Scribd
Upload
80 views2 pages

ECN320 - FINAL - Formula Sheet

This document provides a formula sheet for the final exam in ECN320 Introduction to Financial Economics. It lists formulas for various ratios used to analyze a company's financial statements. The ratios are divided into five sections: I) Short-Term Solvency or Liquidity Ratios, II) Long-Term Solvency or Financial Leverage Ratios, III) Asset Utilization Turnover Ratios, IV) Profitability Ratios, and V) Market Value Ratios. The last section also includes a formula for calculating the present value of a tax shield on capital cost allowance.

Uploaded by

clerry29
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
80 views2 pages

ECN320 - FINAL - Formula Sheet

This document provides a formula sheet for the final exam in ECN320 Introduction to Financial Economics. It lists formulas for various ratios used to analyze a company's financial statements. The ratios are divided into five sections: I) Short-Term Solvency or Liquidity Ratios, II) Long-Term Solvency or Financial Leverage Ratios, III) Asset Utilization Turnover Ratios, IV) Profitability Ratios, and V) Market Value Ratios. The last section also includes a formula for calculating the present value of a tax shield on capital cost allowance.

Uploaded by

clerry29
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

ECN320 Introduction to Financial Economics

Final Exam: Formula Sheet

II. Long-Term Solvency or Financial Leverage


I. Short-Term Solvency or Liquidity Ratios Ratios
Current assets Total assets  Total equity
Current ratio  Total debt ratio 
Current liabilities Total assets
Current assets  Inventory Total debt
Quick ratio  Debt/equity ratio 
Current liabilities Total equity
Cash Total assets
Cash ratio  Equity multiplier 
Current liabilities Total equity
Net working capital
Net working capital  Long-term debt ratio 
Long-term debt
Total assets Long-term debt  Total equity
Current assets
Interval measure  EBIT
Average daily operating costs Times interest earned 
Interest
EBIT  Depreciation
Cash coverage ratio 
Interest

III. Asset Utilization Turnover Ratios IV. Profitability Ratios

Cost of goods sold Net income


Inventory turnover  Profit margin 
Inventory Sales

365 days Net income


Days' sales in inventory  Return on assets (ROA) 
Inventory turnover Total assets
Net income
Receivables turnover 
Sales Return on equity (ROE) 
Accounts receivable Total equity

365 days Net income Sales Assets


Days' sales in receivables  ROE   
Receivables turnover Sales Assets Equity

Sales
NWC turnover 
NWC
Sales
Fixed asset turnover 
Net fixed assets
Sales
Total asset turnover 
Total assets
ECN320 Introduction to Financial Economics
Final Exam: Formula Sheet

V. Market Value Ratios


Price per share
Price-earning ratio 
Earnings per share

PEG ratio = P/E ratio/Expected future earnings growth rate*100


Market value per share
Market-to-book ratio 
Book value per share

EV/EBITDA  [Market value of equity  Market value of interest-bearing debt 


Cash(and cash equivalent)]/EBITDA

IdTc 1  0.5r S n dTc 1


PV tax shield on CCA    
d  r 1 r d  r (1  r ) n

You might also like