Questions & Answers
Enterprise Value (EV) - ANSWERmarket value of equity + market value of interest-cash
EV multiple - ANSWEREV/EBITDA
Market Capitalization - ANSWERshare price x number of shares outstanding
Market to Book Ratio - ANSWERmarket value of equity / book value of equity or market
value per share/book value per share
Price - Earnings Ratio (PE) - ANSWERstock price per share/earnings per share
profit margin - ANSWERNet Income/Sales
EBITDA Margin - ANSWEREBITDA/Sales
Return on Assets - ANSWERNet Income/Total Assets
Return on Equity - ANSWERNet Income/Total Equity
Asset Turnover - ANSWERsales/total assets at start of year
Inventory Turnover - ANSWERCost of goods sold/inventory at start of year
average days in inventory - ANSWER365/inventory turnover ratio
Recievables Turnover - ANSWERsales/receivables at start of year
Days' Sales in Receivables (DSO) - ANSWER365/receivables turnover ratio
Debt to Equity Ratio - ANSWERTotal Debt/Total Equity
Total Debt Ratio - ANSWERtotal liabilities/total assets
Times Interest Earned - ANSWEREBIT/ interest expense
Cash Coverage Ratio - ANSWER(EBIT + Depreciation) / Interest
Current Ratio - ANSWERcurrent assets/current liabilities (liquidity)
Quick Ratio - ANSWER(Current Assets - Inventory) / Current Liabilities