Current ratio =Current assetsCurrent Liabilities
Quick ratio = Current assets – InventoryCurrent Liabilities Cash ratio = CashCurrent liabilities
Total debt ratio =Total assets – Total equityTotal assets
Debt-equity ratio =Total debtTotal equity
Equity multiplier =Total assetsTotal equity
Time interest earned ratio =EBITInterest expense
Cash coverage ratio =EBIT + DepreciationInterest expense
Inventory turnover =Cost of goods soldInventory
Day’s sales in inventory =365 daysInventory turnover
Total assets turnover = SalesTotal assets

Profit margin =Net incomeSales

Return on assets (ROA) = Net incomeTotal assets

Return on equity (ROE) = Net incomeTotal equity
= ROA x Equity multiplier

The Dupont identify = Net incomeSales×SalesTotal assets ROA×AssetsTotal equity

= Profit margin × Total assets turnover ×Equity multiplier Earnings per share (EPS) = Net incomeOutstanding
PE ratio (Price-earnings ratio) =Price per shareEarnings per share Dividend payout ratio =Cash dividendNet income

Retention ratio =Addition to retained earningsNet income

Internal growth rate =ROA X b1 – ROE X b
Sustainable growth rate =ROE x b1 – ROE x b
with b = 1 – equity multiplier
Chapter 4: Return and Risk
If the present value of the benefits just equals the cost, you would earn a rate of return equal to the discount rate If the present value of the benefits exceeds the cost, you would earn a rate of return greater than the discount rate If the present value of the benefits is less than the cost, you would earn a rate of return less than the discount rate

Required return on investment j = Real rate of return + Expected inflation premium + Risk premium for investment j
= Risk-free rate + Risk premium for investment j
Rj = r* + IP + RPj = RF + RPj
Risk-free rate = Real rate of return + Expected inflation premium RF = r* + IP
Holding period return (HPR) (Lợi suất kì nắm giữ) =Current income + Capital gain of lossBeginning investment value
HPR...

...Important Microeconomic Formulas
Total Product = Quantity (Q)
Average Product (AP) = Total Product (Q) / Labour (L)
Marginal Product (MP) = Change in Total Product / Change in Labour
Profit = Total Revenue (TR) – Total Costs (TC)
Profit = (Average Revenue – Average Cost) x Quantity
Total Revenue (TR) = Price (P) x Quantity (Q)
Total Costs (TC) = Total Fixed Costs (TFC) + Total Variable Costs (TVC)
Total Cost (TC) = Average Cost (AC) x Quantity (Q)
Average Cost (AC) = Total Costs (TC) / Quantity (Q)
Average Fixed Costs (AFC) = Total Fixed Costs (TFC) / Quantity (Q)
Average Variable Costs (AVC) = Total Variable Costs TVC) / Quantity (Q)
Average Revenue (AR) = Total Revenue (TR) / Quantity (Q)
AR = P = Demand (Dd)
ATC = AC = TC/Q = TFC+TVC/Q
AFC = TFC/Q ;
Marginal Revenue (MR) = Change in Total Revenue / Change in Quantity
Marginal Cost (MC) = Change in Total Cost / Change in Quantity = ∆TC/∆Q, ∆TVC/∆Q
Explicit Costs = Payments to non-owners of the firm for the resources they supply.
Profit Maximization Quantity Level: Marginal Revenue = Marginal Cost( MR =MC)
Price celling : P= MC
Breakeven Point: Price = Average Cost
Break Even Point = AR = ATC
Shutdown Point: Price = Average Variable Cost
Key Steps To Profit Analysis
1. Marginal Revenue = Marginal Cost to find Quantity Profit Maximization
2. From Quantity go up to the Average Revenue Curve to find Price
3. From Quantity go up to the Average Cost Curve to find Cost
4. Draw...

...
What is the MetaStock Formula Language?
The MetaStock formula language is a special programming language used to define and create custom indicators, system tests, explorations, and experts. It is patterned after popular spreadsheet languages.
In its simplest form, the MetaStock formula language is comprised of high-level functions (e.g., mov(), rsi(), abs() ), mathematical operators (e.g., +, -, /, *), and parameters (open, high, low, close, etc.). Each of these basic components can be combined to create your own indicators with the Indicator Builder, backtest your trading ideas with the Enhanced System Tester, rank and filter your securities with The Explorer, and generate chart-specific feedback with the Expert Advisor.
In order to effectively use the Indicator Builder, Enhanced System Tester, Explorer, or Expert Advisor, you need to be familiar with the MetaStock formula language. The MetaStock formula language is the foundation and common link for each of these four tools.
The Indicator Builder will be used in this chapter to teach the MetaStock formula language. For specific tutorials on each of the four formula-based tools, refer to their specific chapters.
For information on the Equis Solution Provider program and the MetaStock Developers Kit, go to http://www.equis.com.
Price Array Identifiers:
One of the most basic building blocks of a formula is called a price array identifier. A price array identifier "identifies" specific price...