49 Formulas, Revised Second Edition

Table of Contents

Financial Ratios


  • Current Ratio 
  • Quick Ratio or Acid Test 
  • Net Working Capital to Total Assets Ratio


  • Inventory Turnover 
  • Fixed Asset Turnover 
  • Total Assets Turnover 


  • Debt Ratio 
  • Debt to Equity Ratio 


  • Gross Profit Margin 
  • Net Profit Margin 
  • EBITDA Margin 
  • Return on Assets (ROA) 
  • Return on Equity (ROE)
  • Earnings per Share (EPS)
  • Price / Earnings Ratio (P/E Ratio) 

Time Value of Money 

  • Future Value of a Single Amount 
  • Future Value of a Series of Equal Payments 
  • Sinking Fund – Payments Needed to Accumulate to a Future Amount
  • Present Value of a Single Amount 
  • Present Value of a Series of Equal Payments
  • Payments Needed to Amortize a Present Amount 
  • Effective Interest rate 

Capital Budgeting 

  • Simple Payback Period 
  • Return on Investment (ROI)
  • Net Present Value (NPV) 
  • Internal Rate of Return (IRR) 
  • Financial Management Rate of Return (FMRR)

Valuation & Mortgage 

  • Income Capitalization Method
  • Loan to Value Ratio 
  • Debt Service Coverage Ratio 
  • Mortgage Calculation, Remaining Balance, and Interest Expense 

REIT Terms 

  • Adjusted Funds from Operations (AFFO)
  • AFFO Yield (Adjusted Funds from Operations Yield) 
  • Funds from Operations (FFO) 
  • Straight-lining 


  • Full Time Equivalent Employee (FTE)
  • Direct Labor Rate Variance 

Measurement Conversion 

  • Electricity to BTUs 
  • Natural Gas to BTUs 
  • Propane to BTUs 
  • Steam to BTUs 
  • Chilled Water to BTUs 
  • Fuel Oil to BTUs 
  • BTUs to Tons Air Conditioning 
  • Fahrenheit to Centigrade 
  • Centigrade to Fahrenheit 
  • Square Feet to Square Meters 
  • Square Meters to Square Feet