Final Examination Formula Sheet

GSBA 510 Formula Sheet: Student Name______________________________ Core ______
1. Accoun ng Equa on: Total Assets = Total Liabili es plus Total Stockholders Equity.
2. Accounts Receivable Turnover: Net Credit sales divided by average accounts receivable
3. Adjusted EBITDA: EBITDA plus other non-cash expenses, minus non-cash income, plus any
one- me expenses or losses, minus any one- me gains or income.
4. Adjusted EBIT: EBIT minus non-opera ng income plus non-opera ng expenses
5. Asset Turnover: Net revenue divided by Average total assets
6. Break-even: Revenues minus expenses = 0
7. Break- even ( Total Revenue): Total Fixed Cost divided by contribu on margin per unit.
8. Break- even ( units): Total Fixed Cost divided by contribu on margin per unit.
9. Capital expenditures: purchases of property plant and equipment.
10. Capital Turnover: Net revenue divided by Average total shareholder equity
11. Carrying amount of borrowings: Outstanding principal balance of borrowings plus
premiums minus discounts.
12. Cash to Current Assets ra o: ( Cash and equivalents plus Marketable securi es) divided by
total current assets
13. Cash to Current Liabili es ra o: ( Cash and equivalents plus Marketable securi es) divided
by total current liabili es
14. Cash returned to common shareholders: Dividends paid to common shareholders plus
current year purchases of Treasury stock
15. Common Shareholder Equity: Total Stockholder equity minus par value of preferred stock.
16. Contribu on Margin: Revenue minus variable costs. This may be prepared on a price and
cost per unit basis or on a total dollar basis.
17. Contribu on Margin Ra o (CMR): Contribu on Margin divided by Sales. This may be
prepared on a price and cost per unit basis or on a total dollar basis.
18. Cost of Goods Sold Equa on: Beginning inventory plus Purchases minus Ending Inventory =
Cost of Goods Sold.
19. Coverage ra o: Earnings metric divided by interest expense or fixed charges
20. Current ra o: Current assets divided by Current Liabili es
21. Days Sales in Inventory : 365 divided by Inventory turnover
22. Days Sales Outstanding: Ending Accounts receivable divided by Daily net revenue
23. Debt Equity ra o: Total liabili es divided by Total stockholder equity
Page 1 of 3
24. Degree of Opera ng Leverage:
a. (using financial statements): Percentage change in opera ng income/ Percentage
change in net revenue
b. (using contribu on margin): contribu on margin divided by opera ng income (net
income)
25. Depreciable basis: Cost of purchase minus salvage value
26. Dividend Pay-out ra o: Common dividends divided by Net Income Available to common
shareholders
27. Dividend Per Share: Common dividends divided by Weighted average common shares
outstanding
28. Dividends Pre-tax: ( AKA the amount of pre-tax earnings to pay for addi onal dividends.)
The dividend amount is divided by ( 1 minus effec ve income tax rate).
29. Dividend Yield: Common dividends divided by market price per share of common stock
30. Earnings before taxes: (EBT) Net Income plus income tax expense
31. Earnings before Interest and Taxes (EBIT): Net income plus income tax expense, plus
interest expense -minus interest income.
32. Earnings Metric: Used for Non-GAAP and other metrics. Can be a variety of things and must
be specified by those seeking analysis. Common earnings metrics include: Net income, EBT,
EBIT, EBITDA , Adjusted EBIT, and Adjusted EBITDA.
33. EBITDA: EBIT plus deprecia on and amor za on.
34. Earnings Yield: Net Income Available to common shareholders divided by market price per
share of common stock (or 1/PE ra o)
35. Earnings per share: Net Income Available to common shareholders divided by Weighted
average common shares that are outstanding.
36. Earnings to Fixed charges: (Earning metric plus those fixed charges deducted from the
earnings metric) divided by fixed charges.
37. Economic Value Added: Actual Earnings metric minus (Investment amount x hurdle rate)
38. Effec ve Income Tax Rate: Income Tax Expense divided by Earnings Before Income Taxes
39. Free Cash Flow: Cash Flow from Opera ng Ac vi es minus dividends paid on preferred stock
minus capital expenditures.
40. Fixed Charges: The sum of interest expense plus lease expense plus pre-tax earnings
required to pay minimum level of preferred dividends.
Page 2 of 3
41. Gross Profit: Sales ( revenue) minus cost of goods sold.
42. Gross Margin: ( aka Gross Profit Margin) Gross Profit divided by sales
43. Growth Capital: The excess of capital expenditures over maintenance capital.
44. Inventory Turnover: Cost of goods sold divided by Average inventory

45. Leverage ra o: Liability measure divided by something. That something can be items on the
balance sheet or can be an earnings metric.
46. Market Capitaliza on: Outstanding common shares x market price per common share.
47. Mark up: The difference between cost per unit and sales per unit.
48. Mark up Percentage: Markup divided by cost per unit.
49. Net Borrowings: Borrowings minus cash and cash equivalents
50. Net Income Available to Common shareholders: Net Income minus preferred dividends
51. Net Opera ng Income: EBIT minus non-opera ng income plus non-opera ng expenses
52. Opera ng Cash Flow Ra o: Cash Flow from Opera ons divided by Total Current Liabili es
53. Opera ng Efficiency Ra o: Opera ng expenses divided by Net revenue
54. Profit Margin (aka Net Profit Margin): Net Income divided by Net revenue
55. Price Earnings Mul ple: Price per common share divided by earnings per share.
56. Quick Ra o: ( Cash + Cash equivalents plus current marketable securi es plus accounts
receivable) divided by Current Liabili es.
57. Reten on ra o: 1-dividend pay-out ra o
58. Return on Assets: Net Income divided by Average total assets
59. Return on Equity: Net Income divided by Average total shareholder equity
60. Return on Common Equity: Net Income Available to common shareholders divided by
Average common shareholder equity.
61. Times Interest Earned: (aka TIE Ra o) Earnings Metric divided by Gross Interest expense
62. Unlevered Free Cash Flow: Free Cash Flow plus a er tax interest expense
63. Working Capital: Current Assets minus Current Liabili es
Page 3 of 3

Final Examination Formula Sheet

Uploaded by

Copyright:

Available Formats

Final Examination Formula Sheet

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Examination Formula Sheet

Uploaded by

Copyright:

Available Formats

GSBA 510 Formula Sheet: Student Name________________________ Core

44. Inventory Turnover: Cost of goods sold divided by Average inventory

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.