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Series 7 formulas
Formulas
| Term | Definition |
|---|---|
| Working Capital | current assets - current liabilities |
| Current ratio | Current assets ÷ current liabilities |
| Quick acid ratio (acid test) | current assets - inventory ÷ current liabilities |
| Bond ratio | total debt ÷ total capitalization |
| Debt-to-equity | Total debt ÷ total shareholders' equity |
| E PS | Earnings available to common shareholders ÷ average number of shares of common stock outstanding |
| Current yield (stock) | Annual dividend ÷ current market price |
| Dividend payout ratio | Annual dividend ÷ E P S |
| PE ratio | MV ÷ PE |
| current yield (equity) | Annual dividend ÷ current market price |