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Profitability ratios * Gross Margin Ratio Gross Profit/Sales * Operating Income Ratio Sustainable Operating Income/Sales * R&D Expense Percent R&D/Sales * SGA Expense Percent SGA/Sales * Net Margin Ratio Sustainable Net Income/Sales * Effective Tax Rate Income Tax Provision/Income Before Taxes * Return on Total Assets Sustainable Net Income/Total Assets * Return on Equity Sustainable Net Income/Shareholders’ Equity * DuPont Analysis Net Margin Ratio X Total Asset Turnover X Total Assets To Equity * Economic Value Added (EVA) (Return on Total Assets% - Cost of Capital%) X Total Assets

Liquidity Ratios * Current Ratio Current Assets/Current Liabilities * Quick Ratio (Cash + ST Investments + A/R) / Current Liabilities * Defensive Interval (Cash + ST Investments + A/R) / Daily Spending on Operating Expenses and Interest

Leverage Ratios * Total Assets to Equity Total Assets/Shareholders’ Equity * Total Liabilities to Equity Total Liabilities/Shareholders’ Equity * Debt to Equity Debt Financing/Shareholders’ Equity * Times Interest Earned EBITDA/Interest Expense * Altman’s Z Bankruptcy 3.3(EBT/TA)+1.2(WC/TA)+.6(MktEq/BkDebt)+ 1.4(RE/TA)+1(Revenue/TA) * Book Value Per Share Common Shareholders’ Equity/# of Shares Outstanding

Activity Ratios * Receivables Turnover Revenue/Accounts Receivable * Days Receivables 365/Receivables Turnover * Inventory Turnover Revenue/Inventory * Days Inventory 365/Inventory Turnover * Payables Turnover Revenue/Accounts Payable * Days Payables 365/Payables Turnover * Cash Cycle Days Inventory – Days Payables + Days Receivables * Fixed Assets Turnover Revenue/PP&E * Days Fixed Assets 365/Fixed Assets Turnovers * Total Assets Turnover Revenue/Total Assets…...

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...• o Question o Answer o Side 3 • o Budgeted At Completion (BAC) o How much was originally planned for this project to cost. No one formula exists. Is derived by looking at the total budgeted cost for the project. o No one formula exists. Is derived by looking at the total budgeted cost for the project. • o Planned Value (aka Budgeted Cost of Work Scheduled) (PV or BCWS) o How much work should have been completed at a point in time based on the plan. Derived by measuring planned work completed at a point in time. Planned % Complete x BAC o Planned % Complete x BAC • o Earned Value (aka Budgeted Cost of Work Performed) (EV or BCWP) o How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule. EV = Actual % Complete x BAC o EV = Actual % Complete x BAC • o Actual Cost (aka Actual Cost of Work Performed) (AC or ACWP) o The money spent during a given period of time. Sum of the costs for the given period of time. o Sum of the costs for the given period of time. • o Cost Variance (CV) o The difference between what we expected to spend and what was actually spent. CV = EV-AC o CV = EV-AC • o Schedule Variance (SV) o The difference between where we planned to be in the schedule and where we are in the schedule SV = EV-PV o SV = EV-PV • o Cost Performance Index (CPI) o The rate at which the project performance is meeting cost expectations during a......

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