L1 Formulas Flashcards
Memorisation (138 cards)
1
Q
Operating Income
A
2
Q
Degree of Operating Leverage (DOL)
A
3
Q
Degree of Financial Leverage (DFL)
A
4
Q
Degree Total Leverage (DTL)
A
DOL*DFL
5
Q
WACC
A
6
Q
Margin Call
A
7
Q
Maximum Leverage Ratio
A
8
Q
ROE (DuPont)
A
9
Q
Cash Conversion Cycle
A
10
Q
Quick Ratio
A
Cash Ratio excludes receivables and Current Ratio includes receivables and inventory.
11
Q
Inventory Turnover Ratio
A
12
Q
Days of inventory On Hand (DOH)
A
13
Q
Receivables Turnover
A
14
Q
Days of Sales Outstanding (DSO)
A
15
Q
Payables Turnover Ratio
A
15
Q
Number of Days Of Payables (DOP)
A
16
Q
Total Asset Turnover
A
16
Q
Depreciation Expense (units of production)
A
17
Q
Depreciation Expense (double declining)
A
18
Q
Depreciation Expense (straight line)
A
19
Q
Effective Tax Rate
A
20
Q
Income Tax Expense
A
21
Q
DTL (for asset)
A
22
Q
DTL (for liability)
A
23
Interest Expense on Lease (+ principal repayment & ending lease liability)
23
Impairment of long-lived asset (IFRS)
24
Impairment of long-lived asset (USGAAP)
25
1) Estimated Total Useful Life, 2) Estimated Total Useful Life, 3) Estimated Age of Equipment, 4) Estimated Remaining Life
26
Net Book Value
27
Ending Inventory and COGS Adjustment (LIFO to FIFO)
28
Inventory Value (US GAAP) (LIFO vs FIFO)
29
Inventory Value (IFRS)
30
Free Cash Flow to Financing (FCFF)
31
Free Cash Flow to Equity (FCFE)
32
Ending Inventory
33
Ending Retained Earnings
33
Working Capital
34
Diluted EPS (convertible preferred stock)
35
Diluted EPS (convertible debt)
36
Diluted EPS (options)
37
Diluted EPS (treasury stock method)
37
Basic EPS
38
Ending Shareholders Equity
39
Net Working Capital
40
FCF
41
Return on Invested Capital (ROIC)
42
Operating Leverage
43
Modigliani-Miller Capital Structure (Vl, re, E, Vl)
44
Static Trade Off Theory of Capital Structure
45
Forward Rate (ERC)
46
1) Real ER, 2) % Change in Real ER, 3) % Change in BC.
47
Herfindahl-hirschman Index (HHI)
48
Concentration Index
49
Marginal Cost (Eco)
50
1) AVC, 2) AFC, 3) ATC
51
Log-Lin / Lin-Log / Log-Log
52
Components of Interest Rate r
53
Nominal Interest Rate
54
Harmonic Mean
55
Maturity Premium
56
Geometric Mean
57
Relationship Between Means (Geo, Arith, Harm)
58
Annualised Returns (Weekly Monthly Daily)
59
Sharpe Ratio
60
Expected Return of Ri
60
Capital Market Line Equation
61
Portfolio Standard Deviation
62
M^2 Alpha
63
Multi-Stage Dividend Discount Model
64
ModDur (given MacDur)
64
% Change PV Full (Using AnnModDur) (estimate)
65
ModDur (not given MacDur)
66
Approx MacDur (given ModDur)
67
Money Duration
68
Price Value of a Basis Point (PVBP)
69
MacDur of a Perpetual Bond
(1+r)/r
70
MacDur of Floating Rate Bond (FRN)
71
Justified Forward PE
72
Price of Money Market Instrument (discount basis)
73
Money Market Discount Rate
74
Price of Money Market Instrument (add-on basis)
75
Add-on Rate
76
Miller-Modigliani (proposition summary table)
77
Ideal Currency (3 properties)
78
Trade Balance
79
Forward PE
80
Correlation of Returns
81
Variance X (probabilities)
82
Slope Coefficient (b1 hat)
83
Correlation
84
Beta (of stock)
85
Investor Utility
86
Diversification Ratio
87
Sharpe Ratio
88
Capital Asset Pricing Model
89
Treynor Ratio
90
M-Squared
91
Jensen's Alpha
92
Fundamental/Forward/Justified PE Ratio
93
Forward price (continuous & discrete compounding, and with/without additional costs).
94
Value of a Forward Contract @ Expiration/T=0/T=t (long & short party)
95
FX Forward Contract (price @ initiation)
S0*e^[(rf-rd)*T]
96
Implied Forward Rate (IFR)
97
Multiple of Invested Capital
98
Haircut (repos)
99
Put-Call Parity
100
Mean Absolute Deviation (MAD)
101
Periodic Settlement Value (swap contract)
102
Option Exercise Value (put/call)
103
Time Value of Option
TV (option) = Option Premium - Exercise Value
104
Call and Put Option Bounds
105
Put-Call Forward Parity
106
Leveraged Return
107
Sample Variance/SD
108
Sample Covariance
109
Variance of Random Variable
110
Conditional Variance of Random Variable
111
Portfolio Variance
112
Covariance of Returns
113
Covariance (joint probability)
114
Safety First Ratio
115
Standard Error of Sample Mean
116
Sum of Squares Total (SST)
117
Sum of Squares Regression (SSR)
118
Sum of Squares Error (SSE)
119
Coefficient of Determination (R^2)
120
Mean Square Regression (MSR)
121
Mean Square Error (MSE)
122
F-distributed T-Statistic
123
Standard Error of Estimate (SEE)
124
Budget Surplus / Deficit
125
Utility on Investment
126
Capital Allocation Line (CAL)
127
Market Price of Risk
128
Capital Market Line (CML)
129
Capital Asset Pricing Model (CAPM)
130
Market Model
131
Total Portfolio Risk
