

 Margin of safety in unit: Expected sales in units – Breakeven units

 Margin of Safety in Value: Expected revenues – Breakeven Revenue

Operating Profit: Sales – Cost Of Good Sold – Depreciation & Amortization + Inv (or ∆ Inv)

Operating Profit  EBIT; without depreciation & Amortization = EBITDA

Components Used = Component open – component closed

Operating Cash Flow = EBITDA - ∆ WCR

Working Capital = Current Asset – Current Liabilities

Residual Income= Operating Profit – (min* required rate of return x Operating asset)

Return on Investment = Profit / Average Operating Asset

Growth Margin = Sales – Cost of Sales

EBIT take in consideration Research and development, marketing, restructuring Growth

Margin just cost of sales

Return on Asset = Net Income / TOT Asset

Return on Equity = Net Income / Equity

Asset Turnover Ratio = Turnover / Assets

WCR in days:

Inventory = (Inventory / Cost of good sold) x 365

Receivable = (Receivable / Revenue) x 365
Payable = (Payable / Cost of goods sold) x 365

Working Capital = Current Asset – Current Liabilities

Market Ratio = Market price of common stock / Earnings per share

Dividend Payout Ratio = Dividend per Share / Earnings per share

Total return = Dividend Yield + Capital Appreciation

Rate of return = ((Current Value – Initial Value) / Initial value) x 100

Return on Capital Employed = Net operating profit / Capital Employed

Capital employed = LT debt + Equity

Cost of fundings equity = Equity x expected rate of return

Invested capital = Debt + Equity

Dividend Yield = Total Dividend / Market capitalization

Or
Dividend per share / Share price

Dupont Analysis =

Return on Invested Capital = Ebit x (1- Tax rate) / Equity + Financial Debt (short and long)

Solvency ratio = Equity / Tot Asset