Ratios for FAR Exam

ROI

NI / Average Total Assets (Investment) OR NI / Invested Capital

PM on Sales

ROA / Asset Turnover

Total Sales

Avg. Assets · Asset Turnover

Price to Sales

Current Share Price / Sales Per Share

ROA

NI / Avg. Total Assets OR PM on Sales · Asset Turnover

Inventory Turnover

COGS / Avg. Inventory OR 365 / Inventory Conversion

Inventory Conversion

365 / Inventory Turnover OR (365 · Ending Inventory) / COGS

Shareholder's Return

(Dividend Per Share + (YESP - YBSP)) / Year Beginning Stock Price

Dividend Yield

Dividend Per Share / Market Price Per Share

Dividend Payout

Dividend Per Share / EPS

Earnings Yield

EPS / Market Price Per Share

Price to EBITDA Ratio

Market Price Per Share / EBITDA Per Share

Price-Earnings Ratio (P/E)

Market Price Per Share / EPS

Price-to-Book Ratio

Market Value Per Share / BV Per Share

Book Value Per Share

(Total Shareholders' Equity - P/E) / # Shares Outstanding

Cash Flow to Fixed Charges

Adjusted OCF / Fixed Charges (where Adj. OCF = CFO + Cash Interest Payments on Loans/Leases + Cash Op Lease Payments + Cash Paid on Tax)

Fixed Charge Coverage Ratio

(EBIT + [Int Expense on Loans/Leases + Principal Payments on Loans/Leases + Op Lease Payments]) / Fixed Charges

TIE (Times Interest Earned)

EBIT / Int. Expense

Debt-to-Total Assets

Total Debt / Total Assets

LTD to Equity

Total LTD (TL - CL) / Total Equity

Debt-to-Equity

Total Debt / Total Equity

Equity Multiplier

Total Assets / Total Equity

DTL (Degree of Total Leverage)

DOL · DFL OR CM / EBT

DFL (Degree of Financial Leverage)

% Change in NI / % Change in EBIT OR EBIT / EBT

DOL (Degree of Operating Leverage)

% Change in EBIT / % Change in Sales OR CM / EBIT

DuPont Model

NPM × AT × EM

ROCE

OI / (Avg LTD + Avg Equity) OR OI / (Avg TA - Avg CL)

ROE

(NI - P/D) / Avg C/S

EBITDA Margin

EBITDA / Sales

NPM (Net Profit Margin)

Net Income / Net Sales

OPM (Operating Profit Margin)

EBIT / Net Sales

GPM (Gross Profit Margin)

Gross Profit / Net Sales

WC Turnover

Net Sales / Avg WC

FA Turnover

Net Sales / Avg FA

AT Turnover

Net Sales / Avg TA

Cash Cycle

OC - PDP (Inv. Conversion + A/R Collection - Pay. Def.)

Operating Cycle

Inv. Conversion + A/R Collection

A/P Deferral

365 / A/P Turnover OR (365 · Ending A/P) / COGS

A/P Turnover

COGS / Avg A/P

A/R Collection

365 / A/R Turnover OR (365 · Ending A/R) / NCS

A/R Turnover

NCS / Avg A/R

Cash Ratio

(Cash + M/S) / CL

Quick Ratio

(Cash + M/S + A/R) / CL

Current Ratio

CA / CL

Cash Flow Ratio

CF from Ops / CL

Working Capital

CA - CL