formula-sheet
CFA Level I Financial Statement Analysis Formula Sheet
Public formula sheet for ratios, DuPont analysis, cash flow metrics, and inventory effects.
TL;DR
FSA formulas focus on profitability, liquidity, leverage, efficiency, cash flow, and inventory accounting impacts.
Formula Reference
Current ratio
Current ratio = current assets / current liabilitiesLiquidity measure.
ROE
ROE = net income / average equityProfitability to common shareholders.
DuPont ROE
ROE = net margin x asset turnover x financial leverageBreaks ROE into operating and financing drivers.
CFO direct logic
CFO = cash collected from customers - cash paid to suppliers/employees/etc.Direct method presentation of operating cash flow.
BA II Plus Keystrokes
- Use basic arithmetic and STO/RCL for ratio chains.
- Store sales, assets, equity, and net income when decomposing ROE.
- Use percentage display only after final calculation.
Worked Example
- Net margin = 8 percent, asset turnover = 1.5, leverage = 2.0.
- ROE = 0.08 x 1.5 x 2.0 = 24 percent.
Common Mistakes
- Using ending balance sheet values when averages are required.
- Mixing pre-tax and after-tax metrics.
- Forgetting that IFRS and US GAAP can classify some cash flows differently.
Related Guides
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- CFA Level I Quantitative Methods Calculation Guide - Formulas, examples, and calculator workflows for CFA Level I quantitative methods.
- CFA Level I Portfolio Management Formula Sheet - Public formula sheet for expected return, variance, CAPM, Sharpe ratio, and performance measurement.