FSA Relationships
NA = TA - TL = TE (-NCI) - ANS-Net assets
NFA = cash + marketable securities + investment in equity securities - debt (all types) - ANS-Net
Financial Assets
all non financial assets - all non financial liabilities; NOA = NA - NFA - ANS-Net Operating
Assets
NOI = NI - NFI*(1-t) - ANS-Net Operating Income (net of tax)
ROE = NI / NA = RNOA - (FLEV * (RNOA - RNFA)) = RNOA - FLEV * Spread - ANS-Return on
Equity
RNOA = NOI / NOA - ANS-Return on Net Operating Assets
RNFA = NFI / NFA - ANS-After Tax Borrowing Rate (Interest Rate/Return on Net Financial
Assets)
ATO = Revenues / NOA - ANS-Asset Turnover
PM = NOI / Revenues - ANS-Profit Margin
FLEV = NFA / NA - ANS-Financial Leverage
RNOA - RNFA - ANS-Spread
NOPAT = NOPBT - Tax Expense - Tax Shield - ANS-Net Operating Profit After Taxes
NA = TA - TL = TE (-NCI) - ANS-Net assets
NFA = cash + marketable securities + investment in equity securities - debt (all types) - ANS-Net
Financial Assets
all non financial assets - all non financial liabilities; NOA = NA - NFA - ANS-Net Operating
Assets
NOI = NI - NFI*(1-t) - ANS-Net Operating Income (net of tax)
ROE = NI / NA = RNOA - (FLEV * (RNOA - RNFA)) = RNOA - FLEV * Spread - ANS-Return on
Equity
RNOA = NOI / NOA - ANS-Return on Net Operating Assets
RNFA = NFI / NFA - ANS-After Tax Borrowing Rate (Interest Rate/Return on Net Financial
Assets)
ATO = Revenues / NOA - ANS-Asset Turnover
PM = NOI / Revenues - ANS-Profit Margin
FLEV = NFA / NA - ANS-Financial Leverage
RNOA - RNFA - ANS-Spread
NOPAT = NOPBT - Tax Expense - Tax Shield - ANS-Net Operating Profit After Taxes