IX.1 Formulaaaa (performance measures) Flashcards Preview

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Flashcards in IX.1 Formulaaaa (performance measures) Deck (21)
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1

ROI (return on investments)

Net income / Total Assets

2

Residual Income (RI)

Op Income - (Req rate of return x Invested captial)

3

Economic Value added **Important**
(EVA)

Net op profit after tax - weight avg cost of cap x (total assets - current liab)

4

Cash flow ROI

($Flow Op - EconDepr) / Cash invested

5

Gross Margin

Revenue - COGS
(external reporting) DOESNT INCL SGA exps

6

Contribution Margin

Revenue - Variable Costs
(planning purposes)

7

Op Profit Margin

Op Income / Sales

8

Op income is the SAME as EBIT

Op income = EBIT

9

Profit Margin aka (Return on sales)

Net income / Net sales

10

Return on Equity

NI / Common Stkhld equity

11

Dupont ROI

Return on Sales (ROS) x Asset Turnover
ROS aka Prof Margin = NI / Sales
Cap or Asset Turnover = Sales / Total Assets

12

Residual income (RI)

(Op income - Req Rate return) x Invested capital

13

Receivables Turnover

Sales on Acct / Avg A\R

14

Days sales in receiv. (avg collection period)

Avg A\R / avg sales per day

15

Inventory Turnover

COGS / Avg Inventory

16

Fixed asset turnover

sales / avg net fixed assets

17

Current ratio

Current assets / Current liab

18

Quick/Acid test ratio

(CurAss - Inv) / Curr Liab

19

Debt time interest earned (ability to make regular pmts based on earnings)

Op income / interest exp

20

Price earnings (PE) ratio

mkt price per share / EPS
(just remember price TO (over) earnings)

21

Book value per share

CmStk owner equity / # outstanding CmStk shares