Formulas

• Accounting equation: assets, liabilities and equity

  Read the accounting equation: assets, liabilities and equity formula, variables and scope.

  Formulas

• Annuity-due values at a common date

  Use the annuity-due values at a common date relationship with its timing and rate conditions.

  Formulas

• Cash conversion cycle from its three components

  Use the cash conversion cycle from its three components relationship with explicit definitions.

  Formulas

• Cash ratio including short-term marketable securities

  Read the cash ratio including short-term marketable securities formula, variables and scope.

  Formulas

• Common-size balance-sheet percentage

  Read the common-size balance-sheet percentage formula, variables and scope.

  Formulas

• Continuous-compounding value of a single amount

  Use the continuous-compounding value of a single amount relationship with its timing and rate conditions.

  Formulas

• Correlation from covariance and standard deviations

  Use matching units and positive standard deviations in the Pearson-correlation formula.

  Formulas

• Current ratio: current assets divided by current liabilities

  Read the current ratio: current assets divided by current liabilities formula, variables and scope.

  Formulas

• Days of inventory on hand

  Use the days of inventory on hand relationship with explicit definitions.

  Formulas

• Days payable outstanding with an explicit purchases flow

  Use the days payable outstanding with an explicit purchases flow relationship with explicit definitions.

  Formulas

• Days sales outstanding and the sales denominator

  Use the days sales outstanding and the sales denominator relationship with explicit definitions.

  Formulas

• Debt-to-assets ratio with a matching denominator

  Read the debt-to-assets ratio with a matching denominator formula, variables and scope.

  Formulas

• Debt-to-equity ratio and its debt definition

  Read the debt-to-equity ratio and its debt definition formula, variables and scope.

  Formulas

• Basic economic order quantity

  Use the basic economic order quantity relationship with explicit definitions.

  Formulas

• Effective annual rate from a nominal quotation

  Use the effective annual rate from a nominal quotation relationship with its timing and rate conditions.

  Formulas

• Effective rate for a shorter or longer interval

  Use the effective rate for a shorter or longer interval relationship with its timing and rate conditions.

  Formulas

• Equity multiplier in a consistent DuPont chain

  Use the equity multiplier in a consistent dupont chain relationship with explicit definitions.

  Formulas

• Five-factor DuPont identity and denominator conditions

  Use the five-factor dupont identity and denominator conditions relationship with explicit definitions.

  Formulas

• Payment for a fully amortizing level-payment model

  Use the payment for a fully amortizing level-payment model relationship with its timing and rate conditions.

  Formulas

• Future value of dated cash flows at a common time

  Use the future value of dated cash flows at a common time relationship with its timing and rate conditions.

  Formulas

• Interest coverage using EBIT

  Read the interest coverage using ebit formula, variables and scope.

  Formulas

• Inventory turnover and its cost-flow basis

  Use the inventory turnover and its cost-flow basis relationship with explicit definitions.

  Formulas

• Present value of a level perpetuity

  Use the present value of a level perpetuity relationship with its timing and rate conditions.

  Formulas

• Discrete probability-model mean and variance

  Apply probability weights to outcomes and squared deviations without a sample-size divisor.

  Formulas

• Modified duration formula and yield convention

  Relate Macaulay duration to local yield-based price sensitivity.

  Formulas

• Net profit margin

  Use the net profit margin relationship with explicit definitions.

  Formulas

• Net working capital: current assets less current liabilities

  Read the net working capital: current assets less current liabilities formula, variables and scope.

  Formulas

• Net present value formula and time-zero cash flow

  Read the NPV sum and understand its signs and timing.

  Formulas

• Odds for, odds against and probability

  Identify the denominator and quotation direction before converting an odds ratio.

  Formulas

• Operating cycle from inventory and receivable days

  Use the operating cycle from inventory and receivable days relationship with explicit definitions.

  Formulas

• Future value of an ordinary annuity

  Use the future value of an ordinary annuity relationship with its timing and rate conditions.

  Formulas

• Present value of an ordinary annuity

  Use the present value of an ordinary annuity relationship with its timing and rate conditions.

  Formulas

• Payables turnover using a purchases base

  Use the payables turnover using a purchases base relationship with explicit definitions.

  Formulas

• Quick ratio with explicit asset components

  Read the quick ratio with explicit asset components formula, variables and scope.

  Formulas

• Receivables turnover with a stated sales base

  Use the receivables turnover with a stated sales base relationship with explicit definitions.

  Formulas

• Return on equity with a stated average

  Use the return on equity with a stated average relationship with explicit definitions.

  Formulas

• Sample tracking error: deviations of active returns

  Distinguish sample tracking error from mean active return and root mean square deviation.

  Formulas

• Single-sum present and future value

  Use the single-sum present and future value relationship with its timing and rate conditions.

  Formulas

• Three-factor DuPont identity

  Use the three-factor dupont identity relationship with explicit definitions.

  Formulas

• Total asset turnover with an average base

  Use the total asset turnover with an average base relationship with explicit definitions.

  Formulas