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33 Cards in this Set
- Front
- Back
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Straight line depreciation method |
Expense per year=(cost-residual)/useful years |
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Double declining balance method |
Expense per year= net book value x 2/useful years |
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Units of production method |
Depreciation rate= (cost-residual)/life in units Depreciation expense= depr rate x units produced that year |
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Cash Flow from Operations |
Net Income +Depreciation and amortization + losses -gains +decreases in CA -increases in CA +increases in CL -decreases in CL +stock option expense = OCF |
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Quality of Income Ratio |
OCF/net income |
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Capital Acquisitions Ratio |
OCF/cash needed for PPE (/capex) |
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Free Cash Flow |
OCF -capex -dividends |
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Earnings per Share EPS |
Net income (-preferred dividends)/ avg outstanding shares |
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Dividend yield (%) |
DPS/market price per share |
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Dividend payout |
DPS as % of EPS |
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Current ratio |
Current assets/current liabilities |
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Quick ratio |
Quick assets/current liabilities Quick assets= cash&equiv + net receivables |
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Working capital |
Current assets - current liabilities |
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Net debt to equity ratio (%) |
Total debt - cash&equiv/SE Total debt= ST debt incl. CP + CPLTD + LT debt |
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ROE return on equity |
Net Income/avg SE |
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ROA return on assets |
Net income/avg total assets = asset turnover (sales/assets) x return on sales (net income/sales) Return on sales = NP margin |
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RoE DuPont |
ROE = ROA x Leverage NP/avgSE = Sales/avgAssets x NP/sales x assets/avgSE |
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Asset replacement ratio |
Capex/depreciation |
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Fixed asset turnover |
Net sale/avg net fixed assets Avg nfa = avg PP&E |
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Accounts receivable turnover |
Net credit sales/avg net receivables |
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Avg age of accounts receivable |
Days in year/accounts receivable turnover =days in year/(net credit sales/avg net receivables) |
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Inventory turnover |
CoGS/avg inventory |
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Accounts payable turnover |
CoGS/avg accounts payable |
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Interest cover |
EBIT/interest expense Or EBITDA/interest expense |
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12 month total return (%) |
Estimaged dividend yield + est share price change potential |
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PV (stock price) with flat dividend |
Current dividend rate (D)/required rate of return (K) This is the sum of discounted expected future cash flow |
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Discount rate |
Expected rate of return =required rate of return =risk free nominal interest rate +risk premium =real interest rate + expected inflation + risk premium |
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Valuing of growinf company |
P=D x (1+g)^1/(1+k)^1 + ... + D x (1+g)^n/(1+k)^n g=dividend growth rate k=required rate of return D= current dividend rate If n is infinite: P=D/(k-g) =sum of discounted expected future CF |
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Earnings multiples |
P/E, PEG (1year forward P/E /5year forward EPS growth), relative P/E |
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EBITDA multiples |
EV/EBITDA, EV/sales |
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Book value multiple |
P/B |
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Bad Debt booking |
End of year: Bad debt expense (+E,-SE) xxx Allowance for doubtfl acc (+XA, -A) xxx Specific account Allowance for doubtf acc (-XA,+A) xx Accounts receivable (-A) xx |
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Inventory costing methods |
-Specific identification -FIFO -LIFO -weighted average |
