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Finance Cheat Sheet

In: Business and Management

Submitted By Salwan
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Cash flow from assets (-ve expansion) = Cash flow to bondholders (-ve borrowing)+ Cash flow to shareholders (-ve borrowing)
2
Cash flow from assets (CFFA) or Free cash flow (FCF) =operating cash flow-net capital spending-additions to net working capital
Operating cash flow = EBIT+D-T=NI+D+I
Net capital spending = Ending NFA-Beginning NFA+D also NCS=Fixed assets bought-fixed assets sold
Additions to NWC = Ending NWC-Beginning NWC
Cash flow to shareholders = dividend paid-net new equity= dividend paid-[Eeq End – Eeq Beg - ending Additions to RE]
Cash flow to shareholders = dividend paid - [(Common+ARE)end-(Common+ARD)beginning-Additions to RE]; no stokes issued=net new equity is zero
Cash flow to creditors=interest paid-net new borrowing Net borrowing (LTD)=debt issued-debt retired
Year UCC CCA UCCt+1
Sales/COGC/D/Other expenses/EBIT/Interest/EBT/T/NI.. Div and Additions to RE Current ratio = Current assets/Current liabilities | Quick ratio=(current assets-inventory)/current liabilities | Cash ratio = Cash + Cash equivalents/Current liabilities | Net working capital to total assets = Net working capital/Total assets | Interval measure = Current assets/Average daily operating costs (GOS/365) | Total debt ratio = [Total assets - Total equity]/Total assets | 3
Debt/equity ratio = Total debt/Total equity | Equity multiplier = Total assets/Total equity | Long term debt ratio=long term debt/(long term debt + total equity) | Long term debt ratio=long term debt/(total capitalization) | Times interest earned ratio = EBIT/Interest | Cash coverage ratio = [EBIT + Depreciation]/Interest=EBITDA/Interest | Inventory turnover = Cost of goods sold/Inventory [account payable] | Days’ sales in inventory = 365 days/Inventory turnover | Receivables turnover = Sales/Accounts receivable | Days’ sales in receivables = 365 days/Receivables turnover |

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