Ratios and calculations financial analysis

Question 1

Net working capital

Answer 1

(Current assets - excess cash) - (current liabilities - current debt)

Question 2

Net non-current op. assets

Answer 2

non-cur. op. assets(incl. Deffered tax assets and derivatives) - non-cur., non-interest-bearing op. liabilities.(incl. Deferred tax liabilities and derivatives)

Question 3

NIPAT

Answer 3

investment and interest income * (1-TR)

Question 4

Interest expense after tax

Answer 4

interest expense * (1-TR)

Question 5

NOPAT

Answer 5

P/L + Interest after tax - NIPAT

Question 6

Financial leverage gain

Answer 6

(ROI - (interest exp after tax/debt)) * debt/equity

Question 7

ROE (general)

Answer 7

Profit or loss / equity

Question 8

ROA (return on assets)

Answer 8

profit or loss / total assets

Question 9

Equity multiplier

Answer 9

total assets / equity

Question 10

Profit margin

Answer 10

profit or loss / revenue

Question 11

Asset turnover

Answer 11

revenue / assets

Question 12

ROI (alterntative dupont)

Answer 12

NOPAT / net operating assets * w1 + NIPAT / non-operating investments *w2 = return on net op. assets *w1 + return on non operating investments * w2

Question 13

NOPAT margin

Answer 13

NOPAT / revenue

Question 14

Operating asset turnover(NOA turnover)

Answer 14

revenue / net operating assets

Question 15

Return on net op. assets

Answer 15

NOPAT / net operating assets = NOPAT margin * NOA turnover

Question 16

Return on non op. inv.

Answer 16

NIPAT / non operating investments

Question 17

Receivables turnover

Answer 17

Revenue / Accounts receivable

Question 18

Inventories or payables turnover

Answer 18

Cost of sales or materials / inventories or payables

Question 19

Days’ receivables/payables/inventories

Answer 19

operating days in a year / turnover ratio

Question 20

ROE (alternative dupont)

Answer 20

ROI + (ROI - (interest exp after tax/debt)) * debt/equity = ROI + spread * leverage

Question 21

ROE (traditional dupont)

Answer 21

net profit margin * asset turnover * equitymultiplier

= net profit margin * asset turnover * assets/equity

Question 22

FCFDE

Answer 22

P/L + interest expense after tax - Δ invested capital

Question 23

Block 1 and 2 DCF value

Answer 23

Vdcf = SOM(t=1>T) (FCFE)/(1+r)^t

Question 23

FCFE

Answer 23

FCFDE - interest expense after tax + Δ debt

FCF from operations - interest expense after tax + NIPAT - ΔNOI + ΔDebt
=
P/L - Δ Invested capital + Δ debt

Question 23

Block 1 and 2 value AP

Answer 23

Vap = BV0 + SOM(t=1>T) (p/l - r * BVt-1)/(1+r)^t

Question 24

Block 1 and 2 value APG

Answer 24

Vapg = p/lt1/r + 1/rSOM(t=2>T) (ΔP/L - rΔequityt-1)/(1+r)^(t-1)

Question 25

TV DCF scenario 1

Answer 25

BVET/(1+r)^T

Question 26

TV DCF scenario 2

Answer 26

TV = FCFET/(r*(1+r)^T)

Question 27

TV DCF scenario 3

Answer 27

((1+g)FCFET)/((r-g)(1+r)^T)

Question 28

TV AP scenario 1

Answer 28

TV = 0

Question 28

TV AP scenario 2

Answer 28

TV = APT/(r*(1+r)^T)

Question 29

TV AP scenario 3

Answer 29

TV = ((1+g)APT)/((r-g)(1+r)^T)

Question 30

TV APG scenario 1

Answer 30

(-1 * APT) / (r* (1+r)^T)

Question 31

TV APG scenario 2

Answer 31

0

Question 32

TV APG scenario 3

Answer 32

(gAPT)/(r(r-g)*(1+r)^(T-1))

Question 33

beta of equity

Answer 33

βE = (1+((1-T)D-NOI)/EβNOA + NOI/EβNOI - ((1-t)D/E * βD

Question 34

CAPM

Answer 34

r = rf + β * ERP

Question 35

Cash conversion cycle

Answer 35

Days’ Inventories + Days’ Receivables - Days’ Payables (time from paying supplier until receiving money from customer)

Question 36

sustainable growth rate

Answer 36

ROE * (1 - payout ratio)

Question 37

Financial leverage

Answer 37

Debt/equity

Question 38

Financial spread

Answer 38

Return on business assets - effective interest rate after tax = ROI - (interest after tax / debt) (as in the class formula

Question 39

return on business assets when using alternative dupont

Answer 39

(NIPAT + NOPAT) / ( net working capital + net non current operating assets + investment assets)

Question 40

MV tax shield - shortcut

Answer 40

MV TS = t * BV Debt

Question 41

MV tax shield - actual

Answer 41

(sum of discounted products of tax rates and interest expenses for projection years)+ TV = (t(1+g)IT)/((r-g)*(1+r)^T)