University:
University of Maryland Global Campus
Course:
MGMT 640 | Financial Decision Making for Managers
Academic year:

2024
Views:

225

Pages:

1
Author:

Janell C.

Week 3 Formulas Here are some formulas that will be helpful in week 3 related to topics of cash flows and financial analysis. Remember, equations can be rearranged to solve for the variable of interest. Please explore websites (resources listed under "Cyber Cafe") for a deeper understanding of the equations and concepts. Quick ratio = Current Assets - Inventory / Current liabilities Net profit margin=Net Income/Sales Debt to equity ratio = Total Debt/Total Equity • • Total Debt is calculated by multiplying Total Assets by the debt ratio. Total Equity is calculated by subtracting Total Debt from Total Assets. ROA = Profit margin x Total assets turnover Accounts receivable turnover = Net Sales / Accounts Receivables Gross profit margin = Sales- COGS/Sales • Inventory turnover ratio = COGS/Inventory Times Interest Earned is EBIT/Interest Expense

MGMT640: Week 3 Formulas

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