FinancialFormulas (financial_formulas v0.1.0)

Summary

Functions

Calculates the annual percentage yield (APY) of an investment.

Calculates the asset to sales ratio of an entity.

Calculates the asset turnover ratio of an entity.

Calculates the average collection period of an entity.

Calculates the average inventory period of an entity.

Calculates the bid ask spread of a security.

Calculates the bond equivalent yield of a bond.

Calculates the capital asset pricing model (CAPM).

Calculates the capital gains yield of an investment.

Calculates the continuous compounding of an investment.

Calculates the contribution margin per unit

Calculates the costs of goods sold of an entity.

Calculates the cost to income ratio of an entity.

Calculates the current ratio of an entity.

Calculates the current yield of a bond.

Calculates the inventory turnover of an entity.

Calculates the days payable outstanding of an entity.

Calculates the days sales of inventory of an entity.

Calculates the days sales outstanding of an entity.

Calculates the debt coverage ratio of an entity.

Calculates the debt ratio of an entity.

Calculates the debt to equity ratio of an entity.

Calculates the debt to income ratio of an entity.

Calculates the dividend payout ratio of an entity.

Calculates the dividend yield of an entity.

Calculates the divdends per share of an entity.

Calculates the doubling time of an investment.

Calculates the doubling time of an investment with continuous compounding.

Calculates the doubling time of an investment with simple interest.

Calculates the earnings per share of an entity.

Calculates the equity multiplier of an entity.

Calculates the estimated earnings of an entity.

Calculates the future value of an investment.

Calculates the future value of an investment with continuous compounding.

Calculates the future value of an annuity.

Calculates the geometric mean of a set of returns.

Calculates the gross profit margin of an entity.

Calculates the interest coverage ratio of an entity.

Calculates the inventory turnover ratio of an entity.

Calculates the loan to deposit ratio of an entity.

Calculates the margin of safety of an investment.

Calculates the market capitalization of an entity.

Calculates the market to book ratio of an entity.

Calculates the net asset value of an entity.

Calculates the net intrest income of an entity.

Calculates the net intrest margin of an entity.

Calculates the net intrest spread of an entity.

Calculates the net present value of an investment.

Calculates the net profit margin of an entity.

Calculates the net working capital of an entity.

Calculates the operating cycle of an entity.

Calculates the operating margin of an entity.

Calculates the payables turnover ratio of an entity.

Calculates the payback period of an investment.

Calculates the perpetuity yield.

Calculates the preferred stock value.

Calculates prevent value with continuous compounding.

Calculates the present value of perpetuity.

Calculates the price to dividend ratio.

Calculates the price to earnings ratio.

Calculates the price to sales ratio.

Calculates the real GDP.

Calculates the receivables turnover ratio of an entity.

Calculates the retained earnings of an entity.

Calculates the retention ratio.

Calculates the return on assets.

Calculates the return on investment.

Calculates the rule of 72.

Calculates the simple interest.

Calculates the tax equivalent yield.

Calculates the times interest earned ratio.

Transforms a number to a percentage.

Calculates the weighted average.

Calculates the year over year growth rate.

Functions

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annual_percentage_yield(nominal_interest_rate, number_of_times_compounded)

Calculates the annual percentage yield (APY) of an investment.

The annual percentage yield is the the rate of interest that is earned when taking into consideration the effect of compounding.

Formula

(1 + interest_rate / number_of_times_compounded) ^ number_of_times_compounded - 1

Required

  • nominal_interest_rate - The nominal interest rate of the investment.
  • number_of_times_compounded - The number of times the interest is compounded per year.

Examples

iex> FinancialFormulas.annual_percentage_yield(0.025, 12) 0.025288456983290075

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asset_to_sales_ratio(total_assets, sales_revenue)

Calculates the asset to sales ratio of an entity.

Formula

total_asset / total_sales

Required

  • total_assets - The total assets of the entity.
  • sales_revenue - The sales/revenue of the entity.

Examples

iex> FinancialFormulas.asset_to_sales_ratio(100000, 50000) 2.0

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asset_turnover_ratio(sales_revenue, total_assets)

Calculates the asset turnover ratio of an entity.

Formula

total_sales / total_asset

Required

  • sales_revenue - The sales/revenue of the entity.
  • total_asset - The total assets of the entity.

Examples

iex> FinancialFormulas.asset_turnover_ratio(50000, 100000) 0.5

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average_collection_period(receivables_turnover_ratio)

Calculates the average collection period of an entity.

Formula

365 / receivables_turnover_ratio

Required

  • receivables_turnover_ratio - The receivables turnover ratio of the entity.

Examples

iex> FinancialFormulas.average_collection_period(10) 36.5

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average_inventory(ending_inventory, beginning_inventory, number_of_periods \\ 2)

Calculates the average inventory of an entity.

