FI3300 Corporate Finance - Exam 1 Formulas
FI3300 Corporate Finance - Exam 1 Formulas FI 3300
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This 5 page Study Guide was uploaded by Mariah Law on Monday September 19, 2016. The Study Guide belongs to FI 3300 at Georgia State University taught by Fendler in Fall 2016. Since its upload, it has received 135 views.
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Date Created: 09/19/16
FORMULAS Net Sales -COGS Gross Profit -operating exp. -depreciation exp. Operating Profit -interest exp. Profit before taxes -tax Net Income The Sum of all of the NCF statements must = the change in cash NCF for Operating Act. Net Income + depreciation Increase in A = - Decrease in A = + Increase in L = + Decrease in L = - *remember, only A for this class are AR and Inventory Only L for this class are accruals and AP _____________________________________ NCF for Op. Act. NCF for Investing Act. Change in Gross Fixed Assets ***always a negative _____________________________ NCF for Invest. Act. **Change in GFA = change in Net Fixed Assets + depreciation NCF for Fin. Act. Notes Payable Long-term debt Common stock Add. Pd. In cap. -payment of dividends NCF for Fin Act. *remember increase in L = + & decrease in L = - Finding dividends: *Change in RE = Net Income - dividends Liquidity Ratios Current ratio = Current A/ current L Quick ratio = (Current A – Inventory)/ Current L OR = (cash + AR)/ Current L Net Working Capital ratio = Net Working capital/ Total A *working capital = current assets; Net WC = CA/ L) Total Asset turnover = sales/ Total A Fixed Asset turnover = sales/ Net Fixed Assets Average Collection Period = ( AR/ annual credit) x 360 Inventory turnover = I / COGS Average pay. Period = (AP/COGS) x 360 Profitability Ratios Gross Profit Margin = gross profit/sales Gross profit = sales - COGS Operating profit margin = operating profit/sales Net Profit margin = NP/sales EPS = Net Income/ # common shares outstanding ROA = Net income / A ROE = Net Income / Equity Market ratios P/E = stock price/EPS M/B = book value of E/ # shares outstanding DPS = total dividend paid/ # shares outstanding Div payout ratio = DPS/EPS Dividend yeild = DPS/stock price Market to Book ratio = stock price/ book value per share ______________________________________________ Ending Inventory = Beginning Inventory + Purchases – COGS Net Income = Operating profit – interest exp. - taxes paid COGS = # units sold x cost/unit Net Sales = Gross sales – RA Straight line depreciation = (original cost – salvage value)/ est. Life Total shareholder's equity = additional paid in capital + common stock + RE
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