Financial Statement Formula & Ratio

Question 1

Shares Outstanding

Answer 1

Issued Stock - Treasury Stock

Question 2

Fully Diluted Share Outstanding

Answer 2

Basic + Warrants + Capital Notes + Convertible Preferred Stock

Question 3

Market Capitalization

Answer 3

Number of Shares Outstanding x Share Price

Question 4

Enterprise Value

Answer 4

Market Capitalization + Current Portion of Long Term Debt + Non-Current Portion of Long Term Debt + Book Value of Preferred Stock + Book Value of Minority Interest - Cash and Short Term Investments

Question 5

Gross Profit

Answer 5

Sales - Cost of Goods Sold

Question 6

Operating Expense

Answer 6

R&D + SG&A + Rent Expense + Pension and Retirement Expense

Question 7

Operating Income or Income Before Interest & Taxes (EBIT)

Answer 7

Revenue - COGS - Operating Expense

Question 8

Income Before Income Tax (EBT)

Answer 8

EBIT - Net Interest Expense

Question 9

Net Income

Answer 9

Gross Profit - Net Expenses (operating and non-operating including tax)

Question 10

Net Income Attributable to Equity Holders of the Parent Company

Answer 10

Total Comprehensive Income - Income Attributable to Non-Controlling Interest

Question 11

Basic EPS

Answer 11

Net Income Attributable to Equity Holders of the Parent Company / Average Basic Outstanding Shares

Question 12

Diluted EPS

Answer 12

Net Income Attributable to Equity Holders of the Parent Company / Average Fully Diluted Outstanding Shares

Question 13

Interest Expense

Answer 13

Operating Interest Expense + Non-Operating Interest Expense

Question 14

Cashflow from Operations

Answer 14

Net Cash Generated from Operations - Income Tax Paid + Interest Received

Question 15

Net Increase (Decrease) in Cash & Cash Equivalents

Answer 15

Cashflow from Operations + Cashflow from Investing + Cashflow from Financing

Question 16

Total Current Assets

Answer 16

Sum of All Current Assets

Question 17

Total Assets

Answer 17

Total Current Asset + Total Non-current Asset

Question 18

Total Liabilities

Answer 18

Total Current Liability + Total Non-Current Liability or Total Assets - Shareholder Equity

Question 19

Capital Stock

Answer 19

Number of Shares Issued x Par Value per Share or Common Stock + Preferred Stock

Question 20

Common Stock

Answer 20

Total Equity - Preferred Stock - Additional Paid-in Capital - Retained Earnings + Treasury Stock

Question 21

Additional Paid-in Capital

Answer 21

(Issue Price – Par Value) x Shares Outstanding

Question 22

Retained Earnings

Answer 22

Beginning Retained Earnings + Net Income - Dividends

Question 23

Shares Outstanding

Answer 23

Issued Stock - Treasury Stock

Question 24

Net Working Capital (broad)

Answer 24

Current Asset - Current Liabilities

Question 25

Net Working Capital (for FCF calculation)

Answer 25

Accounts Receivable + Inventory – Accounts Payable

Question 26

Change in NWC

Answer 26

Current Period NWC - Previous Period NWC

Question 27

Capital Expenditure

Answer 27

Acquisition of PP&E (found in cashflow statement) or PP&E Current Period - PP&E Previous Period + Depreciation of Current Period

Question 28

Free Cash Flow to Firm (FCFF)

Answer 28

EBIT(1-Tax Rate) + Depreciation - Capital Expenditure - Increase in NWC (know as invested capital method) or Net Income + Non-cash Expense - Increase in Working Capital - Capital Expenditure

Question 29

Non-Cash Expense

Answer 29

Depreciation + amortization + stock-based compensation + impairment charges + gains/losses on investments

Question 30

NOPAT or Net Operating Profit After Tax

Answer 30

EBIT x (1-Tax Rate)