Formula

(ending_inventory + beginning_inventory) / number_of_periods

Required

  • ending_inventory - The ending inventory of the entity.
  • beginning_inventory - The beginning inventory of the entity.

Optional

  • number_of_periods - The number of periods. Defaults to 2.

Examples

iex> FinancialFormulas.average_inventory(100, 50) 75.0

iex> FinancialFormulas.average_inventory(100, 50, 3) 50.0

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average_inventory_period(inventory_turnover, days_in_period \\ 365)

Calculates the average inventory period of an entity.

Formula

number_of_days_in_period / inventory_turnover

Required

  • inventory_turnover - The inventory turnover of the entity.

Optional

  • days_in_period - The number of days in the period. Defaults to 365.

Examples

iex> FinancialFormulas.average_inventory_period(10) 36.5

iex> FinancialFormulas.average_inventory_period(10, 180) 18.0

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average_payment_period(average_accounts_payable, credit_purchases, days_in_period \\ 365)

Calculates the average payment period of an entity.

Formula

average_accounts_payable / (credit_purchases / days_in_period)

Required

  • average_accounts_payable - The average accounts payable of the entity.
  • credit_purchases - The credit purchases of the entity.

Optional

  • days_in_period - The number of days in the period.

Examples

iex> FinancialFormulas.average_payment_period(23000, 100000) 83.95

iex> FinancialFormulas.average_payment_period(100, 200, 180) 90.0

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bid_ask_spread(ask_price, bid_price)

Calculates the bid ask spread of a security.

Formula

ask_price - bid_price

Required

  • ask_price - The ask price of the security.
  • bid_price - The bid price of the security.

Example

iex> FinancialFormulas.bid_ask_spread(10, 8) 2

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bond_equivalent_yield(face_value, purchase_price, days_to_maturity \\ 365)

Calculates the bond equivalent yield of a bond.

Formula

(face_value - bond_price) / bond_price * (365 / days)

Required

  • face_value - The face value of the bond.
  • purchase_price - The purchase price of the bond.

Optional

  • days_to_maturity - The number of days until the bond matures. Defaults to 365.

Examples

iex> FinancialFormulas.bond_equivalent_yield(110, 100, 180) 0.20277777777777778

iex> FinancialFormulas.bond_equivalent_yield(110, 100) 0.1

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book_value_per_share(shareholders_equity, perferred_equity, weighted_average_number_of_shares_outstanding)

Calculates the book value per share of an entity.

Formula

(total_common_equity - perferred_equity) / weighted_average_number_of_shares_outstanding

Required

  • shareholders_equity - The shareholders equity of the entity.
  • perferred_equity - The perferred equity of the entity.
  • weighted_average_number_of_shares_outstanding - The weighted average number of shares outstanding of the entity.

Examples

iex> FinancialFormulas.book_value_per_share(100, 10, 10) 9.0

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capital_asset_pricing_model(risk_free_rate, beta, market_retrun)

Calculates the capital asset pricing model (CAPM).

Formula

risk_free_rate + beta * (expected_market_return - risk_free_rate)

Required

  • risk_free_rate - The risk free rate.
  • beta - The beta of the investment.
  • market_retrun - The return on the market.

Examples

iex> FinancialFormulas.capital_asset_pricing_model(0.03, 0.8, 0.1) 0.08600000000000001

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capital_gains_yield(initial_price, final_price)

Calculates the capital gains yield of an investment.

Formula

(final_price - initial_price) / initial_price

Required

  • initial_price - The initial price of the investment.
  • final_price - The final price of the investment.

Examples

iex> FinancialFormulas.capital_gains_yield(10, 12) 0.2

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cash_conversion_cycle(days_inventory_outstanding, days_sales_outstanding, days_payable_outstanding)

Calculates the cash conversion cycle of an entity.

Formula

days_inventory_outstanding + days_sales_outstanding - days_payable_outstanding

Required

  • days_inventory_outstanding - The days inventory outstanding of the entity.
  • days_sales_outstanding - The days sales outstanding of the entity.
  • days_payable_outstanding - The days payable outstanding of the entity.

Examples

iex> FinancialFormulas.cash_conversion_cycle(82, 34, 66) 50

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compound_interest(principal, rate_per_period, number_of_years, number_of_periods_per_year \\ 12)

Calculates compound interest

Formula

principal (1 + rate_per_period / number_of_periods_per_year) ^ (number_of_periods_per_year number_of_years)

Required

  • principal - The principal amount.
  • rate_per_period - The interest rate per period.
  • number_of_years - The number of years.
  • number_of_periods_per_year - The number of periods per year. Defaults to 12.

Examples

iex> FinancialFormulas.compound_interest(5000, 0.05, 10) 8235.0474884514

iex> FinancialFormulas.compound_interest(5000, 0.05, 10, 12) 8235.0474884514

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continuous_compounding(principal, interest_rate, time)

Calculates the continuous compounding of an investment.

