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FIN ANAL EQUATS
| Term | Definition |
|---|---|
| ROE (Return on Equity) | Net Income / Shareholders' Equity |
| ROCE (Return on Capital Employed) | EBIT / (Total Equity + Non-Current Liabilities) |
| EPS (Earnings Per Share) | Net Income / Number of Outstanding Shares |
| EBT | EBIT - Interest Expense |
| Net income or NEAT | EBT - tax |
| ROA (Return on Assets) | Net Income / Total Assets |
| ROS (Return on Sales) | Net Income / Net Revenue (Sales) |
| EBIT | Revenue - COGS - Operating Expenses |
| EBITDA | EBIT + Depreciation & Amortization |
| PER | Share Price / Earnings Per Share (EPS) |
| DuPont Analysis (ROE Decomposition) | ROS x Total Asset Turnover x Equity Multiplier |
| Current Ratio | Current Assets / Current Liabilities |
| Quick Ratio (Acid-Test) | (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities |
| Cash-flow Ratio | Net Cash Flow from Operating Activities (CFO) / Current Liabilities |
| Cash Conversion Cycle (CCC) | ICP + ACP - APP |
| Inventory Conversion Period (ICP) | (Inventory / COGS) x 360 |
| Average Collection Period (ACP) | (Accounts Receivable / Net Sales) x 360 |
| Average Payable Period (APP) | (Accounts Payable / COGS) x 360 |
| Gearing | Total Debt / (Total Debt + Total Equity) |
| Debt to Equity Ratio | Total Debt / Total Equity |
| Times Interest Earned (TIE) | EBIT / Interest Expense |
| Gross Profit | Revenues - Direct OPEX (COGS) |
| EBITDA (subtractive) | Gross Profit - (indirect) OPEX |