COB 300 - FIN ANTWERP midterm formulas not on sheet

Net working capital

Permanent capital - Net Fixed Assets OR current assets - current liabilities

Permanent Capital

Equity + Long term Debt

Working Capital Requirement

Operating Current Assets - Operating Current Liabilities

Liquid Ratio

Net Working Capital/Working Capital Required

Average Collection Period

Receivables/(Sales/365)

Average Payment Period

Payables/(Purchases/365)

Profit Margin

Net Income/Revenue

sustainable growth rate

ROE(1-PO)/1-(ROE(1-PO)

Payout Ratio

Dividends/Net Income

Retention Rate

1-PO or Retained Earnings/Net Income

ROE second formula

Profit Margin x Total Asset Turnover x Equity Multiplier

Basic earning power

EBIT/Total Assets

Net profit margin

net income/sales

dividend yield

dividends per share/market price per share

Enterprise value

equity value + debt - cash

EBITDA X EBITDA multiple

Equity Value

Enterprise value - debt + cash

Net change in owners' equity

= {Earnings after tax - Dividends} (= Addition to retained earnings) + Amount raised by new share issuance - Amount paid for share repurchase

market capitalization

current market price per share x total number of outstanding shares