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Finance and Financial Accounting Formulas
Some Finance and Financial Accounting Formulas to help me formulate and account for different financial principles
32
Finance
Undergraduate 2
05/10/2011

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Term
Net income = (EBIT - ___)(1 - ___ ____)
Definition
INT, tax rate
Term
_________ ____ ____ = NOPAT + Dep
Definition
operating cash flow
Term
_____ = EBIT(1 - tax rate)
Definition
NOPAT
Term
NOPAT
Definition
Net Operating Profit After Tax
Term
EBIT
Definition
Earnings before interest and taxes
Term
Net cash flow = ___ ______ + (Dep + Amort)
Definition
net income
Term
MVA = (shares outstanding)(_____ _____) - (total common equity)
Definition
stock price
Term
MVA
Definition
Market Value Adjustment
Term
___ = EBIT(1 - tax rate) - (investor supplied capital)(percentage cost of capital)
Definition
EVA
Term
EVA
Definition
Economic Value Added
Term
Current assets = cash + marketable __________ + inventory + accounts __________
Definition
securities, receivable
Term
Current ratio = current ______/current ___________
Definition
assets, liabilities
Term
Basic _______ _____ = EBIT/Total assets
Definition
earning power
Term
_________ ________ ratio = sales/inventory
Definition
inventory turnover
Term
times interest earned = ____/interest charges
Definition
EBIT
Term
Quick ratio = (current assets-_________)/current liabilities
Definition
inventory
Term
fixed asset turnover = _____/net fixed assets
Definition
sales
Term
days _____ ___________ = (receivables x 365)/annual sales
Definition
sales outstanding
Term
EBITDA coverage ratio
Definition
(EBITDA + Lease payments)/(interest charges + principal payments + lease payments)
Term
debt ratio = total debt/total ______
Definition
assets
Term
total asset turnover = _____/total assets
Definition
sales
Term
___ ______ ______ = net income/sales
Definition
net profit margin
Term
_____ ________ _____ = price per share/earnings per share
Definition
price earnings ratio
Term
______/____ ratio = market price per share/book price per share
Definition
market/book
Term

______ __ _____ ______ =

net income/total assets =

(net profit margin)(total asset turnover)

Definition
return on total assets
Term

______ __ ______ ______ =

net income/common equity =

(net profit margin)(total asset turnover)(1/[1-debt ratio])

Definition
return on common equity
Term
_________ _______ _______ = (old account balance)[(new sales)/(old sales)]
Definition
projected account balance
Term
______ __ _________ ________ = (net profit margin)(sales) – dividends
Definition
change in retained earnings
Term
__________ _____ _______ = projected assets – (projected liabilities + projected equity)
Definition
additional funds needed
Term
________ _____ = (annual interest payment)/(current price)
Definition
current yield
Term
_____-__-_________ = current yield + capital gain/loss
Definition
yield-to-maturity
Term
__________ (equity) = total dollar amount of retained earnings available/fraction of equity in the capital structure
Definition
breakpoint
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