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How to calculate the profit of linear algebra
Collect the summary of knowledge points of linear algebra and how to calculate linear formulas.

1, current ratio = current assets/current liabilities

2. Quick ratio = (current assets-inventory)/current liabilities

3. Conservative quick ratio = (cash+short-term securities+notes receivable+net accounts receivable)/current liabilities

4. Business cycle = inventory turnover days+average collection cycle.

5. Inventory turnover rate (times) = cost of sales/average inventory

In which: average inventory = (inventory at the beginning of the year+inventory at the end of the year)

Inventory turnover days =360/ inventory turnover rate = (average inventory *360)/ cost of sales

6 accounts receivable turnover rate (times) = sales revenue/average accounts receivable

Among them: sales revenue is the net amount after deducting discounts and concessions;

Accounts receivable are the amount without deduction of bad debt provision.

Average collection period =360/ accounts receivable turnover rate = (average accounts receivable *360)/ net income of main business.

7. Turnover rate of current assets (times) = sales revenue/average current assets.

8. Total assets turnover rate = sales revenue/average total assets

9. Asset-liability ratio = total liabilities/total assets

10, property right ratio = total liabilities/owner's equity

1 1, tangible net debt ratio = total liabilities/(shareholders' equity-net intangible assets)

12. Multiples of interest earned = earnings before interest and tax/interest expense.

13, net sales interest rate = net profit/sales revenue * 100%

14, gross sales margin = (sales revenue-sales cost)/sales revenue * 100%

15, net interest rate on assets = net profit/average total assets;

16, ROE = net profit/average net assets (or year-end net assets) * 100% or net sales rate * asset turnover rate * equity multiplier or interest rate on net assets * equity multiplier.

17, cash maturity debt ratio = net operating cash inflow/current maturity debt = net operating cash inflow/(long-term maturity debt+notes payable)

18, cash current debt ratio = operating cash flow/current liabilities

19, total cash debt ratio = operating cash inflow/total liabilities.

20. Sales cash ratio = operating cash flow/sales.

2 1, interest rate = net interest rate+additional interest rate+risk additional interest rate.

22. Cash recovery rate of all assets = net operating cash flow/all assets * 100%.

23. Fixed average annual cost = (original value+operating cost-residual value)/service life or = (sum of original value+operating cost present value-residual value present value)/annuity present value coefficient.

24. Operating cash flow = operating income-cash cost-income tax = after-tax net profit+depreciation = income (1- income tax)-cash cost (1- income tax)+depreciation * tax rate.

25. cash flow adjustment method: adjusted net present value =∑][a* expected cash flow /( 1+ risk-free rate of return) t]a- positive equivalent.

26. Risk-adjusted discount rate method: adjusted net present value = ∑ [expected cash flow /( 1+ risk-adjusted discount rate) t]

Investor's required rate of return = risk-free rate of return +b * (average market rate of return-risk-free rate of return):

Rate of return required by the project = risk-free rate of return+b * of the project.