Financial Ratios

Free Cash
FCFF = (NOPAT + Dep/Amort) - (CAPEX + NOWC)

FCFE = (NI + Dep/Amort) - (CAPEX + NOWC + Debt Repayment) - (PS Div + PS Redemption +
New PS Issued)

NOWC = (CA - Spontaneous Liab)

Liquidity Ratios
Current Ratio = CA / CL

Quick Ratio = (CA - Invt) / CL

Cash Ratio = Cash / CL

AR Turnover = Credit Sales / Ave AR

Days Outstanding = 360 / Turnover

Inventory Turnover = COGS / Ave Invt

FA Turnover = Sales / Ave FA

Total Asset Turnover = Sales / Ave TA

AP Turnover = Credit purchase / Ave AP

Debt Ratios
Debt ratio = TL / TA

Equity Ratio = SHE / TA

Debt to equity = TL / SHE

Debt to Capital or Long term debt ratio = Interest Bearing L / (interest bearing L + SHE)

Times interest Earned = EBIT / Interest

EBITDA Coverage = (EBITDA +Lease Payment) / (Interest+ Lease Payment + (Principal / 1 -

Tax))

Fixed Payment Coverage = (EBIT + Lease Payment) / Interest+ Lease Payment + ((Principal -
PS div) / 1-Tax)

Equity Multiplier = TA / SHE; 1 - Debt to equity Ratio; 1 / Equity ratio

Profitability Ratio
Gross Margin = GP / Sales
Operating Profit = Operating profit / sales

Net profit = NI / sales

ROA = NI / Ave TA

ROE = NI / Ave SHE; ROA * Leverage; GPM * TA Turnover * Leverage

BVPS = (SHE - PS) / Shares

EPS = (NI - PS div) / Ave Share

DPR = (DPS / EPS); DIvidend paid/Net Income

RR = 1 - DPR; GPM / ((1/(1+Debt ratio)) * ROE)

Return on Investment = NOPAT / (Ave Debt + Ave SHE)

Basic Power Earnings = EBIT / TA

Price Earnings = MV / EPS

Market/Book = MV/BVPS

Dividend Yield = DPS / MV