Formula

principal e ^ (rate time)

Required

  • principal - The principal amount.
  • interest_rate - The interest rate.
  • time - The time.

Examples

iex> FinancialFormulas.continuous_compounding(3000, 0.07, 5) 4257.202645779772

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contribution_margin(total_sales_revenue, variable_costs)

Calculates the contribution margin

Formula

total_sales_revenue - variable_costs

Required

  • total_sales_revenue - The total sales revenue
  • variable_costs - The variable costs

Examples

iex> FinancialFormulas.contribution_margin(1000, 500) 500

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contribution_margin_per_unit(price_per_unit, variable_cost_per_unit)

Calculates the contribution margin per unit

Formula

price_per_unit - variable_cost_per_unit

Required

  • price_per_unit - The price per unit
  • variable_cost_per_unit - The variable cost per unit

Examples

iex> FinancialFormulas.contribution_margin_per_unit(10, 5) 5

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contribution_margin_ratio(contribution_margin, total_sales_revenue)

Calculates the contribution margin ratio

Formula

contribution_margin / total_sales_revenue

Required

  • contribution_margin - The contribution margin
  • total_sales_revenue - The total sales revenue

Examples

iex> FinancialFormulas.contribution_margin_ratio(500, 1000) 0.5

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cost_of_goods_sold(beginning_inventory, purchases, ending_inventory)

Calculates the costs of goods sold of an entity.

Formula

beginning_inventory + purchases - ending_inventory

Required

  • beginning_inventory - The beginning inventory.
  • purchases - The purchases.
  • ending_inventory - The ending inventory.

Examples

iex> FinancialFormulas.cost_of_goods_sold(100, 200, 50) 250

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cost_to_income_ratio(operational_costs, operational_income)

Calculates the cost to income ratio of an entity.

Formula

operational_costs / operational_income

Required

  • operational_costs - The operational costs of the entity.
  • operational_income - The operational income of the entity.

Examples

iex> FinancialFormulas.cost_to_income_ratio(100, 200) 0.5

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current_ratio(current_assets, current_liabilities)

Calculates the current ratio of an entity.

Formula

current_assets / current_liabilities

Required

  • current_assets - The current assets of the entity.
  • current_liabilities - The current liabilities of the entity.

Examples

iex> FinancialFormulas.current_ratio(100, 200) 0.5

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current_yield(annual_coupons, current_price)

Calculates the current yield of a bond.

Formula

annual_income / current_price

Required

  • annual_coupons - The annual coupons of the bond.
  • current_price - The current price of the bond.

Examples

iex> FinancialFormulas.current_yield(100, 200) 0.5

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days_in_inventory(inventory_turnover)

Calculates the inventory turnover of an entity.

Formula

365 / inventory_turnover

Required

  • inventory_turnover - The inventory turnover of the entity.

Examples

iex> FinancialFormulas.days_in_inventory(10) 36.5

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days_payable_outstanding(accounts_payable, cost_of_goods_sold)

Calculates the days payable outstanding of an entity.

Formula

accounts_payable / cost_of_goods_sold * 365

Required

  • accounts_payable - The accounts payable of the entity.
  • cost_of_goods_sold - The cost of goods sold of the entity.

Examples

iex> FinancialFormulas.days_payable_outstanding(100, 200) 182.5

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days_sales_of_inventory(average_inventory, cost_of_goods_sold)

Calculates the days sales of inventory of an entity.

Formula

average_inventory / cost_of_goods_sold * 365

Required

  • average_inventory - The average inventory of the entity.
  • cost_of_goods_sold - The cost of goods sold of the entity.

Examples

iex> FinancialFormulas.days_sales_of_inventory(100, 200) 182.5

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days_sales_outstanding(accounts_receivable, total_credit_sales)

Calculates the days sales outstanding of an entity.

Formula

accounts_receivable / total_credit_sales * 365

Required

  • accounts_receivable - The accounts receivable of the entity.
  • total_credit_sales - The total credit sales of the entity.

Examples

iex> FinancialFormulas.days_sales_outstanding(100, 200) 182.5

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debt_coverage_ratio(net_operating_income, total_debt_service)

Calculates the debt coverage ratio of an entity.

Formula

net_operating_income / total_debt_service

Required

  • net_operating_income - The net operating income of the entity.
  • total_debt_service - The total debt service of the entity.

Examples

iex> FinancialFormulas.debt_coverage_ratio(100, 200) 0.5

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debt_ratio(total_liabilities, total_assets)

Calculates the debt ratio of an entity.

Formula

total_liabilities / total_assets

Required

  • total_liabilities - The total liabilities of the entity.
  • total_assets - The total assets of the entity.

Examples

iex> FinancialFormulas.debt_ratio(100, 200) 0.5

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debt_to_equity_ratio(total_liabilities, total_equity)

Calculates the debt to equity ratio of an entity.

