Flashcards in FAR-Formulas Deck (11):
What is the formula for Inventory Turnover?
Cost of goods sold / Average inventory
What is the formula for Gross Margin?
Sales - COGS
What is the formula for Working Capital?
Current Assets - Current Liabilities.
What is the formula for Earnings Per Share?
Net income / average outstanding common shares
What is the formula for the PE Ratio?
Stock Market Price / Earnings Per Share
What is the formula for the Quick Ratio? (Also know as Acid Ratio.)
(Current Assets - Inventory)/Current Liabilities
What is the current ratio?
Current Assets/Current Liabilities
What is formula for the Number of Days’ Sales in Average Inventories?
(Average inventory at cost/COGS)*365
365 / (Cost of Goods Sold/ Avg Inventory)
How is the debt to equity ratio calculated?
Debt to equity = Total liabilities /
Common stockholder’s equity
*equity is in dollars
How is Diluted EPS Calculated?
(Profit or loss attributable to common equity holders of parent company
+ After-tax interest on convertible debt + Convertible preferred dividends)
(Weighted average number of common shares outstanding during the period
+ All dilutive potential common stock)