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Summary Extensive formula and ratio's sheet. ALL FORMULA'S Explained in detail £2.55   Add to cart

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Summary Extensive formula and ratio's sheet. ALL FORMULA'S Explained in detail

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Extensive formula and ratio's sheet. ALL FORMULA'S Explained in detail. I made this, because I didn't have much finance background for this course. So all formula's are explained very detailed. I got an 8.7 for the exam so it really helped me!

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  • Extensive formula sheet explained in detail
  • January 19, 2021
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  • 2020/2021
  • Summary
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CORPORATE FINANCE AND BEHAVIOR
University Utrecht 2020/2021

Summary all lectures and book
Course code: ECB2FIN
Chapter 8, 13, 17, 18, 20, 21, 28, 30, 27




Grift, A. van der

, Author: A. van der Grift

Ratio's
• Debt - equity ratio can be bigger than 1
• Quick ratio is always less than current ratio
• Return on equity can be bigger than return on assets

Name Abbreviation Formula Explanation
After tax interest = (1 − 𝑡𝑐) ∙ 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 Expenses or interest payment
Average account = (365 days)/(Account Payables
payables Turnover Ratio)
conversion period
Average account = (Cost of Goods Sold)/(Average
payables turnover Account Payables)
Average account = (Total Credit Sales)/(Average AR)
receivables
turnover ratio
Average collection 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
= 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑒𝑠
period 365

Average collection = (365 days)/(Average Account
period Receivables Ratio)

(or: ACP = (Average AR)/((Total
Credt Sales)/365) )
Cash ratio 𝐶𝑎𝑠h+𝑚𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠
=
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Current ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Debt ratio 𝐷 D = Debt
= 𝑉
V = Total value of company (debt + equity)



Author: A. van der Grift

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