Formula

total_liabilities / total_equity

Required

  • total_liabilities - The total liabilities of the entity.
  • total_equity - The total equity of the entity.

Examples

iex> FinancialFormulas.debt_to_equity_ratio(100, 200) 0.5

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debt_to_income_ratio(debt, income)

Calculates the debt to income ratio of an entity.

Formula

debt / income

Required

  • debt - The total debt of the entity.
  • income - The total income of the entity.

Examples

iex> FinancialFormulas.debt_to_income_ratio(100, 200) 0.5

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diluted_earnings_per_share(net_income, average_shares, other_convertible_instruments \\ 0)

Calculates the diluted earnings per share of an entity.

Formula

net_income / (average_shares + other_convertible_instruments)

Required

  • net_income - The net income of the entity.
  • average_shares - The average shares of the entity.
  • other_convertible_instruments - The other convertible instruments of the entity.

Examples

iex> FinancialFormulas.diluted_earnings_per_share(100, 200, 300) 0.2

iex> FinancialFormulas.diluted_earnings_per_share(100, 200) 0.5

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dividend_payout_ratio(dividends, net_income)

Calculates the dividend payout ratio of an entity.

Formula

dividends / net_income

Required

  • dividends - The dividends of the entity.
  • net_income - The net income of the entity.

Examples

iex> FinancialFormulas.dividend_payout_ratio(100, 200) 0.5

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dividend_yield(dividends, current_price)

Calculates the dividend yield of an entity.

Formula

dividends / current_price

Required

  • dividends - The dividends of the entity.
  • current_price - The current price of the entity.

Examples

iex> FinancialFormulas.dividend_yield(100, 200) 0.5

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dividends_per_share(dividends, shares)

Calculates the divdends per share of an entity.

Formula

dividends / shares

Required

  • dividends - The dividends of the entity.
  • shares - The shares of the entity.

Examples

iex> FinancialFormulas.dividends_per_share(100, 200) 0.5

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doubling_time(rate_of_returns)

Calculates the doubling time of an investment.

Formula

log(2) / log(1 + rate_of_returns)

Required

  • rate_of_returns - The rate of returns of the investment.

Examples

iex> FinancialFormulas.doubling_time(0.1) 7.272540897341713

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doubling_time_continuous_compounding(rate_of_returns)

Calculates the doubling time of an investment with continuous compounding.

Formula

log(2) / rate_of_returns

Required

  • rate_of_returns - The rate of returns of the investment.

Examples

iex> FinancialFormulas.doubling_time_continuous_compounding(0.1) 6.931471805599452

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doubling_time_simple(rate_of_returns)

Calculates the doubling time of an investment with simple interest.

Formula

1 / rate_of_returns

Required

  • rate_of_returns - The rate of returns of the investment.

Examples

iex> FinancialFormulas.doubling_time_simple(0.1) 10.0

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earnings_per_share(net_income, average_shares)

Calculates the earnings per share of an entity.

Formula

net_income / average_shares

Required

  • net_income - The net income of the entity.
  • average_shares - The average shares of the entity.

Examples

iex> FinancialFormulas.earnings_per_share(100, 200) 0.5

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ebit(sales_revenue, cost_of_goods_sold, operating_expenses)

Calculates the ebit of an entity.

Formula

sales_revenue - cost_of_goods_sold - operating_expenses

Required

  • sales_revenue - The sales/revenue of the entity.
  • cost_of_goods_sold - The cost of goods sold of the entity.
  • operating_expenses - The operating expenses of the entity.

Examples

iex> FinancialFormulas.ebit(100, 200, 300) -400

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ebitda(sales_revenue, cost_of_goods_sold, operating_expenses, depreciation_and_amortization)

Calculates the ebitda of an entity.

Formula

sales_revenue - cost_of_goods_sold - operating_expenses - depreciation_and_amortization

Required

  • sales_revenue - The sales/revenue of the entity.
  • cost_of_goods_sold - The cost of goods sold of the entity.
  • operating_expenses - The operating expenses of the entity.
  • depreciation_and_amortization - The depreciation and amortization of the entity.

Examples

iex> FinancialFormulas.ebitda(100, 200, 300, 400) -800

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equity_multiplier(total_assets, total_equity)

Calculates the equity multiplier of an entity.

Formula

total_assets / total_equity

Required

  • total_assets - The total assets of the entity.
  • total_equity - The total equity of the entity.

Examples

iex> FinancialFormulas.equity_multiplier(100, 200) 0.5

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estimated_earnings(forcasted_sales, forcasted_expenses)

Calculates the estimated earnings of an entity.

Formula

forcasted_sales - forcasted_expenses

Required

  • forcasted_sales - The forcasted sales of the entity.
  • forcasted_expenses - The forcasted expenses of the entity.

