FIN 357 Exam 1 Formula Sheet Print your name here: Current ratio = Current assetsCurrent liabilitiesQuick ratio = Current assets − InventoryCurrent liabilitiesCash ratio = CashCurrent liabilitiesTotal debt ratio =Total assets − Total equityTotal assetsDebt-to-equity ratio = Total debtTotal equityEquity multiplier = Total assetsTotal equityTimes interest earned ratio =EBITInterest expenseCash coverage ratio = EBIT +(Depreciation and amortization expense )Interest expenseInventory turnover =Cost of goods sold expenseInventoryReceivables turnover = SalesAccounts receivableDays sales in inventory = DSI = 365 daysInventory turnover = InventoryCost of goods sold expense ÷ 365Days sales in receivables = DSO = 365 daysReceivables turnover= Accounts receivableSales ÷ 365Days Payables Outstanding = DPO = Accounts payableCost of goods sold expense ÷ 365Cash Conversion Cycle = DSI + DSO – DPOTotal asset turnover = SalesTotal assetsCapital intensity = Total assetsSalesNet profit margin = Net incomeSalesEBITDA margin = EBITDASales= EBIT + Depreciation expense + Amortization expenseSalesOperating profit margin = EBITSales= Operating profitSalesGross profit margin = Gross profitSalesReturn on assets = ROA = Net incomeTotal assetsReturn on Equity = ROE = Net incomeTotal equity= (Net incomeSales) × (SalesTotal assets) × (Total assetsTotal equity)Earnings per share = EPS = Net incomeShares outstandingtmp5xnfd9t6 Fall 2017 Page 1 of 3Price-to-earnings ratio = PE ratio = Market capitalizationNet income = Price per shareEarnings per shareMarket capitalization = Price per share × Shares outstandingMarket-to-book ratio = Market value per shareBook value per shareEnterprise value = EV = Market capitalization + Market value of interest-bearing debt – CashEnterprise value multiple = EVEBITDADividend payout ratio = Cash dividendsNet incomeRetention ratio = Plowback ratio = Addition to retained earningsNet incomeExternal funds needed = EFN = Total assetsSales × Sales – Spontaneous liabilitiesSales × Sales – NPM × Projected sales × (1 – d)Effective Annual Rate = EAR = (1+rm)m−11 + R = (1 + r) × (1 + h)r ¿ R−hFV = C0 × erT FV =PV×(1+rm)T×mFVA=PMT×(1+rm)T×m−1rmFVADUE=(PMT×(1+rm)T×m−1rm)×(1+rm) PVP = C1rPVP = C1r - gPV =FV×1(1+rm)T ×mPVA=PMT×1−(1(1+rm)T ×m)rmPVA = C1×(1−(1+g1+r)Tr−g)tmp5xnfd9t6 Spring 2017 Page 2 of