JAIIB Exam Study Material: Useful for JAIIB
1. CR = CA / CL2. Net Worth = CA - CL
3. DER = TL/TNW or debt/equity or TL/equity
4. Price Elasticity of Supply = (% change in quantity supplied/(% change in price)
5. PV = P / R * [(1+R)^T - 1]/(1+R)^T
6. PV = P / (1+R)^T
7. FV = P * (1 + R)^T
8. FV = P*(1-R)^T
9. FV = P / R * [(1+R)^T - 1]
10. FV = P / R * [(1+R)^T - 1] * (1+R)
11. EMI = P * R * [(1+R)^T/(1+R)^T-1)]
12. FV of annuity = A/r ×{(1+r)^n-1}
13. Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value)
SUMMARY OF ANNUITIES FORMULAS (Thanks Alind)
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1. If the question asks the FUTURE VALUE OF INVESTMENT AT THE END OF PERIOD, FVOA (Future Value of Ordinary Annuity) is applied.
FVOA = (C ÷ R) x { (1 + R)^T - 1 }
2. If the question asks the FUTURE VALUE OF INVESTMENT AT THE BEGINNING OF PERIOD, FVAD (Future Value of Annuity Due) is applied.
FVAD = (C ÷ R) x { (1 + R)^T - 1 } x (1 + R)
3. If the question asks the PRESENT VALUE OF INVESTMENT AT THE END OF PERIOD, PVOA (Present Value of Ordinary Annuity) is
applied.
PVOA = (C ÷ R) x { (1 + R)^T - 1 } ÷ (1 + R)^T
4. If the question asks the PRESENT VALUE OF INVESTMENT AT THE BEGINNING OF PERIOD, PVAD (Present Value of Annuity Due) is
applied.
PVAD = (C ÷ R) x { (1 + R)^T - 1 } x (1 + R) ÷ (1 + R)^T
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1. Raw material Turnover Ratio = Cost of RM used / Average stock of R M
2. SIP Turnover = Cost of Goods manufactured / Average stock of SIP
3. Debt Collection period = No. days or months or Weeks in a year/Debt Turnover Ratio.
4. Average Payment Period = No. days or months or Weeks in a year/Creditors Turnover Ratio.
5. Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory.
6. Debtors Turnover Ratio = Net Credit Sales / Average Debtors.
7. Creditors Turnover Ratio = Net Credit Purchases / Average Credits.
8. Defensive Interval Ratio = Liquid Assets / Projected Daily Cash Requirement
9. Projected daily cash requirement = Projected operating cash expenses / 365.
10. Debt Equity Ratio = Long Term Debt / Equity.
11. Debt Equity Ratio = Total outside Liability / Tangible Net Worth.
12. Debt to Total Capital Ratio = Total Debts or Total Assets/(Permanent Capital + Current Liabilities)
13. Interest Coverage Ratio = EBIT / Interest.
14. Dividend Coverage Ratio = N. P. after Interest & Tax / Preferential dividend
15. Gross Profit Margin = Gross Profit / Net Sales * 100
16. Net Profit Margin = Net Profit / Net Sales * 100
17. Cost of Goods Sold Ratio = Cost of Goods Sold / Net Sales * 100.
18. Operating Profit Ratio = Earnings Before Interest Tax / Net Sales * 100
19. Expenses Ratio or Operating Ratio = Expenses / Net Sales * 100
20. Net Profit Ratio = Net Profit After interest and Tax / Net Sales * 100
21. Operating Expenses Ratio = (Administrative + Selling expenses) / Net Sales * 100
22. Administrative Expenses Ratio =(Administrative Expenses / Net Sales ) * 100
23. Selling Expenses Ratio =(Selling Expenses / Net Sales ) * 100
24. Financial Expenses Ratio = ( Financial Expenses / Net Sales ) * 100
25. Return on Assets = Net Profit After Tax / Total Assets.
26. Total Assets = Net Fixed Assets + Net Working Capital.
27. Net Fixed Assets = Total Fixed Assets – Accumulated Depreciation.
28. Net Working Capital = ( CA –CL ) – ( Intangible Assets + Fictitious Assets + Idle Stock + Bad Debts )
29. Return on Capital Employed = Net Profit Before Interest and Tax / Average Capital Employed.
30. Average Capital employed = Equity Capital + Long Term Funds provided by Owners & Creditors at the beginning & at the end of the accounting period divided by two.
31. Return on Ordinary Share Holders Equity = (NPAT – Preferential Dividends) / Average Ordinary Share Holders Equity or Net Worth.
32. Earnings Per Share = Net Profit After Taxes and Preferential dividends / Number of Equity Share
