IMPORTANT FORMULAS

Market Capitalisation = PRICE X NO.OF SHARES

PE (Price To Earning) = PRICE / EPS

EPS = NET PROFIT – PREF. DIVIDEND / NO.OF SHARES
(Earning Per Shares)

Book Value = NETWORTH / NO. OF SHARES

PRICE TO Book Value = PRICE / BV

NETWORTH = EQUITY PAID UP + RES. & SURPLUS- Revaluation Reserves

DIVIDEND YIELD = DIVIDEND % (annualized) X FV / DLY PRICE

DIVIDEND IN RS = DIVIDEND % X FV / 100

PBIDT = OPERATING PROFIT

PBDT = GROSS PROFIT

APAT = NET PROFIT

CPM = CASH PROFIT MARGIN

GROWTH QUERY = (CURRENT YR – PREVIOUS YR) / PREVIOUS YR *100

ENTERPRISE VALUE = MCAP+DEBT – CASH & BANK BALANCE

IN CASE OF BANKS = MCAP+DEPOSITS+BORROWINGS – CASH & MONEY

CAGR NP = (([FINANCE]. [NP] / [FINANCE_1].[NP] )^(1/5)-1)*100

CASH PROFIT = NETPROFIT + Depreciation

FREE FLOAT = TOTAL NO. OF SHARES – PROMOTERS HOLDING

VALUE OF PROMOTER
HOLDING = HOLDINGS].[NSPROMOTER] * [DLYPRICE].[CLOSE]


OUTSTANDING SHARE = EQUITY / FACE VALUE







Cost of production :

Raw material cost + Power & fuel + Employee Cost + Director Remuneration + other operating expense + Depreciation + Insurance + opening stock of WIP - closing stock of WIP

Value of Output:

Net Sales + change in stock

Selling Cost:

Advertisement + Distribution Expenses+ Commission expenses on sales

Total Assets/Liabilities (Excluding Revel & W.off) :

Share Capital + Reserves + Debt + Current Liab & provision – Misc. Exp

Average Days of Debtors :

Debtors / (Cost of Production / 365 days)

Average Days of Creditors :

(Creditors / (Cost of Production + Selling Cost)/(closing stock of Finished Goods-opening stock of Finished Goods)/365 days)

CP (Cash Profit) : Net Profit (PAT) + Depreciation

Valuation Ratio:

PE : Close Price / EPS

Price to BV : Close price / Book Value

Price / Cash Earning Per Share : closing price / (Net profit - preference dividend - dividend tax + Depreciation) / Equity paid up * FV

EV/EBITA : (Market Cap + Debt-Cash and Bank) / GP + Interest

In case of Banks EV= Market Cap + Deposits + Borrowings – Cash & Money

Market Cap /Sales = Market cap / Gross Sales
in case of Banks & Finance company Sales is including other income












Dupont Model:


Fixed asset: Net block + capital work in progress

NET working capital : Current asset-current liabilities

Net asset : Fixed asset+NW capital+ investment

For Banks: Sales : Sales + other Income




Ratio

PBIDT \ Sales % : (GP + interest) / Gross sales*100

Sales / Net Asset : Gross Sales / Net Asset

PBDIT/Net Assets : PBIDT (operating Profit) / Net Asset

PAT/PBIDT(%) : Net Profit / PBIDT *100

Net Assets/Net Worth : Net Asset / Net worth (Excluding Revaluation reserve)

ROE : (Adjusted net profit – preference dividend) / (equity paid up + reserves) * 100

DPS : Dividend amount * Face Value / Equity Paid up




























FOR MANUFACTURING
POWER , HOTEL AND SHIPPING INDUSTRIES

DEBT TO EQUITY Total Debt / (Share Capital + Reserves)
LONG TERM DEBT TO EQUITY (Total Debt – Cash Credit – Commercial Paper –Bridge Loans – Short Term Loans to Group Companies- Short Term Loans To Others – Inter Corporate Deposits – Working Capital Loans) / (Share Capital +Reserves)
CURRENT RATIO (Total Inventory +Sundry Debtors + Cash and Bank Balance+ Loans and Advances / (Total Current Liabilities + Cash Credit + Commercial Paper + Bridge Loans + Short Term Loans to Group Companies + Short Term Loans to Others + Inter Corporate Deposits + Working Capital Loans)

