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28 Cards in this Set
- Front
- Back
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debt service coverage
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=(free operating cash flow + interest) / (interest + annual principal repayment)
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Debt Payback Ratio
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total debt / discretionary cash flow
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Effective Duration
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Effective Convexity
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value of embedded call option
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vcall = vnoncallable - vcallable
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value of embedded put option
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vput = vputable- vnonputable
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conversion value
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market price of stock x conversion ratio
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market conversion pnce
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market price of convertible bond / conversion ratio
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market conversion premium per share
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market conversion price - market price
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market conversion premium ratio
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market conversion premium per share / market price of common stock
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Premium Payback Period
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market conversion premium per share / favorable income difference per share
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Favorable Income Difference per Share
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[ coupon interest- (conversion ratio x dividends per share) ] / conversion ratio
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Premium Over Straight Value
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(market price of convertible bond / straight value) - 1
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single monthly mortality rate
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1 - (1 - conditional prepayment rate) ^ 1/12
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mortgage prepayment
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SMM x (mortgage balance at beginning of month m - scheduled principal payment for month m)
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debt-to-service coverage ratio
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net operating income / debt service
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loan-to-value ratio
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current mortgage amount / current appraised value
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bond-equivalent yield
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2 [ (1 +monthly cash flow yield) ^6 - 1]
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ROE
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= net income / stockholders' equity
= (net income / sales) x (sales/total assets) x (total assets / stockholders' equity) |
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Current Ratio
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current assets / current liabilities
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Acid-Test Ratio
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(current assets - inventories) /current liabilities
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long-term debt-to-capitalization ratio
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long term debt / (long term debt + minority interest + shareholders' common and preferred equity)
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total debt-to-capitalization ratio
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(current liabilities +long term debt) / (current liabilities + long term debt + minority interest + shareholders' common and preferred equity)
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coverage ratios
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=EBIT / annual interest expense
=EBITDA / annual interest expense |
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S & P cash flow ratios:
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=funds from operations / total debt
or =funds from operations / capital spending requirements =(free operating cash flow + interest) / interest |
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Free operating cash flow
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Net income + Depr - Inc in NWC - CAPEX
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Prefinancing cash flow
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Discretionary cash flow - acquisitions + asset disposals + other sources (uses)
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Discretionary cash flow
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Free operating cash flow - cash dividends
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