Examples

iex> FinancialFormulas.estimated_earnings(100, 200) -100

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free_cash_flow_to_equity(net_income, depreciation_and_amortization, capital_expenditures, change_in_working_capital, net_borrowing)

Calculates the free cash flow to equity of an entity.

Formula

net_income + depreciation_and_amortization - capital_expenditures - change_in_working_capital + net_borrowing

Required

  • net_income - The net income of the entity.
  • depreciation_and_amortization - The depreciation and amortization of the entity.
  • capital_expenditures - The capital expenditures of the entity.
  • change_in_working_capital - The change in working capital of the entity.
  • net_borrowing - The net borrowing of the entity.

Examples

iex> FinancialFormulas.free_cash_flow_to_equity(100, 200, 300, 400, 500) 100

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free_cash_flow_to_firm(ebit, tax_rate, depreciation_and_amortization, capital_expenditures, change_in_working_capital)

Calculates the free cash flow to firm of an entity.

Formula

ebit * (1 - tax_rate) + depreciation_and_amortization - capital_expenditures - change_in_working_capital

Required

  • ebit - The earnings before interest and taxes of the entity.
  • tax_rate - The tax rate of the entity.
  • depreciation_and_amortization - The depreciation and amortization of the entity.
  • capital_expenditures - The capital expenditures of the entity.
  • change_in_working_capital - The change in working capital of the entity.

Examples

iex> FinancialFormulas.free_cash_flow_to_firm(100, 200, 300, 400, 500) -20500

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future_value(initial_cash_flow, rate_of_returns, number_of_periods)

Calculates the future value of an investment.

Formula

initial_cash_flow * (1 + rate_of_returns) ^ number_of_periods

Required

  • initial_cash_flow - The initial cash flow of the investment.
  • rate_of_returns - The rate of returns of the investment.
  • number_of_periods - The number of periods.

Examples

iex> FinancialFormulas.future_value(100, 0.1, 2) 121.00000000000001

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future_value_continuous_compounding(present_value, rate_of_returns, number_of_periods)

Calculates the future value of an investment with continuous compounding.

Formula

present_value e ^ (rate_of_returns number_of_periods)

Required

  • present_value - The present value of the investment.
  • rate_of_returns - The rate of returns of the investment.
  • number_of_periods - The number of periods.

Examples

iex> FinancialFormulas.future_value_continuous_compounding(100, 0.1, 2) 122.14027581601698

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future_value_of_annuity(payment, interest_rate, number_of_payments)

Calculates the future value of an annuity.

Formula

payment * ((1 + interest_rate) ^ number_of_payments - 1) / interest_rate

Required

  • payment - The amount of each payment.
  • interest_rate - The interest rate of the investment.
  • number_of_payments - The number of payments.

Examples

iex> FinancialFormulas.future_value_of_annuity(100, 0.1, 2) 210.0000000000002

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geometric_mean(rate_of_returns)

Calculates the geometric mean of a set of returns.

Formula

(1 + rate_of_returns) ^ (1 / n) - 1

Required

  • rate_of_returns - The rate of returns of the investment.

Examples

iex> FinancialFormulas.geometric_mean([0.1, 0.2, 0.3]) 0.1972157672583763

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gross_profit_margin(sales_revenue, cost_of_goods_sold)

Calculates the gross profit margin of an entity.

Formula

(sales_revenue - cost_of_goods_sold) / sales_revenue

Required

  • sales_revenue - The sales/revenue of the entity.
  • cost_of_goods_sold - The cost of goods sold of the entity.

Examples

iex> FinancialFormulas.gross_profit_margin(100, 200) -1.0

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interest_coverage_ratio(ebit, interest_expense)

Calculates the interest coverage ratio of an entity.

Formula

ebit / interest_expense

Required

  • ebit - The earnings before interest and taxes of the entity.
  • interest_expense - The interest expense of the entity.

Examples

iex> FinancialFormulas.interest_coverage_ratio(100, 200) 0.5

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inventory_turnover_ratio(cost_of_goods_sold, average_inventory)

Calculates the inventory turnover ratio of an entity.

Formula

cost_of_goods_sold / average_inventory

Required

  • cost_of_goods_sold - The cost of goods sold of the entity.
  • average_inventory - The average inventory of the entity.

Examples

iex> FinancialFormulas.inventory_turnover_ratio(100, 200) 0.5

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loan_to_deposit_ratio(total_loans, total_deposits)

Calculates the loan to deposit ratio of an entity.

Formula

total_loans / total_deposits

Required

  • total_loans - The total loans of the entity.
  • total_deposits - The total deposits of the entity.

Examples

iex> FinancialFormulas.loan_to_deposit_ratio(100, 200) 0.5

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margin_of_safty(current_price, intrinsic_value)

Calculates the margin of safety of an investment.

Formula

(intrinsic_value - current_price) / intrinsic_value

Required

  • current_price - The current price of the investment.
  • intrinsic_value - The intrinsic value of the investment.

