financial ratios in class examples? Flashcards
1
Q
NOWC (net operating working capital)`
A
current assets - (current liabilities - notes payable)
2
Q
operating income
A
net sales - operation costs - depreciation
3
Q
net income
A
current retained earnings - previous RE = change in RE, take this number and PLUS dividend paid
4
Q
debt to achieve target ratio
A
target % x(times) assets
5
Q
PE (price earning)
A
price per share / EPS (earning per share)
6
Q
profit margin
A
net income / sales
7
Q
ROE (return on equity)
A
net income / equity
8
Q
EPS (earning per share)
A
Net income / shares outstanding
9
Q
ROA (return on asssets)*
A
net income / total assets
10
Q
enterprise value
A
market capitalization + market value of debt - cash equivalents
11
Q
DuPont System w ROE
A
PM (Profit margin) x TATO (Total asset turnover) x equity multiplier
