Coporate finance I

• Current Ratio = CA / CL
• 2,256 / 1,995 = 1.13 times
• Quick Ratio = (CA – Inventory) / CL
• (2,256 – 301) / 1,995 = .98 times
• Cash Ratio = Cash / CL
• 696 / 1,995 = .35 times
• NWC to Total Assets = NWC / TA
• (2,256 – 1,995) / 5,394 = .05
• Interval Measure = CA / average daily operating costs
• 2,256 / ((2,006 + 1,740)/365) = 219.8 days
• Total Debt Ratio = (TA – TE) / TA
• (5,394 – 2,556) / 5,394 = 52.61%
• Debt/Equity = TD / TE
• (5,394 – 2,556) / 2,556 = 1.11 times
• Equity Multiplier = TA / TE = 1 + D/E
• 1 + 1.11 = 2.11
• Long-term debt ratio = LTD / (LTD + TE)

843 / (843 + 2,556) = 24.80%

• Times Interest Earned = EBIT / Interest
• 1,138 / 7 = 162.57 times
• Cash Coverage = (EBIT + Depreciation) / Interest
• (1,138 + 116) / 7 = 179.14 times
• Inventory Turnover = Cost of Goods Sold / Inventory
• 2,006 / 301 = 6.66 times
• Days’ Sales in Inventory = 365 / Inventory Turnover
• 365 / 6.66 = 55 days
• Receivables Turnover = Sales / Accounts Receivable
• 5,000 / 956 = 5.23 times
• Days’ Sales in Receivables = 365 / Receivables Turnover
• 365 / 5.23 = 70 days
• Total Asset Turnover = Sales / Total Assets
• 5,000 / 5,394 = .93
• It is not unusual for TAT < 1, especially if a firm has a large amount of fixed assets
• NWC Turnover = Sales / NWC
• 5,000 / (2,256 – 1,995) = 19.16 times
• Fixed Asset Turnover = Sales / NFA
• 5,000 / 3,138 = 1.59 times
• Profit Margin = Net Income / Sales
• 689 / 5,000 = 13.78%
• Return on Assets (ROA) = Net Income / Total Assets
• 689 / 5,394 = 12.77%
• Return on Equity (ROE) = Net Income / Total Equity
• 689 / 2,556 = 26.96%
• Market Price = $87.65 per share
• Shares outstanding = 190.9 million
• PE Ratio = Price per share / Earnings per share
• 87.65 / 3.61 = 24.28 times
• Market-to-book ratio = market value per share / book value per share
• 87.65 / (2,556 / 190.9) = 6.55 times
• ROE = NI / TE
• Multiply by 1 (TA/TA) and then rearrange
• ROE = (NI / TE) (TA / TA)
• ROE = (NI / TA) (TA / TE) = ROA * EM
• Multiply by 1 (Sales/Sales) again and then rearrange
• ROE = (NI / TA) (TA / TE) (Sales / Sales)
• ROE = (NI / Sales) (Sales / TA) (TA / TE)
• ROE = PM * TAT * EM
• ROE = PM * TAT * EM
• Current Ratio  បទដ្ឋានទទួល ២ដង

Acid-Test Ratio

-          Stock Turnover  មាន 2វិធិសាស្រ្តអាស្រ័យលើពត៌មាន

-          Stock Turnover (For Retailers Only)

-          Stock Turnover (For Retailers Only)

-          Receivable Turnover

-          Sale to net working capital

v  Solvency សាធនភាព

-          Debt to net worth  

-          Time Interest earned

v  Profitability ផលចំណូល

-          Sale to total Assets

-          Net Profit margin

-          Return on Asset

Return of Investment

v  អត្រាហានិភ័យឥណទាន (PAR) Portfolio At Risk:                      សមតុល្យឥណទានដែលខកខានមិនបានសងតាមកិច្ចសន្យា (ប្រាក់ដើម) PAR (%) =                                                                                                             X  100                         សមតុល្យឥណទានសរុប  (ប្រាក់ដើម) v  អត្រានៃការសងមកវិញ                                     សរុបទឹកប្រាក់ដែលត្រូងសង ហើយបានសង (ឥណទានសកម្ម) អត្រានៃការសងមកវិញ=                                                                                               X​  100                                          សរុបទឹកប្រាក់ដែលត្រូវសង (ឥណទានសកម្ម) v  អត្រាបំណុលលុបចេញពីបញ្ជី                                     សរុបបំណុលលុបចេញក្នុងគ្រា - ប្រមូលបំណុលលុបចេញពីបញ្ជីក្នុងគ្រា         អត្រាបំណុលលុបចេញពីបញ្ជី =                                                                                                           X  100                                                 សមតុល្យមធ្យមនៃឥណទានក្នុងគ្រា