Examples

iex> FinancialFormulas.margin_of_safty(100, 200) 0.5

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market_capitalization(price_per_share, outstanding_shares)

Calculates the market capitalization of an entity.

Formula

price_per_share * outstanding_shares

Required

  • price_per_share - The price per share of the entity.
  • outstanding_shares - The outstanding shares of the entity.

Examples

iex> FinancialFormulas.market_capitalization(100, 200) 20000

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market_to_book_ratio(market_price_per_share, book_value_per_share)

Calculates the market to book ratio of an entity.

Formula

market_price_per_share / book_value_per_share

Required

  • market_price_per_share - The market price per share of the entity.
  • book_value_per_share - The book value per share of the entity.

Examples

iex> FinancialFormulas.market_to_book_ratio(100, 200) 0.5

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net_asset_value(assets, liabilities, shares)

Calculates the net asset value of an entity.

Formula

(assets - liabilities) / shares

Required

  • assets - The assets of the entity.
  • liabilities - The liabilities of the entity.
  • shares - The shares of the entity.

Examples

iex> FinancialFormulas.net_asset_value(100, 200, 300) -0.3333333333333333

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net_intrest_income(intrest_income, intrest_expense)

Calculates the net intrest income of an entity.

Formula

intrest_income - intrest_expense

Required

  • intrest_income - The intrest income of the entity.
  • intrest_expense - The intrest expense of the entity.

Examples

iex> FinancialFormulas.net_intrest_income(100, 200) -100

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net_intrest_margin(net_intrest_income, average_earning_assets)

Calculates the net intrest margin of an entity.

Formula

net_intrest_income / average_earning_assets

Required

  • net_intrest_income - The net intrest income of the entity.
  • average_earning_assets - The average earning assets of the entity.

Examples

iex> FinancialFormulas.net_intrest_margin(100, 200) 0.5

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net_intrest_spread(intrest_income_rate, intrest_expense_rate)

Calculates the net intrest spread of an entity.

Formula

intrest_income_rate - intrest_expense_rate

Required

  • intrest_income_rate - The intrest income rate of the entity.
  • intrest_expense_rate - The intrest expense rate of the entity.

Examples

iex> FinancialFormulas.net_intrest_spread(100, 200) -100

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net_present_value(initial_investment, cash_flows, discount_rate)

Calculates the net present value of an investment.

Formula

sum(cash_flows / (1 + discount_rate) ^ index) - initial_investment

Required

  • initial_investment - The initial investment of the entity.
  • cash_flows - The cash flows of the entity.
  • discount_rate - The discount rate of the entity.

Examples

iex> FinancialFormulas.net_present_value(100, [100, 200, 300], 0.5) 144.44444444444443

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net_profit_margin(net_income, sales_revenue)

Calculates the net profit margin of an entity.

Formula

net_income / sales_revenue

Required

  • net_income - The net income of the entity.
  • sales_revenue - The sales/revenue of the entity.

Examples

iex> FinancialFormulas.net_profit_margin(100, 200) 0.5

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net_working_capital(current_assets, current_liabilities)

Calculates the net working capital of an entity.

Formula

current_assets - current_liabilities

Required

  • current_assets - The current assets of the entity.
  • current_liabilities - The current liabilities of the entity.

Examples

iex> FinancialFormulas.net_working_capital(100, 200) -100

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operating_cycle(days_inventory_outstanding, days_sales_outstanding)

Calculates the operating cycle of an entity.

Formula

days_inventory_outstanding + days_sales_outstanding

Required

  • days_inventory_outstanding - The days inventory outstanding of the entity.
  • days_sales_outstanding - The days sales outstanding of the entity.

Examples

iex> FinancialFormulas.operating_cycle(100, 200) 300

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operating_margin(operating_income, sales_revenue)

Calculates the operating margin of an entity.

Formula

operating_income / sales_revenue

Required

  • operating_income - The operating income of the entity.
  • sales_revenue - The sales/revenue of the entity.

Examples

iex> FinancialFormulas.operating_margin(100, 200) 0.5

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payables_turnover_ratio(cost_of_goods_sold, average_accounts_payable)

Calculates the payables turnover ratio of an entity.

Formula

cost_of_goods_sold / average_accounts_payable

Required

  • cost_of_goods_sold - The cost of goods sold of the entity.
  • average_accounts_payable - The average accounts payable of the entity.

Examples

iex> FinancialFormulas.payables_turnover_ratio(100, 200) 0.5

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payback_period(initial_investment, periodic_cash_flows)

Calculates the payback period of an investment.

Formula

initial_investment / periodic_cash_flows

Required

  • initial_investment - The initial investment of the entity.
  • periodic_cash_flows - The periodic cash flows of the entity.

Examples

iex> FinancialFormulas.payback_period(100, 200) 0.5

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perpetuity_yield(payment, present_value)

Calculates the perpetuity yield.

