FIN 340 FORMULAS 2025
Networking Capital - ANSWER CA - CL
Free Cash Flow (1) - ANSWER [EBT (1 - tax rate) + depreciation] - [change in
gross fixed assets + change in net working capital]
Free Cash Flow (2) - ANSWER [NOPAT + depreciation] - [investment in
operating capital]
Free Cash Flow (3) - ANSWER operating cash flow - investment in operating
capital
liquidity ratios - ANSWER current ratio, quick ratio, cash ratio
asset management ratios - ANSWER inventory turnover, days sales in
inventory, accounts receivable turnover, average collection period (ACP),
accounts payable turnover (APP), fixed assets turnover, sales to working
capital, total asset turnover, capital intensity
debt management ratios - ANSWER debt ratio, debt to equity, equity
multiplier, times interest earned, fixed charge coverage, cash coverage
profitability ratios - ANSWER gross profit margin, operating profit margin,
profit margin, basic earnings power (BEP), return on assets (ROA), return on
equity (ROE), dividend payout
market value ratios - ANSWER price earnings (PE), market to book
current ratio - ANSWER CA/CL
Networking Capital - ANSWER CA - CL
Free Cash Flow (1) - ANSWER [EBT (1 - tax rate) + depreciation] - [change in
gross fixed assets + change in net working capital]
Free Cash Flow (2) - ANSWER [NOPAT + depreciation] - [investment in
operating capital]
Free Cash Flow (3) - ANSWER operating cash flow - investment in operating
capital
liquidity ratios - ANSWER current ratio, quick ratio, cash ratio
asset management ratios - ANSWER inventory turnover, days sales in
inventory, accounts receivable turnover, average collection period (ACP),
accounts payable turnover (APP), fixed assets turnover, sales to working
capital, total asset turnover, capital intensity
debt management ratios - ANSWER debt ratio, debt to equity, equity
multiplier, times interest earned, fixed charge coverage, cash coverage
profitability ratios - ANSWER gross profit margin, operating profit margin,
profit margin, basic earnings power (BEP), return on assets (ROA), return on
equity (ROE), dividend payout
market value ratios - ANSWER price earnings (PE), market to book
current ratio - ANSWER CA/CL