PHYSICS 102 Lecture Notes - Lecture 11: Capital Structure, Net Income, Nopat
Document Summary
Free operating cf / total debt = (ffo ce +/- increase in wc) / total debt. Return on equity = net income before taxes / equity. Return on investment = ebit / total assets. Return on sales = net income before taxes / sales. Turnover of receivables = sales / total receivables. Equity ratio = equity / (equity + debt) Gearing = total liabilities / equity + liabilities. Dynamic gearing = (total liabilities liquid funds) / cf. Asset coverage a = equity / non-current assets >= 1. Acid test ratio = current assets inventories / current liabilities. Earnings per share = profit/ loss (after tax) / weighted average number of shares. Ce = fixed assets + wc = equity + pension provisions + bank loans. Wc = inventories + total receivables + advance payments trade liabilities advance receivables. Dio = inventories * 365 / cost of conversion. Dpo = trade liabilities *365 / material expenses.
