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CPA FORMULAS
SEE ABOVE
| Question | Answer |
|---|---|
| Profit Margin | Net Income / (Net) Sales |
| Return on Total Assets | (Net Income + (add back) Interest Expense (net of tax effect)) / Average Total Assets |
| Return on Common Stockholders' Equity | (Net Income - Preferred Dividend (obligation for the period only)) / Average Common Stockholders' Equity (e.g. Beginning + Ending/2) |
| Return on Owners' (all Stockholders') Equity | Net Income / Average Stockholders' Equity (e.g. Beginning + Ending/2) |
| Earnings Per Share (EPS -- Basic Formula) | (Net Income - Preferred Dividends (obligation for the period only)) / Weighted Average Number of Shares Outstanding |
| Price-Earnings Ratio (P/E Ratio) | Market Price for a Common Share / Earnings per (Common) Share (EPS) |
| Total Basis | Cash Dividends to Common Shareholders / Net Income to Common Shareholder |
| Per Share Basis | Cash Dividends per Common Share / Earnings per Common Share |
| Common Stock Yield | Dividend per Common Share / Market Price per Common Share |
| Debt to Equity Ratio | Total Liabilities / Total Shareholders' Equity |
| Owners' Equity Ratio | Shareholders' Equity / Total Assets |
| Debt Ratio | Total Liabilities / Total Assets |
| Book Value per Common Stock | Common Shareholders' Equity / Number of Outstanding Common Shares |
| Book Value per Preferred Share | Preferred Shareholders' Equity (including dividends in arrears) / Number of Outstanding Preferred Stocks |
Created by:
kali1@luc.edu
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