Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

X Finance 3 > Formulas > Flashcards

Formulas Flashcards

1
Q

Purchase is based on

A

What you need - What you have

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What you need

A

Sales + What you need for end inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

(Gross) Profit

A

Revenues - Cost Of Goods Sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Market to Book Ratio

A

Market Value (per share) / Book Value (per share)

OR

Market Value / Book Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Total Equity

A

common stock + paid in premium + retained earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Goodwill

A

(Price paid per share - book value per share) * Number of shares bought

OR

Total price paid - book value of shares bought

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Book value per share

A

(total equity) / number of outstanding shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Current Ratio

A

current assets / current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Quick Ratio

A

(current assets - inventory) / current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Net working capital

A

current assets - current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Debt ratio

A

Total debt / total assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Debt to equity ratio

A

Total debt / total equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Times interest earned

A

EBIT / Interest charge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Return on Equity (ROE)

A

Annual Profit / Equity * 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Return on Debt (ROD)

A

Annual Interest / Total Debt * 100%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Return on Investment (ROI)

A

Annual EBIT / Total Investment * 100%

17
Q

Margin on Sales

A

EBIT / Sales

OR

Sales Price - Purchase Price * amount of sales

18
Q

Leverage Effect

A

ROE = ROI + [(ROI-ROD) * (Debt / Equity)]

19
Q

Average Collection Period

A

(Accounts Receivables / Annual Sales) * 365

20
Q

Average Inventory Period

A

(Inventory Level / Annual Cost of Sales) * 365

21
Q

Turnover Rate

A

Annual Sales / Total Assets

22
Q

Earnings Per Share (EPS)

A

Net Income / Number of Outstanding Shares

23
Q

Price Earnings Ratio (P/E Ratio)

A

Market Price of a Share / EPS

24
Q

Dividend Yield

A

Dividend per Share / Market Price per Share (at beginning of the year)

25
Q

Total Yield

A

(Dividend per Share + Market Price Change) / Market Price per Share (at the beginning of the year)

26
Q

Dividend Cover

A

Net Earnings / Dividends

27
Q

Pay Out Ratio

A

Dividends / Net Earnings

X Finance 3 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions