Formulas V2

Question 1

Earnings per Share (EPS)

Answer 1

of common shares outstanding

(EAT – Preferred dividends paid) /
# of common shares outstanding

Question 2

Price Earnings Ratio (P/E)

Answer 2

Market share price /
EPS

Question 3

Payout Ratio

Answer 3

Common dividends per share /
EPS

Question 4

Market to Book Value (M/B)

Answer 4

Market Value per share /
Book Value per share

Question 5

Common Dividends per Share

Answer 5

Common dividends paid /
# of common shares outstanding

Question 6

Profit Margin

Answer 6

Earnings after tax /
Sales

Question 7

Gross Profit Margin

Answer 7

Gross profit /
Sales

Question 8

Capital Asset Turnover

Answer 8

Sales /
Capital assets

Question 9

Current Ratio

Answer 9

Current assets /
Current Liabilities

Question 10

Quick Ratio

Answer 10

(Current Assets – Inventory) /
Current Liabilities

Question 11

Debt to Total Assets

Answer 11

Total Liabilities /
Total Assets

Question 12

Times Interest Earned

Answer 12

Earnings before interest and taxes /
Interest expense

Question 13

Break Even in Units

Answer 13

FC /
CM per Unit

Question 14

Break Even in Total Sales Dollars

Answer 14

FC /
CM Ratio

Question 15

Target Profit in Units

Answer 15

(FC + Target Profit) /
CM per Unit

Question 16

Target Profit in Total Sales Dollars

Answer 16

(FC + Target Profit) /
CM Ratio

Question 17

Degree of Operating Leverage

Answer 17

CM /
EBIT

Question 18

Degree of Financial Leverage

Answer 18

EBIT /
EBT

Question 19

Degree of Combined Leverage

Answer 19

DOL * DFL

Question 20

Number of Orders per Year

Answer 20

Yearly Units / EOQ

Question 21

Ordering Costs

Answer 21

Number of Orders per Year * Costs per Order

Question 22

Average Inventory

Answer 22

EOQ / 2

Question 23

Carrying Costs

Answer 23

Average Inventory * Carrying Costs Rate

Question 24

Total Costs

Answer 24

Ordering Costs + Carrying Costs

Question 25

Interest Rate

Answer 25

(Interest / Principal) * (365 / Days)

Question 26

Dividend Yield

Answer 26

Common Dividends per Share / Market Value per Share

Question 27

Average Collection Period

Answer 27

Accounts Receivable / (Credit Sales / 365 Days)

Question 28

Inventory Holding Period

Answer 28

Inventory / (Cost of Goods Sold / 365 Day)

Question 29

Accounts Payable Period

Answer 29

Accounts Payable / (Cost of Goods Sold / 365 Day)

Question 30

Book Value per Share

Answer 30

(Shareholders' Equity - Preferred Stock) / Number of Common Shares Outstanding

Question 31

Return on Assets

Answer 31

Net Income / Total Assets

Question 32

Cash Conversion Cycle

Answer 32

Inventory Holding Period + Average Collection Period - Accounts Payable Period

Question 33

EOQ

Answer 33

√ 2S(Annual Demand)O(Ordering Cost per Unit) / C(Carrying Cost)