Ambition Learning Solutions CCRAT

Formulas
Activity Ratios:
Receivables Turnover=

Annual Sales
Average Receivables

Days of sales outstanding=

Cost of goods sold

average inventory

Inventory Turnover=

Days of inventory on hand=

PayablesTurnover=

365
Receivables Turnover

365
inventory turnover

Purchases
Averagetrades payable

No. of days of payables=

Total asset turnover=

356
payables turnover ratio

Revenue
Average total assets

Average net
Revenue
asset Turnover=
asset

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Working capital Turnover=

Revenue
Average working capital

Liquidity Ratio:
Current Ratio =

Quick Ratio=

Cash Ratio=

Current Asset
Current Liabilities

Cash+ Marketable securities + Receivables

Current Liabilities

Cash+ Marketable Securities

Current Liabilities

Defensive Internal=

Cash+ Marketable securities+ Receivables

Average daily expenditure

CashConversion Cycle= Daily Sales + Days of inventory Number of days

Out standing
on hand
of payable

)(

)(

Solvency Ratios:
DebtEquity=

Total Debt
'
Total Shareholde r s Equity

DebtCapital=

Total Debt
'
Total Debt +Total Shareholde r s Equity

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Debt Asset=

Total Debt
Total Assets

Financial Leverage=

Interest Coverage=

Average Total Assets

Average Total Equity

Earnings before interetstaxes

Interest Payments

Charge Coverage=

Earnings before interest taxes+ Lease Payments

Interest Payments+ Lease Payments

Profitability Ratios
Net Profit Margin=

Net Income
Revenue

Gros s Profit Margin=

Gross Profit
Revenue

Operating Profit Margin=

Pretax Margin=

Operating Income
EBIT

Revenue
Revenue

EBT
Revenue

Returno n Asset ( ROA )=

Net Income
Average Total Assets
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Returnon Asset ( ROA )=

Net Income+ Interest expense ( 1taxrate )

Average Total Assets

Operating Return on Assets=

Returnon Total Capital=

Return on Equity=

Operating Income
EBIT

Average Total Assets Average total Assets

EBIT
Average Total Capital

Net Income
Average Total Equity

Net Income available

Net IncomePreferred Devidend

Return on Equity=
= C ommon
Average Common Equity
Average Common Equity
Free Cash Flow to Firm:

FCFF=Net Income + Noncash charge+ [ Interest expense ( 1Tax rate ) ] Capital Investment WorkingCapital In
FCFF=Cash Flow Operations+ [ Interest expense ( 1Taxrate ) ] Capital Investment

Free Cash Flow from Equity:

FCFE=Cash Flow OperationsCapital Investment + Net Borrowing

Common Statement Ratios=

Income Statement Account

Sales

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Common Sheet Ratios=

Balance Sheet Account

Total Assets

Asset
Leverage
Original DuPont Equation: ROE= Net Pro fit
Margin Turnover
Ratio

)(

)(

Extended DuPont Equation:

Income EBT
EBIT
Revenue
Total Assets
( NetEBT
)( EBIT )( Revenue
)( Total
)(
Assets Total Equity )

ROE=

Basic EPF =

Net IncomePreferred Dividends

Weighted averageno . of common shares outstanding

(
Diluted EPS=

SharesConversion of

SharesConversion of

Shares Stock Option

issuable
Convertible Convertible
Net IncomePreffered +
( 1t )
Preferred +
Debt
Dividend
dividend
Interest

)(

Weighted
Average + ( Conv . pfd . Shares ) + ( Conv . Debt ) + ( )
Shares

Coefficients of Variation:

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CV Sales=

Standard Deviation of Sales

Mean Sales

CV Operating Income=

CV of Net Income=

Standard Deviation of operating Income

Mean Operating Income

Standard Deviation of net income

Mean Net Income

Inventories:
Ending Inventory=Beginning Inventory + PurchasesCOGS

Current Cost of Inventory ( FIFO ) =LIFO Inventory + LIFO reserve

COGSFIFO =COGS LIFO (Ending LIFO reservebeginning LIFO reserve)

Long-Lived Assets:
StraightLine Depreciation=

Cost SalvageValue
Useful Life

( Useful2 Life ) ( Cost Accumulated Depreciation )

DDB Depreciation=

Average Age Years=

Accumulated Depreciation
Annual Depreciation Expence

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Average age as a Percentage=

Average Depreciable Life=

Remaining Useful Life=

Accumulated Depreciation
Ending Gross Investment

Ending Gross Investment

Annual Dep reciation Expense

Ending Net Investment

Annual Depreciation Expense

Deferred Taxes:
Income Tax Expense=Taxes Payable+ DTL DTA

Debt Liabilities
Interes Expense= the Market Rate
at Issue

the Balance Sheet value

of the Liability at
the beginning of the Period

Performance Ratios
Ca sh flow Revenue=

CFO
Net Revenue

Cashreturnon Asset=

CFO
Average Total Assets

CashreturnonEquity=

CFO
Average Total Equity

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CashIncome=

CFO
Operating Income

Cash flow per Share=

CFOPreferrence Dividends
Weighted average no . of Common Shares

Coverage Ratios
Debt Coverage=

CFO
Total Debt

Interest Coverage=

Reinvestment=

CFO+ Interest Paid +Taxes Paid

Interest Paid

CFO
Cash Paid for Long Term Assets

Debt Repayment =

CFO
Cash for Longterm Debt Repayment

Dividend Payments=

CFO
Dividends Paid

CashOutflows
CFO
InvestingFinancing= InvestingFinancing Activities

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