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Series 86 Formulas a questions and answers verified 2024
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Series 86 Formulas a questions and answers verified 2024
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Series 86 FormulasWorking Capital - correct answer ✔current assets - current liabilities
Current Ratio - correct answer ✔current assets/ current liabilities
Quick Ratio - correct answer ✔(Current Assets - Inventory) / Current
Liabilities
Book Value - correct answer ✔common shareholders' equity/ number of
shares`
Tangible Book Value - correct answer ✔Total Assets - Total Liabilities -
Intangible Assets - Goodwill
Debt to Total Capital Ratio - correct answer ✔Total Debt / (Debt + Equity)
Debt to Equity Ratio - correct answer ✔Total Debt/ Total Shareholders'
Equity
Common Shareholder Equity - correct answer ✔Total Shareholder Equity -
Preferred Shareholder Equity
Days Sales Outstanding - correct answer ✔(Accounts Receivable/ Sales) *
number of days
Interest Coverage Ratio - correct answer ✔EBIT/ interest expense
, Debt to EBITDA Ratio - correct answer ✔Total Debt/ EBITDA
Accounts Receivable Turnover - correct answer ✔Credit Sales (current year)
/ Average Accounts Receivable
Inventory Turnover Ratio - correct answer ✔COGS/Average Inventory
Asset Turnover - correct answer ✔Sales / Average Assets
Gross Profit - correct answer ✔Revenue- COGS
Gross Profit Margin - correct answer ✔Gross Profit/ Sales or Revenue
Operating Profit - correct answer ✔gross profit - operating expenses
Operating Profit Margin - correct answer ✔Operating Profit/ Sales or
Revenue
Operating Income (EBIT) - correct answer ✔Operating Profit +/- Other
Income or Expenses
Net Income - correct answer ✔Operating Income- Taxes- Interest
Net Profit Margin - correct answer ✔Net Income/ Sales or Revenue
Earnings Available to Common - correct answer ✔net income - preferred
dividends
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