1、财务指标计算公式及分析运用(Calculation formula of financial index and its analysis and Application)Calculation formula of financial index and its analysis and ApplicationFirst, general classification and calculation of commonly used financial indicatorsSolvency Index(1) short term solvency index1. ...
of commonly used financial indicators I. Solvency Index (I) short-term solvency index 1. liquidity ratio = current assets / current liabilities 2. quick ratio = quick assets / current liabilities 3. cash flow ratio = annual net operating cash flow / current liabilities at the end of the ...
fixed assets depreciation rate = average net fixed assets divided by average fixed assets by 100% Two, the commonly used financial indicators specific application analysis 1, liquidity ratio Liquidity is the ability of an enterprise to generate cash, depending on the amount of liquid assets that ...
Home›Finance›Financial Ratio Analysis›Price Earnings P/E Ratio The price earnings ratio, often called the P/E ratio or price to earnings ratio, is a market prospect ratio that calculates the market value of a stock relative to its earnings by comparing the market price per share by ...
Home›Finance›Financial Ratio Analysis›Treynor Ratio The Treynor ratio, sometimes called the reward to volatility ratio, is a risk assessment formula that measures the volatility in the market to calculate the value of an investment adjusted risk. In other words, it’s financial equation that...
Financial Leverage Ratio The financial leverage ratio is an indicator of how much debt a company is using to finance its assets. A high ratio means the firm is highly levered (using a large amount of debt to finance its assets). A low ratio indicates the opposite. ...
This has been CFI’s guide to the earnings per share formula. To learn more about other forms of financial analysis and to advance your career as acertified financial analyst, explore the additional CFI resources below: Cash EPS Price-Earnings Ratio ...
Degree of Financial Leverage = EBIT / (EBIT – Interest) In this formula, the ratio essentially shows how many times EBIT can cover the interest expense. A higher value indicates that the company generates significantly more operating income (EBIT) than the interest it needs to pay, which is...
Yes, using IRR to obtain net present value is known as the discounted cash flow method of financial analysis. The internal rate of return is the interest rate (also known as the discount rate) that will bring a series of cash flows (positive cash flow and negative cash flow) to a net ...
Advantages and Disadvantages of Discounted Cash Flow Analysis Like any other form of financial analysis, there are advantages and disadvantages to using discounted cash flow analysis. Advantages Investment evaluation Applicable to variety of projects ...