School

Northeastern UniversityDepartment

Finance & InsuranceCourse Code

FINA 2201Professor

Ma LinlinChapter

18This

**preview**shows half of the first page. to view the full**2 pages of the document.**Formula Sheet

FINA 2201

(Note: This sheet does not list many formulas that are important for the exam)

1. Current Ratio =

sLiabilitieCurrent

AssetsCurrent

2. Quick Ratio =

sLiabilitieCurrent

InventoryAssetsCurrent

3. Debt Ratio =

Total Liabilities

Total Assets

4. Times Interest Earned =

OperatingIncome

Interest Expense

5. Days Sales Outstanding =

365/

Sales

ReceivableAccounts

6. Inventory Turnover Ratio =

Inventory

Sales

7. Fixed Asset Turnover=

setsNetFixedAs

Sales

8. Total Asset Turnover=

sTotalAsset

Sales

9. Operating Profit Margin =

OperatingProfit

Sales

10. Net Profit Margin =

Sales

IncomeNet

11. Basic Earning Power=Operating Profits/Total Assets

12. ROA =

AssetsTotal

IncomeNet

13. ROE =

Net Income

TotalEquity

14. DuPont Equation: ROE=

Net Income Sales TotalAssets

Sales TotalAssets Equity

15. Equity Multiplier =

1

1

Total Assets

Equity DebtRatio

16. Earnings per Share (EPS) =

17. P/E ratio =

SharePer Earnings

Price Market

18. M/B ratio= Market price/Book value per share

19. AFN= Change in Total Assets - Change in Spontaneous Liabilities - Change in Retained Earnings

goutstandin sharescommon of No.

ers shareholdto available income Net

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