Assets = Liabilities + EquityEFN = Assets – (Liabilities + E…
Assets = Liabilities + EquityEFN = Assets – (Liabilities + Equity)EFN = g * – (Profit Margin * (Sales0) * Retention Ratio)Income = Revenue – ExpensesNet Working Capital = Current Assets – Current LiabilitiesCash Flow from Assets = Interest Paid – New Debt + Dividends – New StockCash Flow from Assets = Operating Cash Flow – Net Capital Spending – Change in NWCOperating Cash Flow = Earnings Before Interest and Taxes (EBIT) + Depreciation – TaxesEBIT = Net Income + Interest + Taxes = Sales – Costs – Operating ExpensesNet Capital Spending = Ending net Fixed Assets – Beginning Net Fixed Assets + DepreciationChange in NWC = Ending NWC – Beginning NWCCash Flow to Creditors = Interest Paid – Net New BorrowingCash Flow to Stockholders = Dividends Paid – Net New Equity RaisedUses of Cash: Increase in Assets or a Decrease in Liabilities or EquitySources of Cash: Increase in Liabilities and Equity or a Decrease in AssetsInternal Growth Rate = Return on Assets * Retention Ratio / 1 – (Return on Assets * Retention Ratio)Sustainable Growth Rate = Return on Equity * Retention Ratio / 1 – (Return on Equity * Retention Ratio) RATIOS Cash Coverage Ratio = (EBIT + Depreciation) / InterestCash Ratio = Cash / Current LiabilitiesCurrent Ratio = Current Assets / Current LiabilitiesDebt-Equity Ratio = Total Debt / Total EquityDebt Ratio = Total Debt / Total AssetsEquity Multiplier = 1 + Debt-Equity RatioInterest Coverage Ratio = EBIT / Interest ExpenseInventory Turnover = COGS / InventoryNWC to Assets = NWC / AssetsPrice/Earnings Ratio = Price Per Share / Earnings Per ShareProfit Margin = Net Income / SalesQuick Ratio = (Current Assets – Inventory) / Current LiabilitiesRetention Ratio = Retained Earnings / Net Income Return on Assets = Net Income / Total AssetsReturn on Equity = Net Income / Total EquityROE = Profit Margin x Total Asset Turnover x Equity MultiplierROE = ROA x Equity MultiplierTotal Asset Turnover = Sales / Total Assets