Financial Formulas and Ratios
Financial acronyms
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Welcome to the Financial Formulas and Ratios section. Here, you'll discover a comprehensive collection of the essential formulas that drive financial analysis and decision-making. Whether you're a student, professional, or enthusiast, this resource will help demystify complex calculations and enhance your financial proficiency.
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Financial formulas ordered by section
Arithmetic (3)
Numerical Analysis and Statistics (3)
Time Value of Money (23)
- Simple interest with sub-annual interest periods
- Simple interest (annual interest calculation)
- Calculation of a real interest rate (Fisher equation)
- Forward interest rate
- Present value of a single cash flow (sub-annual compounding of interest)
- Present value of a single cash flow (annual compounding of interest)
- Present value of a series of equal annual cash flows
- Present value of a series of unequal annual cash flows
- Future value of a single cash flow (sub-annual compounding of interest)
- Future value of a single cash flow (annual compounding of interest)
- Future value of a series of n cash flows placed at the start of each interest period for n periods
- Future value of a series of n cash flows placed at the end of each interest period for n periods
- Cash flows required for the constitution of a capital
- Discount factor calculation based on present and future values
- Discount factor calculation based on periodic interest rate and number of periods
- Proportional periodic interest rate equivalent to a simple annual interest rate
- Periodical compound interest rate equivalent to an annual compound interest rate
- Simple annual interest rate equivalent to a proportional periodic interest rate
- Annual compound interest rate equivalent to a periodical compound interest rate
- Conversion of a nominal interest rate into an effective interest rate
Interest calculations (4)
Present value (4)
Future value (5)
Compound interest - interest rate (1)
Yield (2)
Discount factor (2)
Interest rate conversions and comparisons (5)
Loans (5)
- Maximum loan amount with a given annuity, interest rate and duration
- Calculation of the capital repaid after n periods
- Capital remaining to be repaid after n periods
Loan annuity (1)
Loan amount (3)
Loan duration (1)
Fixed Income (24)
- Formula for Calculating the Price of a Coupon Bond
- Price of a perpetual bond
- Accrued interest rate of a bond
- Bond yield quick approximation
- Yield of a coupon bond
- Yield of a perpetual bond
- Convexity of a bond
- Convexity adjustment
- Macaulay duration
- Modified duration
- PVBP by the modified duration
- PVBP by the yield change
- Basis of a bond
- Implied repo rate (IRR)
- Year fraction
- Accrued interest rate of an inflation-indexed bond
- Inflation indexation coefficient for a given value date
- Inflation index reference for a given date
Bonds (15)
Indexed bonds (3)
Zero-coupon bonds (1)
Forward Rate Agreement (FRA) (1)
Money market securities (4)
Foreign Exchange (1)
Financial Analysis (28)
- Return on total assets (ROTA)
- Accounting rate of return (ARR)
- Return on assets (ROA)
- Return on equity (ROE)
- Return on capital employed (ROCE)
- Days payables outstanding (DPO)
- Cash conversion cycle (CCC)
- Cash ratio
- Current ratio
- Days sales in inventory (DSI)
- Days of sales outstanding (DSO)
- Operating cycle
- Average day's purchases
- Quick ratio (or acid test ratio)
- Gross profit margin (GPM)
- Gross profit
- Operating income
- Operating profit margin (OPM)
- Net profit margin (NPM)
Return on investment ratios (5)
Liquidity ratios (9)
Profitability ratios (5)
Activity ratios (4)
Financial leverage (5)
Equity markets (4)
Equity (4)
Technical Analysis (1)
Options (21)
- Valuation of a European call option (Black & Scholes model)
- Valuation of a European put option (Black & Scholes model)
- Value of a call option at expiry
- Value of a put option at expiry
- Payoff at expiry for the purchase of a call option
- Payoff at expiry for the sale of a call option
- Payoff at expiry for the purchase of a put option
- Payoff at expiry for the sale of a put option
- Value at expiry of a lookback call option with fixed strike
- Value at expiry of a lookback put option with fixed strike
- Value at expiry of a lookback call option with variable strike
- Value at expiry of a lookback put option with variable strike
- Delta of a call option
- Delta of a put option
- Gamma of an option
- Vega of an option
- Theta of a call option
- Theta of a put option
- Rho of a call option
- Rho of a put option