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    FL - CFA - Formula - Sheet - FRA Landscape (SS) 5

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    Raj Sharma

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    FL - CFA - Formula - Sheet - FRA Landscape (SS) 5

    Uploaded by

    Raj Sharma
    4 views2 pages

    Original Title

    FL_CFA_Formula_Sheet_FRA Landscape (SS)5

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    4 views2 pages

    FL - CFA - Formula - Sheet - FRA Landscape (SS) 5

    Uploaded by

    Raj Sharma

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    FINANCIAL REPORTING AND ANALYSIS

    (Net income − Preferred dividends)


    BASIC EPS: Weighted average number of shares
    LIQUIDITY RATIOS
    outstanding (WASO)
    Ratio Numerator Denominator
    CALCULATION OF DILUTED EPS:
    Current ratio Current assets Current liabilities
    Security Formula
    Cash + Short-term marketable
    Net income Quick ratio Current liabilities
    Convertible preferred shares WASO + New common shares that would have
    investments + Receivables
    been issued at conversion Cash + Short-term marketable
    Cash ratio Current liabilities
    Net income – Preferred dividends + interest (1 − Tax rate) investments
    Convertible debt WASO + New common shares that would
    have been issued at conversion Cash + Short-term marketable
    Defensive interval ratio Daily cash expenditures
    investments + Receivables
    Net income − Preferred dividends
    Stock options and warrants WASO + Net increase in common shares Cash conversion cycle
    DOH + DSO - Number of days of payables
    (net operating cycle)

    FCFF = NI + NCC + Int(1 - Tax rate) - FCInv - WCInv


    FCFF = CFO + Int(1 - Tax rate) - FCInv
    FCFE = CFO - FCInv + Net borrowing

    ACTIVITY RATIOS SOLVENCY RATIOS


    Ratio Numerator Denominator Ratio Numerator Denominator
    Inventory turnover Cost of goods sold Average inventory Debt-to-assets ratio Total debt Total assets

    Days of inventory on hand (DOH) 365 Inventory turnover Debt-to-capital ratio Total debt Total debt + total shareholders’ equity

    Receivables turnover Revenue Average receivables Debt-to-equity ratio Total debt Total shareholders’ equity

    Days of sales outstanding (DSO) 365 Receivables turnover Financial leverage ratio Average total assets Average total equity

    Payables turnover Purchases Average trade payables Interest coverage EBIT Interest payments

    Number of days of payables 365 Payables turnover Fixed charge coverage EBIT + Lease payments Interest payments + Lease payments

    Working capital turnover Revenue Average working capital

    Fixed asset turnover Revenue Average net fixed assets

    Total asset turnover Revenue Average total assets


    PROFITABILITY RATIOS EXTENDED DUPONT DECOMPOSITION OF ROE
    Ratio Numerator Denominator EAT EBT EBIT Revenue Assets
    ROE= × × × ×
    EBT EBIT Revenue Assets Equity
    Gross profit margin Gross profit Revenue
    Net profit margin
    Operating profit margin Operating income Revenue
    ROE = Tax burden × Interest burden × EBIT margin × Asset Turnover × Leverage
    Pre-tax margin Earnings before tax Revenue

    Net profit margin Net income Revenue VALUATION RATIOS


    Operating ROA Operating income Average total assets
    Ratio Numerator Denominator
    ROA Net income Average total assets Price to earnings Price per share Earnings per share

    Return on total capital EBIT Short- and long-term debt + Equity Price to cash flow Price per share Cash flow per share

    ROE Net income Average total equity Price to sales Price per share Sales per share
    Return on common Net income -
    Preferred dividends Average common equity Price to book value Price per share Book value per share
    equity

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