Term / Ratio Calculations
Term / Ratio Calculations
These are some terms and ratios which you will most likely run into while researching stocks and the stock market. Here I provide you with their calculations and formulas.
Asset Turnover
Revenue
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Total Assets
Book Value Per Share (BV)
Stockholders Equity - Preferred Stock
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Average Outstanding Shares
Cash Flow to Assets
Cash from Operations
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Total Assets
Collection Ratio
Accounts Receivable
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(Revenue/365)
Debt-Asset Ratio
Total Liabilities
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Total Assets
Debt-Equity Ratio
Total Liabilities
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Shareholders Equity
Dividend Discount Model (DDM)
Dividend Per Share
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Discount Rate - Dividend Growth Rate
Dividend Payout Ratio
Yearly Dividend per Share
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Earnings per Share
Earnings Before Interest & Tax (EBIT)
Revenue - Operating Expenses
Earnings Per Share (EPS)
Net Income - Dividends on Preffered Stock
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Average Outstanding Shares
EBITDA
Revenue - Expenses (excluding tax, interest, depreciation and amortization)
Enterprise Value (EV)
Market Capitalization - Cash and Equivalents + Debt
Free Cash Flow (FCF)
cash from operations – capital expenditures (capex)
Future Value (FV)
EPS * (Growth Rate ^5) * P/E
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Discount Rate (Minimum Return)
Gordon Growth Model (Terminal Value)
Final Projected Year Cash Flow
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(Discount Rate – Long-Term Cash Flow Growth Rate)
Inventory Turnover
Cost of Goods Sold
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Average or Current Period Inventory
Price/Earnings Ratio (P/E)
Current Share Price
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Current EPS
Profit Margin
Net Income
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Revenue
Return On Assets (ROA)
Net Income + Interest Expense
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Total Assets
Return On Equity (ROE)
Net Income
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Shareholder's Equity
Return On Investment (ROI)
Return on Investment (Benefit)
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Cost of Investment
Return On Investment Capital (ROIC)
Net Income - Dividends
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Total Capital
Return On Capital Employed (ROCE)
EBIT
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Total Assets - Current Liabilities
Working Capital Ratio (Current Ratio)
Current Assets
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Current Liabilities