Finance Formulas

Card Set Information

Author:
Anonymous
ID:
61389
Filename:
Finance Formulas
Updated:
2011-01-23 10:39:08
Tags:
Finance Formulas
Folders:

Description:
Intro Formulas
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. EBIT

    (Definition and Formula)
    Earning Before Interset and Taxes

    net sales - costs (including depreciation)
  2. EBITDA

    (Definition)
    Earnings Before Interest, Taxes, Depreciation, Amortization
  3. EPS

    (D/F)
    earnings per share

    net income / common shares outstanding
  4. EVA

    (4 Formulas)
    Economic Value Added (short term)

    NOPAT - after tax dollar cost of capital used to support operations

    (EBIT(1 - tax rate)) - (total operating capital * WACC)

    (EBIT(1 - tax rate)) - (total operating capital * percent of after tax cost of capital)

    (operating capital)(ROIC - WACC)
  5. FCF

    (D/F-5)
    Free Cash Flow

    sales revenue - operating costs - operating taxes - required new investments in operating capital

    NOPAT - net investment in operating capital

    (NOPAT + Depreciation) - (Net investment in operating capital + depreciation)

    Operating cash flow - gross investment in operating capital

    Operating cash flow - gross investment in long trerm operating assets - Investment in NOWC
  6. GIC

    (D/F)
    Gross Investment in Capital

    net investment capital + depreciation
  7. MVA

    (D/F-4)
    Market Value Added (Long Term)

    market value of stock - equity capital supplied by shareholders

    (shares outstanding * stock price) - total common equity

    total market value - total investor supplied capital

    (market value of stock + market value of debt) - total supplied investor capital
  8. NCF

    (D/F-2)
    Net Casf Flow

    Net income + noncash revenues + noncash charges

    net income + depreciation + amortization
  9. NOC

    (D/F)
    Net Operating Capital

    NOWC + operating long term assets
  10. NOWC
    Net Operating Working Capital

    Operating Current Assets - Operating Current Liabilities

    Does not include any asset or liability that charges interest
  11. OCF

    (D/F)
    Operating Cash Flow

    NOPAT + Depreciation
  12. ROI

    (D/F)
    Return on Investment

    • $ after taxes
    • $ of investment
  13. ROIC

    (D/F)
    Return On Invested Capital

    • NOPAT
    • Operating Capital
  14. WACC

    (D/F)
    Weighted Average Cost of Capital

    • FCF1 + FCF2 + ...
    • (1 + WACC)1 (1 + WACC)2
  15. NI

    (D/F-2)
    Net Income

    EBIT - Interest - Taxes

    EBITDA - Depreciation - Amortization - Interest - Taxes
  16. NIOC

    (D/F)
    Net Investment in Operating Capital

    Net Operating CaptialEnd - Net Operating CapitalBegin
  17. Personal Bond Yield

    (F)
    (1 - Tax Rate) * (Bond Rate)
  18. Taxes

    (F)
    EBIT * (1 - Tax Rate)
  19. Dividends
    Retained EarningsBeg + Net Income - REEnd

What would you like to do?

Home > Flashcards > Print Preview