## 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

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