Formula

payment / present_value

Required

  • payment - The payment of the entity.
  • present_value - The present value of the entity.

Examples

iex> FinancialFormulas.perpetuity_yield(100, 200) 0.5

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preferred_stock_value(dividend, discount_rate)

Calculates the preferred stock value.

Formula

dividend / discount_rate

Required

  • dividend - The dividend of the entity.
  • discount_rate - The discount rate of the entity.

Examples

iex> FinancialFormulas.preferred_stock_value(100, 200) 0.5

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present_value(future_value, rate_of_return, number_of_periods)

Calculates the present value.

Formula

cash_flow / (1 + rate_of_return) ^ number_of_periods

Required

  • future_value - The future value of the entity.
  • rate_of_return - The rate of return of the entity.
  • number_of_periods - The number of periods of the entity.

Examples

iex> FinancialFormulas.present_value(100, 200, 1) 0.4975124378109453

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present_value_continuous_compounding(future_value, rate_of_return, time)

Calculates prevent value with continuous compounding.

Formula

cash_flow / e ^ (rate * time)

Required

  • future_value - The future value of the entity.
  • rate_of_return - The rate of return of the entity.
  • time - The number of periods of the entity.

Examples

iex> FinancialFormulas.present_value_continuous_compounding(1, 2, 1) 0.1353352832366127

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present_value_of_perpetuity(coupon_per_period, discount_rate)

Calculates the present value of perpetuity.

Formula

coupon_per_period / discount_rate

Required

  • coupon_per_period - The coupon per period of the entity.
  • discount_rate - The discount rate of the entity.

Examples

iex> FinancialFormulas.present_value_of_perpetuity(100, 200) 0.5

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price_to_book_value(price_per_share, book_value_per_share)

Calculates the price to book value.

Formula

price_per_share / book_value_per_share

Required

  • price_per_share - The price per share of the entity.
  • book_value_per_share - The book value per share of the entity.

Examples

iex> FinancialFormulas.price_to_book_value(100, 200) 0.5

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price_to_cash_flow(market_capitalization, operating_cash_flow)

Calculates the price to cash flow.

Formula

market_capitalization / cash_flow

Required

  • market_capitalization - The market capitalization of the entity.
  • cash_flow - The cash flow of the entity.

Examples

iex> FinancialFormulas.price_to_cash_flow(100, 200) 0.5

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price_to_dividend_ratio(price_per_share, dividend_per_share)

Calculates the price to dividend ratio.

Formula

price_per_share / dividend_per_share

Required

  • price_per_share - The price per share of the entity.
  • dividend_per_share - The dividend per share of the entity.

Examples

iex> FinancialFormulas.price_to_dividend_ratio(100, 200) 0.5

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price_to_earnings_ratio(price_per_share, earnings_per_share)

Calculates the price to earnings ratio.

Formula

price_per_share / earnings_per_share

Required

  • price_per_share - The price per share of the entity.
  • earnings_per_share - The earnings per share of the entity.

Examples

iex> FinancialFormulas.price_to_earnings_ratio(100, 200) 0.5

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price_to_sales_ratio(price_per_share, sales_per_share)

Calculates the price to sales ratio.

Formula

price_per_share / sales_per_share

Required

  • price_per_share - The price per share of the entity.
  • sales_per_share - The sales per share of the entity.

Examples

iex> FinancialFormulas.price_to_sales_ratio(100, 200) 0.5

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profitability_index(present_value_of_future_cash_flows, initial_investment)

Calculates the profitability index.

Formula

present_value_of_future_cash_flows / initial_investment

Required

  • present_value_of_future_cash_flows - The present value of future cash flows of the entity.
  • initial_investment - The initial investment of the entity.

Examples

iex> FinancialFormulas.profitability_index(100, 200) 0.5

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quick_ratio(quick_assets, current_liabilities)

Calculates the quick ratio.

Formula

quick_assets / current_liabilities

Required

  • quick_assets - The quick assets of the entity.
  • current_liabilities - The current liabilities of the entity.

Examples

iex> FinancialFormulas.quick_ratio(100, 200) 0.5

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quick_ratio(current_assets, inventory, current_liabilities)

Calculates the quick ratio.

Formula

(current_assets - inventory) / current_liabilities

Required

  • current_assets - The current assets of the entity.
  • inventory - The inventory of the entity.
  • current_liabilities - The current liabilities of the entity.

Examples

iex> FinancialFormulas.quick_ratio(100, 200, 300) -0.3333333333333333

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real_gdp(nominal_gdp, gdp_deflator)

Calculates the real GDP.

Formula

nominal_gdp / gdp_deflator

Required

  • nominal_gdp - The nominal GDP.
  • gdp_deflator - The GDP deflator.

Examples

iex> FinancialFormulas.real_gdp(100, 200) 0.5

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receivables_turnover_ratio(net_credit_sales, average_accounts_receivable)

Calculates the receivables turnover ratio of an entity.

