Formulas Flashcards
(25 cards)
Earnings per Share (EPS)
of common shares outstanding
(EAT – Preferred dividends paid) /
# of common shares outstanding
Price Earnings Ratio (P/E)
Market share price /
EPS
Payout Ratio
Common dividends per share /
EPS
Market to Book Value (M/B)
Market Value per share /
Book Value per share
Common Dividends per Share
Common dividends paid /
# of common shares outstanding
Free Cash Flow (FCF)
: Cash from operating activities
– Capital Expenditures
– common dividends paid
– preferred dividends paid
Increase in Retained Earnings
: EAT
– Preferred Dividends Paid
– Common Dividends Paid
Profit Margin
Earnings after tax /
Sales
Gross Profit Margin
Gross profit /
Sales
Inventory Turnover
Cost of goods sold /
Inventory
Total Asset Turnover
Sales /
Total Assets
Current Ratio
Current assets /
Current Liabilities
Quick Ratio
(Current Assets – Inventory) /
Current Liabilities
Debt to Total Assets
Total Liabilities /
Total Assets
Times Interest Earned
Earnings before interest and taxes /
Interest expense
Vertical Analysis
Account / Sales
or
Account / Total assets
Horizontal Analysis
(Current year – prior year) /
Prior year
Break Even in Units
FC /
CM per Unit
Break Even in Total Sales Dollars
FC /
CM Ratio
Target Profit in Units
(FC + Target Profit) /
CM per Unit
Target Profit in Total Sales Dollars
(FC + Target Profit) /
CM Ratio
Degree of Operating Leverage
CM /
EBIT
Degree of Financial Leverage
EBIT /
EBT
Degree of Combined Leverage
DOL * DFL
