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Financial Formulae

The formulae related to finance which helps bankers and also students.

 

KEY FINANCIALS

 

  • TOI: Sales – Excise Duty + Other recurring income incidental to main business

  • EBIDTA: TOI - Operating Expenses excl. Interest, Depreciation & Amortization.

  • EBIDTA/TOI (%): EBIDTA/TOI

  • Interest: Interest on borrowings

  • Depreciation : Depreciation for the year

  • Operating Profit: EBIDTA-Interest-Depreciation(In case of any special item like lease rentals, amortization etc., between EBIDTA & OP, it need to be calculated appropriately)

  • Non-Operating Income: Income not from normal course of business net of non-operating expenses

  • PBT: Operating Profit + Non-operating Income

  • PAT: PBT-Tax (incl. Deferred Tax, Exclude Deferred tax asset).

  • PAT/TOI (%): PAT/TOI

  • Net Cash Accruals: PAT + Depreciation – Dividend + Non-Cash charges + Deferred Tax Provision

  • Net Worth: Ordinary Share Capital + Share Application Money + General Reserve + Balance in profit and loss A/c + Share Premium + Revaluation Reserve + Other Reserve + Quasi Equity.

  • Tangible Net worth (TNW):- Net worth – Revaluation Reserves – Intangible assets (patents, goodwill, preliminary. Expenses, bad / doubtful expenses not provided for etc.)

  • Adjusted Tangible Net worth: TNW- Exposure in Group Companies.

  • Exposure in Subsidiaries / Group Companies: Investments + Loans and Advances

  • Investments: Investments in subsidiaries / Group companies

  • Loans and advances: Loans & Advances subsidiaries / Group companies

  • Long Term Debt (LTD): Debt greater than one year (term loans, debentures, preference shares, other term liabilities) excluding installments due within one year

  • Short Term Debt (STD): Debt due within one year (includes demand loans, unsecured loans etc.) but excluding Working Capital Bank Finance.

  • Working Capital Bank Finance: Secured and Unsecured Working Capital availed from the Banks (include, Bills discounted / purchased, Cash Credit / WCDL, Demand loans, Export finance etc.)

  • Total Debt: Long Term Debt (LTD) + Short Term Debt (STD) + Working Capital Bank Finance.

  • TOL: Total Current Liabilities + Total Term liabilities + Deferred Tax Liability.

  • Total Debt/TNW:

  • LTD/TNW:

  • TOL/TNW: 3 is Good

  • TOL/ATNW:

  • Total Debt/NCA: <4

  • Total Current Assets: All assets with maturity less than one year

  • Total Current Liabilities : Total liabilities with maturity less than one year, including installments of term liabilities / DPGs due within one year.

  • Net Working Capital: CA-CL

  • Current ratio: CA/CL

  • ROCE (%): (Operating Profit + Interest + Lease rentals) / {Net fixed Assets + Investments + Total current assets – Provisions – Sundry creditors + Outstanding lease rentals}

  • Interest Coverage Ratio: PAT + Depreciation + Amortization + Interest + lease rentals + Deferred tax provision} / Interest + lease rentals}.

  • DSCR: PAT + Deferred tax provision + Depreciation + Amortization + lease rentals + long-term interest}/{lease rentals + long-term interest + long term repayments}

 

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User Comments
  1. Lalita

    On May 16, 2011 at 12:12 am


    pretty good informative site

  2. Vassant

    On May 16, 2011 at 12:20 am


    Nice informative site. Cleared many doubts what i had related to finance.

  3. Lalitha

    On May 16, 2011 at 12:24 am


    Nice site

  4. Sunetra

    On May 16, 2011 at 12:37 am


    This is really a good site, where one can get a fair idea of the financial jargons, and the functions related to them…..good work.

  5. Divya

    On May 16, 2011 at 1:22 am


    Intresting nd informative site…

  6. Deepthi

    On May 16, 2011 at 3:20 am


    Good work srikrishna. Its so informative dear..

  7. Debt tnw | Litofoto

    On April 21, 2012 at 6:50 pm


    [...] Financial Formulae | SocybertyMay 15, 2011 … Total Debt/TNW: LTD/TNW: TOL/TNW: 3 is Good. TOL/ATNW: Total Debt/NCA: <4 . Total Current Assets: All assets with maturity less than one … [...]

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