 

                                      

v  ការគិតលទ្ធភាពសង = (សរុបចំណូល - សរុបចំណាយ) * អត្រាកែតំរូវ

       Loan Size =

A :  abilty to repay

T :  time of Loan

I :  Interest rate

Calculating Interest Costs

                                    a.         Effective interest rate (EIR): most efficient measure of cost

                                    b.         Basic formula:

                                                EIR  =  Annual Interest Paid/Funds Received

•         Assuming interest payments (    ) = $100; principal payments at maturity (     ) = $1,000; yield to maturity (Y) = 10% and total number of periods (n) = 20. Thus, the price of binds (     );

•         Where:

•             =  Price of the bond;     =  Interest payments;      =  Principal payment at maturity; t = Number corresponding to a period (running from 1 to n); n = Number of periods; Y = Yield to maturity (or required rate of return)

Return on assets (investment) = Profit margin × Asset turnover

Return on equity = Return on assets (investment)

                                       (1 – Debt/Assets)

Items	Description
History of Company	Company must be in operation for three years without any interruption
Shareholders’ Equity	a) Shareholders’ Equity must have at least 5,000,000,000 Riels equal 1,250,000 US dollar on the submission of application. b) If the shareholders equity is less than 20,000,000,000 Riels ($5,000,000) must issue at least 20% of Total Shares. c) If the Shareholders Equity is more than 20,000,000,000 ($5,000,000)  must issue at least 15% of Total Shares.
Business Performance	Net Profit for the last year must be 500,000,000 Riels  ($125,000)
	Net Profit for the last three years at least 1,000,000,000 Riels ($250,000).

Audit Opinions	a)      Audit Opinion for the last year must unqualified.
	b)      Audit Opinion for the last two years must be Unqualified or Qualified Opinion.
Accounting Standard	Cambodia International Financial Report Standard (CIFRS)
Business Perspective	a) Business Stability b) Good Business Environment c)  Financial Stability
Management	Good management and transparency
Disclosure	No hidden information on disclosure documents
Other	a) Good plan to protect investors b) Good business plan and strategy

                 

v  ការគិតលទ្ធភាពសង = (សរុបចំណូល - សរុបចំណាយ) * អត្រាកែតំរូវ

       Loan Size =

A :  abilty to repay

T :  time of Loan

I :  Interest rate

Calculating Interest Costs

                                    a.         Effective interest rate (EIR): most efficient measure of cost

                                    b.         Basic formula:

                                                EIR  =  Annual Interest Paid/Funds Received

•         Assuming interest payments (    ) = $100; principal payments at maturity (     ) = $1,000; yield to maturity (Y) = 10% and total number of periods (n) = 20. Thus, the price of binds (     );

•         Where:

•             =  Price of the bond;     =  Interest payments;      =  Principal payment at maturity; t = Number corresponding to a period (running from 1 to n); n = Number of periods; Y = Yield to maturity (or required rate of return)

Return on assets (investment) = Profit margin × Asset turnover

Return on equity = Return on assets (investment)

                                       (1 – Debt/Assets)

Items	Description
History of Company	Company must be in operation for three years without any interruption
Shareholders’ Equity	a) Shareholders’ Equity must have at least 5,000,000,000 Riels equal 1,250,000 US dollar on the submission of application. b) If the shareholders equity is less than 20,000,000,000 Riels ($5,000,000) must issue at least 20% of Total Shares. c) If the Shareholders Equity is more than 20,000,000,000 ($5,000,000)  must issue at least 15% of Total Shares.
Business Performance	Net Profit for the last year must be 500,000,000 Riels  ($125,000)
	Net Profit for the last three years at least 1,000,000,000 Riels ($250,000).

Audit Opinions	a)      Audit Opinion for the last year must unqualified.
	b)      Audit Opinion for the last two years must be Unqualified or Qualified Opinion.
Accounting Standard	Cambodia International Financial Report Standard (CIFRS)
Business Perspective	a) Business Stability b) Good Business Environment c)  Financial Stability
Management	Good management and transparency
Disclosure	No hidden information on disclosure documents
Other	a) Good plan to protect investors b) Good business plan and strategy