Net Cash Flow = Net Income + Depreciation and Amortization
Net Working Capital => you have to remember!
NOPAT= EBIT (1-t)
OCF = EBIT (1-t) + Depreciation
FCF = EBIT(1-t) + Depreciation - Capital expenditures - Changes in Net Working Capital
CF to investors (CF from assets=FCF) = -CF from financing activities + interest
Cash flow to creditors = interest + retirement of debt – new debt issues =
= interest – Δ LT debt – Δ ST debt – ΔCurrent maturities of LTD
Cash flow to shareholders = dividends + ...view middle of the document...
les in Inventory = 365 / Inventory Turnover
Receivables Turnover = Sales/ Receivables
Days Sales Outstanding (DSO) = Receivables / (Sales/365)
Days’ Payables Outstanding (DPO) = Payables/ (Sales/365)
Cash Conversion Cycle (CCC) => you have to remember!
Total Asset Turnover = Sales/TA
Profit Margin = NI/Sales
Return on Assets=> you have to remember!
Return on Equity => you have to remember!
ROE = PM * TA TO * EM = ROA*EM
External Financing Needed (EFN) = (A*/S0)ΔS – (L*/S0) ΔS – PM(S1)(RR)
Present Value of one CF => you have to remember!
Future Value of one CF => you have to remember!
Present Value and Future Value of an Annuity
PV ANNUITY 1
r (1 r ) t
FV ANNUITY (1 r ) t 1
Present Value of an Annuity Due => you have to remember!
Present Value of a Perpetuity => you have to remember!
EPR with continuous compounding: eAPR×T – 1
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Price of a Bond
YTM (1 YTM ) (1 YTM ) t
Current Yield => you have to remember!
YTM = Current yield + Expected Capital Gain
Dividend Growth Model
D (1 g )
Pt t 1 t
r t 1 g r 1 g