This is a draft cheat sheet. It is a work in progress and is not finished yet.
The Income Statement
Sales of Goods |
- Cost of Goods Sold |
= Gross Profit |
- Depreciation |
= EBIT |
- Interest |
= EBT |
- Taxes |
= EAT (Net Income) |
ROE
ROE = |
EAT / Equity |
Tax Burden Ratio = |
EAT / EBT |
Interest Burden Ratio = |
EBT / EBIT |
Operating Profit Margin = |
EBIT / Sales |
Asset Turnover Ratio = |
Sales / Assets |
Equity Multiplier = |
Assets / Equity |
Net Profit Margin = |
EAT / Sales |
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External Financing Needed (EFN)
EFN = ∆NWC + ∆ Fixed Assets - Re |
∆NWC = ∆ Current Assets - ∆ Current Liabilities |
Re = Retained Earnings |
The Growth Equation
∆Current Assets + ∆Fixed Assets = ∆Spontaneous Liabilities + Re + EFN |
∆Sales x g = Sales Increase |
Operating Capital Requirements = ∆NWC + ∆Fixed Assets |
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