FIXED ASSESTS TURNOVER RATIO

Sales / Gross Fixed Assets Excluding Capital Work in Progress - Revaluation Reserve)
INVENTORY TURNOVER RATIOS Sales / Total Inventory
DEBTORS TURNOVER RATIOS Sales / Sundry Debtors
INTEREST COVER EBIT/ Interest expenses
TOTAL ASSETS TURNOVER RATIOS Sales / (Net Fixed Assets + Investment + Working Capital)
PBIDTM (Adjusted Gross Profit + Interest / Sales) * 100
PBITM (Adjusted Gross Profit + Interest – Depreciation / Sales) * 100
PBDTM (Adjusted Gross Profit / Sales) * 100
CPM (Adjusted Net Profit + Depreciation)/ Sales * 100
APATM (Adjusted Net Profit / Sales) * 100
ROCE (Reported Net Profit + Tax + Interest)/(Share Capital + Reserve + Total Debt – Miscellaneous exp. Not Written Off) * 100
RONW (Reported Net Profit – Preference Dividend) / (Equity Paid Up + Reserves) * 100
FINANCE SECTOR COMPANIES
DEBT TO EQUITY (Total Debt / (Share Capital + Reserves)
LONG TERM DEBT TO
EQUITY (Total Debts – Cash Credit – Commercial Paper – Bridge Loans – Short Term Loans To Group Companies – Short Term Loans To Others – Inter Corporate Deposits – Working Capital Loans) / (Share Capital Reserves + Reserves)
CURRENT RATIO (Total Inventory + Sundry Debtors + Cash and Bank balance + Loans and Advances) / (Total Current Liabilities + Cash Credit + Commercial Paper + Bridge Loans + Short Term Loan to Group Companies + Short Term to Others + Inter Corporate Deposits + Working Capital Loans)
FIXED ASSETS TURNOVER RATIOS Total Income /Gross Block – Revaluation Reserve

INVENTORY TURNOVER RATIOS Total Income / Inventory
DEBTOR S TURNOVER RATIO Total Income / Sundry Debtors
TOTAL ASSETS TURNOVER RATIOS Sales / Net Fixed Assets + Investment + Working Capital
PBIDTM (Adjusted Gross Profit + Interest / Total income ) * 100
PBITM (Adjusted Gross Profit + Interest – Depreciation / Total Income) * 100
CPM (Adjusted Net Profit + Depreciation ) / Total Income ) * 100
APATM Adjusted Net Profit / Total Income ) * 100
ROCE (Adjusted Net Profit + Tax + Interest) / (Share Capital + Reserves + Total Debts – Miscellaneous not written off) * 100
RONW (Adjusted net profit – preference dividend ) / (equity Paid Up + Reserves ) * 100

ADDITIONAL RATIOS FOR FINANCIAL INSITITUTIONS
LOAN TURNOVER Total Income /(Loans to Subsidiaries + Loans to Other)
ADVANCES TO LOAN FUNDS (Loans to Subsidiaries + Loans to Others) /Debt
TOTAL INCOME TO CAPITAL EMPLOYED Total Income / (Share cap + Reserves + Debt)
INTEREST EXPENDED TO CAPITAL EMPLOYED Interest / (Share cap+ Reserves + Debt)
CAPITAL EMPLOYED TOAL LIABILITIES – TOTAL REVALUATION RESERVE

BANKS
CREDIT / DEPOSIT (Advances / Deposits) * 100
INVESTMENT / DEPOSIT (Investments / Deposits ) * 100
Cash / Deposit (Cash /Deposits) * 100
INTEREST EXPENDED/INTEREST EARNED (Interest / Interest Earned) * 100
OTHER INCOME / TOTAL INCOME (Other Income / Total Income) * 100
OPERATING EXPENSES / TOTAL INCOME (Employed Expenses + Selling and Administrative exp + Depreciation + Loss on Sale of Asset + Loss on Sale of Investments + Loss In foreign exchange ) / total income
INTEREST INCOME / TOTAL FUNDS Interest earned / (share capital +deposits + borrowings + creditors + other liablilities and provisions)
NET INTEREST INCOME / TOTALFUNDS (interest earned – interest paid) / share capital + deposit+ borrowings + creditors + other liablilites and provisions
NON INTEREST INCOME / TOTAL FUNDS Other income / (Share capital + deposits + borrowings + creditors + other liabilities & provisons)
OPERATING EXPENSES / TOTAL FUNDS (Employed expenses + selling and administrative exp + depreciation + loss on sale of asset + loss on sale of investments +loss in foreign exchange) / (share capital + deposits + borrowing + creditors + other liabilities & provisions)
PROFIT BEFORE PROVISIONS / TOTAL FUNDS (Adjusted Net Profit + Provisions & write offs) / (share capital + deposits + borrowing + creditors +other liabilities & provisions)
NET PROFIT / TOTAL FUNDS Net Profit / (Share Capital + Deposits + Borrowings + Creditors +Other Liabilities & Provisions)
RETURN ON NET WORTH (RONW) (Adjusted Net Profit – Preference Dividend) / (Equity Paid up + Reserves) * 100

NOTE : ALL BALANCE SHEET ITEMS ARE AVERAGE OF TWO YEARS AND PROFIT AND LOSS FIGURES ARE ANNUALISED.
NOTE : In Margin Ratio Taking Gross Sales.