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    Fsa - Formula Sheet

    Uploaded by

    Justine Jackson
    The document defines formulas for calculating various financial metrics used to evaluate companies' performance and financial health, including return on assets (ROA), return on capital employed (ROCE), earnings per share (EPS), inventory turnover, current ratio, quick ratio, and Z-score. It provides the specific variables and calculations for ROA, disaggregated ROA, ROCE, basic EPS, diluted EPS, and other ratios measuring accounts receivable, accounts payable, cash, current assets, liabilities, debt, and cash flow.

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    Fsa - Formula Sheet

    Uploaded by

    Justine Jackson
    61 views2 pages
    The document defines formulas for calculating various financial metrics used to evaluate companies' performance and financial health, including return on assets (ROA), return on capital employed (ROCE), earnings per share (EPS), inventory turnover, current ratio, quick ratio, and Z-score. It provides the specific variables and calculations for ROA, disaggregated ROA, ROCE, basic EPS, diluted EPS, and other ratios measuring accounts receivable, accounts payable, cash, current assets, liabilities, debt, and cash flow.

    Original Description:

    Financial statement problem.

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    The document defines formulas for calculating various financial metrics used to evaluate companies' performance and financial health, including return on assets (ROA), return on capital employed (ROCE), earnings per share (EPS), inventory turnover, current ratio, quick ratio, and Z-score. It provides the specific variables and calculations for ROA, disaggregated ROA, ROCE, basic EPS, diluted EPS, and other ratios measuring accounts receivable, accounts payable, cash, current assets, liabilities, debt, and cash flow.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views2 pages

    Fsa - Formula Sheet

    Uploaded by

    Justine Jackson
    The document defines formulas for calculating various financial metrics used to evaluate companies' performance and financial health, including return on assets (ROA), return on capital employed (ROCE), earnings per share (EPS), inventory turnover, current ratio, quick ratio, and Z-score. It provides the specific variables and calculations for ROA, disaggregated ROA, ROCE, basic EPS, diluted EPS, and other ratios measuring accounts receivable, accounts payable, cash, current assets, liabilities, debt, and cash flow.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    ROA

    Net Income + (1-tax rate)(Interest Expense) + Min Int in Earnings


    Average Total Assets

    DISAGGREGATED ROA
    ROA = Profit Margin for ROA x Asset Turnover
    Profit Margin FOR ROA = Adjusted net Income / Sales
    Asset Turnover = Sales / Average Total Assets

    ROCE
    Net Income – Preferred Stock Dividends
    Average Common Shareholder’s Equity
    DISAGGREGATED ROCE
    ROCE = Profit margin for ROCE x Assets Turnover x Capital Structure Leverage
    Profit Margin for ROCE = Net Income to Common / Sales
    Assets Turnover = Sales / Average Total Sales
    Capital Structure Leverage = Average Total Assets / Average Common Shareholders’ Equity

    BASIC EPS
    Net Income – Preferred Stock Dividends
    Weighted Average # of Common Shares
    outstanding

    DILUTED EPS
    Net Income – Preferred Stock Dividends + Adjustments for Dilutive Securities
    Weighted Average Number + Weighted Average Number of shares
    of Common Shares Outstanding Issuable rom Dilutive Securities
    ACCOUNTS RECEIVABLE TURNOVER = Net Sales on Account / Average Accounts Receivable
    ACCOUNTS PAYABLE TURNOVER = Purchases / Average Accounts Payable

    CASH TURNOVER = Sales / Average Cash and Cash Equivalents

    CURRENT ASSET TURNOVER = Sales / Average Current Assets

    CURRENT RATIO = Current Assets / Current Liabilities

    DAYS RECEIVABLE OUTSTANDING = 365 / Accounts receivable Turnover

    DAYS INVENTORY HELD = 365 / Inventory Turnover

    DAYS ACOUNTS PAYABLE OUTSTANDING = 365 / Accounts Payable Turnover

    FIXED ASSET TURNOVER = Sales / Average Fixed Assets

    INTEREST COVERAGE RATIO =


    Net Income + Interest Expense + Income Tax Expense + Net Income from Noncontrolling Interests /
    Interest Expense

    INVENTORY TURNOVER = Cost of Goods Sold / Average Inventories

    LIABILITIES TO ASSETS RATIO = Total Liabilities / Total Assets

    LIABILITIES TO SHAREHOLDERS EQUITY = Total Liabilities / Total Shareholders’ Equity

    LONG-TERM DEBT TO LONG-TERM CAPITAL RATIO =


    Long-term Debt / Long-term Debt + Total Shareholders’ Equity

    LONG-TERM DEBT TO SHAREHOLDERS’ EQUITY RATIO = Long-term Debt / Total Shareholders’ Equity

    OPERATING CASH FLOW TO CURRENT LIABILITIES RATIO =


    Cash Flow from Operations / Average Current Liabilities

    OPERATING CASH FLOW TO TOTAL LIABILIES RATIO =


    Cash Flow from Operations / Average Total Liabilities

    QUICK RATIO =
    Cash and Cash Equivalents + Short-Term Investments + Accounts Receivable / Current Liabilities

    Z SCORE = 1.2(Net Working Capital/Total Assets +


    1.4(Retained earnings/Total Assets) +
    3.3(Earnings Before Interest and Taxes/Total Assets) +
    0.6(Market value of Equity/Book Value of Liabilities) +
    1.0(Sales/Total Assets)

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