Question 31

Gross Profit Margin

Answer 31

Gross Profit / Revenue

Question 32

Operating Margin

Answer 32

EBIT / Revenue

Question 33

Pretax Margin

Answer 33

EBT / Revenue

Question 34

Net Profit Margin

Answer 34

Net Income / Revenue

Question 35

Free Cash Flow Margin

Answer 35

FCF / Revenue

Question 36

Return on Asset

Answer 36

Net Income / Average Total Asset

Question 37

Return on Total Asset

Answer 37

EBIT / Average Total Asset

Question 38

Return on Equity (Generic)

Answer 38

Net Income / Total Shareholder's Equity

Question 39

Return on Equity (Du Pont)

Answer 39

Net Profit Margin x Asset Turnover x Equity Multiplier

Question 40

Asset Turnover

Answer 40

Revenue / Average Total Asset

Question 41

Equity Multiplier

Answer 41

Total Asset / Total Shareholder's Equity

Question 42

Return on Capital Employed

Answer 42

EBIT / (Total Asset - Total Current Liabilities)

Question 43

Return on Total Capital

Answer 43

EBIT / (Short-Term Debt + Long-Term Debt + Total Shareholder's Equity)

Question 44

Total Capital

Answer 44

Short-term Debt + Long-term Debt + Shareholder's Equity

Question 45

Dividend Yield

Answer 45

Annualized Dividends Per Share / Stock Price

Question 46

Earning's Yield

Answer 46

EPS / Stock Price

Question 47

Receivables Turnover

Answer 47

Revenue / Average Account Receivables

Question 48

Inventory Turnover

Answer 48

Revenue / Average Inventory

Question 49

Fixed Asset Turnover

Answer 49

Revenue / Average PP&E

Question 50

Working Capital Turnover

Answer 50

Revenue / (Total Current Asset - Total Current Liabilities)

Question 51

Current Ratio

Answer 51

Total Current Asset / Total Current Liabilities

Question 52

Quick Ratio

Answer 52

(Total Current Asset - Inventory) / Total Current Liabilities

Question 53

Cash Ratio

Answer 53

Cash & Cash Equivalent / Total Current Liabilities

Question 54

Debt to EBITDA Ratio

Answer 54

Debt (Total or Net Debt) / EBITDA

Question 55

Interest Coverage Ratio

Answer 55

EBIT / Interest Expense

Question 56

Cashflow to Debt Ratio

Answer 56

Cashflow from Operations / Total Debt

Question 57

Cash Dividend Coverage Ratio

Answer 57

Cash Dividend / (Net Income - Required Dividend for Preferred Shares)

Question 58

Debt to Equity Ratio

Answer 58

Debt (Total Debt or Long-term Debt) / Total Shareholder's Equity

Question 59

Total Debt to Total Asset Ratio

Answer 59

Total Debt / Total Asset

Question 60

Price to Earnings Ratio

Answer 60

Stock Price / EPS

Question 61

PEG Ratio

Answer 61

PE Ratio / EPS Growth Rate

Question 62

Dividend Yield

Answer 62

Annualized Dividends Per Share / Stock Price

Question 63

Payout Ratio

Answer 63

Total Cash Dividends Paid / Net Income

Question 64

EV to EBITDA Ratio

Answer 64

Enterprise Value / EBITDA

Question 65

Equity Value

Answer 65

Enterprise Value - Debt and Debt Equivalents - Noncontrolling Interest - Preferred Stock + Cash and Cash Equivalents

Question 66

Weighted Average Cost of Capital

Answer 66

[Equity Proportion x Cost of Equity] + [Debt Proportion x Cost of Debt x (1-Tax Rate)]

Question 67

Cost of Equity (CAPM)

Answer 67

Risk Free Rate + [Beta x (Excess Market Risk Premium)]

Question 68

Cost of Debt

Answer 68

[(Risk Free Rate + Credit Risk) x (1 - Tax Rate)] or [Interest Expense Rate*(1- Tax Rate)]