Formula

net_credit_sales / average_accounts_receivable

Required

  • net_credit_sales - The net credit sales of the entity.
  • average_accounts_receivable - The average accounts receivable of the entity.

Examples

iex> FinancialFormulas.receivables_turnover_ratio(100, 200) 0.5

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retained_earnings(net_income, dividends)

Calculates the retained earnings of an entity.

Formula

net_income - dividends

Required

  • net_income - The net income of the entity.
  • dividends - The dividends of the entity.

Examples

iex> FinancialFormulas.retained_earnings(100, 200) -100

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retention_ratio(net_income, dividends)

Calculates the retention ratio.

Formula

(net_income - dividends) / net_income

Required

  • net_income - The net income of the entity.
  • dividends - The dividends of the entity.

Examples

iex> FinancialFormulas.retention_ratio(100, 200) -1.0

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return_on_assets(net_income, average_total_assets)

Calculates the return on assets.

Formula

net_income / average_total_assets

Required

  • net_income - The net income of the entity.
  • average_total_assets - The average total assets of the entity.

Examples

iex> FinancialFormulas.return_on_assets(100, 200) 0.5

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return_on_equity(net_income, average_shareholder_equity)

Calculates the return on equity.

Formula

net_income / average_shareholder_equity

Required

  • net_income - The net income of the entity.
  • average_shareholder_equity - The average shareholder equity of the entity.

Examples

iex> FinancialFormulas.return_on_equity(100, 200) 0.5

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return_on_investment(initial_investment, earnings)

Calculates the return on investment.

Formula

(earnings - initial_investment) / initial_investment

Required

  • initial_investment - The initial investment of the entity.
  • earnings - The earnings of the entity.

Examples

iex> FinancialFormulas.return_on_investment(100, 200) 1.0

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risk_premium(asset_or_investment_return, risk_free_return)

Calculates the risk premium.

Formula

asset_or_investment_return - risk_free_return

Required

  • asset_or_investment_return - The asset or investment return.
  • risk_free_return - The risk free return.

Examples

iex> FinancialFormulas.risk_premium(100, 200) -100

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rule_of_72(rate_of_return)

Calculates the rule of 72.

Formula

72 / rate_of_return

Required

  • rate_of_return - The rate of return as a whole number.

Examples

iex> FinancialFormulas.rule_of_72(100) 0.72

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simple_interest(principal, interest_rate, time)

Calculates the simple interest.

Formula

principal interest_rate time

Required

  • principal - The principal amount.
  • interest_rate - The interest rate.
  • time - The time.

Examples

iex> FinancialFormulas.simple_interest(100, 200, 300) 6000000

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straight_line_depreciation(initial_value, salvage_value, useful_life)

Calculates the straight line depreciation.

Formula

(initial_value - salvage_value) / useful_life

Required

  • initial_value - The initial value.
  • salvage_value - The salvage value.
  • useful_life - The useful life.

Examples

iex> FinancialFormulas.straight_line_depreciation(100, 200, 300) -0.3333333333333333

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tax_equivalent_yield(tax_free_yield, tax_rate)

Calculates the tax equivalent yield.

Formula

tax_free_yield / (1 - tax_rate)

Required

  • tax_free_yield - The tax free yield.
  • tax_rate - The tax rate.

Examples

iex> FinancialFormulas.tax_equivalent_yield(100, 200) -0.5025125628140703

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times_interest_earned_ratio(ebit, interest_expense)

Calculates the times interest earned ratio.

Formula

ebit / interest_expense

Required

  • ebit - The earnings before interest and taxes of the entity.
  • interest_expense - The interest expense of the entity.

Examples

iex> FinancialFormulas.times_interest_earned_ratio(100, 200) 0.5

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to_percentage(number)

Transforms a number to a percentage.

Required

  • number - The number to transform.
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total_stock_return(initial_stock_price, ending_stock_price, dividends)

Calculates the total stock return.

Formula

(ending_stock_price - initial_stock_price + dividends) / initial_stock_price

Required

  • initial_stock_price - The initial stock price.
  • ending_stock_price - The ending stock price.
  • dividends - The dividends.

Examples

iex> FinancialFormulas.total_stock_return(100, 200, 50) 1.5

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weighted_average(list)

Calculates the weighted average.

Formula

(weight1 value1) + (weight2 value2) + ... + (weightN * valueN)

Required

  • list - The list of weights and values.

Examples

iex> FinancialFormulas.weighted_average([{0.5, 100}, {0.5, 200}]) 150.0

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year_over_year(current_year, previous_year)

Calculates the year over year growth rate.

Formula

(current_year - previous_year) / previous_year

Required

  • current_year - The current year value
  • previous_year - The previous year value

Examples

iex> FinancialFormulas.year_over_year(100, 200) -0.5