FAR FORMULAS Flashcards
(27 cards)
What is the formula for ending allowance for credit losses?
Ending allowance for credit losses = beginning allowance + credit loss expense - write-offs + recoveries
What is the formula for estimated ending allowance?
Estimated ending allowance = ending accounts receivable * estimated uncollectible %
What is accounts payable turnover?
Accounts payable turnover = COGS / average accounts payable
What is total asset turnover?
Total asset turnover = net sales / average total assets
What is accounts receivable turnover?
Accounts receivable turnover = Sales / average accounts receivable
What is inventory turnover?
Inventory turnover = COGS / average inventory
What is current ratio?
Current ratio = current assets / current liabilities
What is quick ratio?
Quick ratio = (cash + marketable securities + receivables) / current liabilities
What is cash ratio?
Cash ratio = (cash + marketable securities) / current liabilties
What is operating cash flow ratio?
Operating cash flow ratio = cash flow from operations / current liabilities
What is times interest earned?
Times interest earned = EBIT / interest expense
What is days sales in accounts receivable?
Days sales in accounts receivable = ending AR / (sales / 365)
What is days in inventory?
Days in inventory = ending inventory / (COGS / 365)
What is days of payables outstanding?
Days of payables outstanding = ending accounts payable / (COGS / 365)
What is cash conversion cycle?
Cash conversion cycle = days sales in AR + days in inventory - days payables outstanding
What is gross profit margin?
Gross profit margin = (sales - COGS) / sales
What is operating margin?
Operating margin = EBIT / sales
What is EBIT?
EBIT = sales - COGS - SG&A - depreciation
What is profit margin?
Profit margin = net income / sales
What is contribution margin?
Contribution margin = sales - variable costs
What is return on assets?
Return on assets = net income / average total assets
What is DuPont ROA?
DuPont ROA = (net income / sales) * (sales / average total assets)
What is return on equity?
Return on equity = net income / average total equity
What is dividend payout?
Dividend payout = (dividend per share * shares outstanding) / net income
