What is Return on Assets (ROA)? Return on Assets (ROA) is a financial ratio that measures a company’s profitability relative to its total assets. It shows how effectively a business is using its assets to generate net income over a specific time period. ROA is a valuable tool for comparing performance across companies or tracking…
Accounting Rate of Return Template This accounting rate of return template will demonstrate two examples of ARR calculations. Below is a screenshot of the accounting rate of return template: Download the Free Template Accounting Rate of Return (ARR) is the average net income an asset is expected to generate divided by its average capital cost and…
Net Working Capital Template This net working capital template allows you to compute the net working capital using the formula: Net Working Capital = Current Assets (less cash) – Current Liabilities (less debt) Below is a preview of the net working capital template: Download the Free Net Working Capital Template Net Working Capital (NWC) is the…
Tax Shield Example Template This tax shield example template shows how interest tax shield and depreciated tax shield are calculated. Here is what the tax shield example template looks like: Download the Free Template A Tax Shield is an allowable deduction from taxable income that results in a reduction of taxes owed. Tax shields differ between…
Effective Annual Rate Calculator The following effective annual rate calculator will help you compute the effective annual rate given the nominal interest rate and the number of compounding periods. Below is a screenshot of the effective annual rate calculator: Download the Free Template The Effective Annual Rate (EAR) is the rate of interest actually earned on an…
Effective Annual Interest Rate Calculator This effective annual interest rate calculator helps you calculate the EAR given the nominal interest rate and number of compounding periods. Below is a screenshot of the effective annual interest rate calculator: Download the Free Template The Effective Annual Interest Rate (EAR) is the rate of interest actually earned on an investment…
Cash Flow Reconciliation Template This cash flow reconciliation template will help you differentiate between EBITDA, CF, FCF, and FCFF. Below is a preview of the cash flow reconciliation template: Download the Free Template EBITDA vs. Cash Flow vs. Free Cash Flow vs. Unlevered Free Cash Flow There are major differences between EBITDA, Cash Flow, Free Cash Flow, and…
WACC Calculator This WACC calculator helps you calculate WACC based on capital structure, cost of equity, cost of debt, and tax rate. Here is a preview of the WACC calculator: Weighted Average Cost of Capital (WACC) represents a company’s blended cost of capital across all sources, including common shares, preferred shares, and debt. The cost of…
EBITDA Multiple Template This EBITDA multiple template helps you find out the EBITDA multiple given the line items for determining the enterprise value. This is what the EBITDA multiple template looks like: Download the Free Template Download CFI’s Excel template to advance your finance knowledge and perform better financial analysis. The EBITDA multiple is a financial ratio…
Sensitivity Analysis Table Template This sensitivity analysis table template helps you predict sales revenue based on changes in input variables including traffic growth, unit price, and sales volume. Below is a screenshot of the sensitivity analysis table template: Download the Free Template Sensitivity Analysis is a tool used in financial modeling to analyze how the different values…
