Formulae Sheet
Current ratio | Current assets |
| Current liabilities | |
| Quick ratio or acid test | Cash + marketable securities + net receivables |
| Current liabilities | |
| Current cash debt coverage | Net cash provided by operating activities |
| Average current liabilities | |
| Receivables turnover | Net sales |
| Average net trade receivables | |
| Average collection period As your report is for two months you need to adjust the days from one year to the number of days of the months you are analysing | 365 days |
| Receivables turnover | |
| Inventory turnover | Cost of goods sold |
| Average inventory | |
| Average Inventory days As your report is for two months you need to adjust the days from one year to the number of days of the months you are analysing | 365 days |
| Inventory turnover | |
| Debt to total asset | Total liabilities |
| Total assets | |
| Times interest earned | Profit before income tax + interest expense |
| Interest expense | |
| Cash debt coverage | Net cash provided by operating activities |
| Average total liabilities | |
| Free cash flow | Net cash provided by operating activities – Capital expenditures |
| Return on ordinary shareholders’ equity | Profits available to ordinary shareholders |
| Average ordinary shareholders equity | |
| Return on assets | Profit*1 |
| Average total assets | |
| Profit margin | Profit*1 |
| Net sales | |
| Asset turnover | Net sales |
| Average total assets | |
| Gross profit margin | Gross profit |
| Net sales | |
(Formulae Sheet continued on next page)
Formulae sheet (continued)
| Operating expenses to sales | Operating expenses |
| Net sales | |
| Cash return on sales | Net cash provided by operating activities |
| Net sales | |
| Earnings per share (EPS) | Profit available to ordinary shareholders |
| Weighted average number of ordinary shares | |
| Price-earnings | Share price |
| Earnings per share | |
| Payout | Cash dividends |
| Profit | |
| Capital expenditure | Net cash provided by operating activities |
| Capital expenditure | |
| Depreciation–straight line method | Cost – residual value of asset |
| Estimated useful life | |
| Depreciation- diminishing balance (reducing balance) method | Carrying amount of asset x depreciation rate |
| Depreciation-units of production (units of use) method | Depreciation cost per unit x units of production |
*1 Note that various interpretations are used for profit e.g. earnings before interest and tax (EBIT), earnings before tax, abnormal, net interest (interest revenue – interest expenses), depreciation and amortization (EBITDA).
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