Project evaluation & analysis.
The corporate-finance toolkit — capital-budgeting decisions, cost of capital, financial-statement analysis, and bankruptcy-risk indicators. Click any card to open the calculator with the formula loaded.
Project Evaluation
Decide whether a project, investment, or capital outlay is worth pursuing — discount cash flows, find implied returns, and compare projects of different sizes and lifespans.
Net Present Value (NPV)
Discount an arbitrary cash-flow stream at the cost of capital.
OpenInternal Rate of Return (IRR)
The rate that makes NPV exactly zero. Compare to your hurdle rate.
OpenModified IRR (MIRR)
IRR with explicit finance and reinvestment rates — the more honest version.
OpenEquivalent Annual Annuity
Standardize NPV across projects with different durations.
OpenProfitability & Cost of Capital
Measure how efficiently a firm generates returns and what those returns must clear to create value.
Return on Equity (ROE)
Net income relative to shareholders' equity.
OpenReturn on Invested Capital (ROIC)
NOPAT relative to all interest-bearing capital. The hurdle ROE doesn't fully reflect.
OpenWACC
Weighted average cost of debt and equity capital — the discount rate for unlevered free cash flow.
OpenCAPM (Cost of Equity)
Translate beta and equity risk premium into a required return on equity.
OpenLiquidity & Working Capital
Evaluate near-term solvency and operating efficiency — can the firm pay its bills, and how fast does cash cycle through operations?
Current Ratio
Current assets / current liabilities — the standard short-term liquidity check.
OpenQuick Ratio (Acid-Test)
Strips inventory from current assets — stricter than current ratio.
OpenWorking Capital
Dollar buffer of liquid assets above near-term obligations.
OpenCash Conversion Cycle
Days between paying suppliers and collecting from customers.
OpenLeverage & Solvency
Quantify capital-structure risk and bankruptcy probability — how aggressively the firm is financed and how much cushion remains.
Debt-to-Equity Ratio
Total interest-bearing debt vs shareholders' equity.
OpenInterest Coverage Ratio
How many times EBIT covers interest — the lender's favorite ratio.
OpenDegree of Financial Leverage
Sensitivity of EPS to a percentage change in EBIT.
OpenAltman Z-Score
Composite distress score combining five ratios into a single bankruptcy-risk indicator.
OpenWant the full analyst toolkit — DuPont decomposition, all turnover ratios, MIRR variants, sensitivity examples?
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