Financial

The following are functions of the Financial type.

DDB(cost, salvage, life, period, factor)

DDB returns a number specifying the depreciation of an asset for a specific time period, using the double-declining balance method or another method as specified by the factor argument.

Overloads

Parameters

Return value

Number value.

Examples

Suppose a company purchases a fleet of cars for $560,000. The cars have a lifetime of 12 years and a salvage value of $30,000. They are depreciated using the double-declining method.

FRAccRecTurnover(Number accountReceivable, Number sales, DbDouble numOfDays)

This function computes the turnover of the account receivable.

Parameters

Return value

The return value is a Number.

Examples

FRCashFlowVsTotalDebt(Number cashFlow,Number totalDebt)

This function returns the result of cash flow vs total debt.

Parameters

Return value

The return value is a Number.

Example

If the cash flow is 250000.00, the total debt is 280000.00, the return value of the following statement is 0.89.

FRCashFlowVsTotalDebt(250000.00, 280000.00)

FRCurrentRatio(Number curAssets, Number curLiabilities)

This function computes the current ratio.

Parameters

Return value

The return value is a Number.

Example

If the current assets are 1800000.00, the current liabilities are 150000.00, the return value of the following statement is 12.00.

FRCurrentRatio(1800000.00, 150000.00)

FRDebtEquityRatio(Number totalLiabilities, Number totalEquity)

This function computes the debt equity ratio.

Parameters

Return value

The return value is a Number.

Example

If the total liabilities are 175000.00, the total equity is 215000.00, the return value of the following statement is 0.81.

FRDebtEquityRatio(175000.00, 215000.00)

FRDividendYield(Number dividEnd, Number marketPrice)

This function computes the dividend yield.

Parameters

Return value

The return value is a Number.

Example

If the dividend is 9.85, the market price is 10.87, the return value of the following statement is 0.91.

FRDividendYield(9.85, 10.87)

FREarningsPerCommonShare(Number netProfit, Number preferredDividend, DbDouble numOfCommonShare)

This function computes the earnings of per common share.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the preferred dividend is 180000.00, the number of common shares is 10000, the return value of the following statement is 12.

FREarningsPerCommonShare(300000.00, 180000.00, 10000)

FREquityVsTotalAssets(Number totalEquity, Number totalAssets)

This function returns the result of equity vs. total assets.

Parameters

Return value

The return value is a Number.

Example

If the total equity is 215000.00, the total assets are 2200000.00, the return value of the following statement is 0.10.

FREquityVsTotalAssets(215000.00, 2200000.00)

FRGrossProfitMargin(Number grossProfit, Number sales)

This function is used to compute the gross profit margin.

Parameters

Return value

The return value is a Number.

Example

If the gross profit is 350000.00, the sales value is 450000.00, the return value of the following statement is 0.78.

FRGrossProfitMargin(350000.00, 450000.00)

FRInterestCoverage(number cashFlow, number interestExpenses)

This function computes the interest coverage.

Parameters

Return value

The return value is a Number.

Example

If the cash flow is 250000.00, the interest expenses are 350000.00, the return value of the following statement is 0.71.

FRInterestCoverage(250000.00, 350000.00)

FRInventoryTurnover(Number inventory, Number sales, Number numOfDays)

This function computes the turnover of the inventory.

Parameters

Return value

The return value is a Number.

Example

If the inventory is 165000.00, the sales value is 450000.00, the number of days is 100, the return value of the following statement is 36.67.

FRInventoryTurnover(165000.00, 450000.00, 100)

FRNetProfitMargin(Number netProfit, Number sales)

This function is used to compute the net profit margin.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the sales value is 450000.00, the return value of the following statement is 0.67.

FRNetProfitMargin(300000.00, 450000.00)

FROperatingProfitMargin(Number operatingProfit, Number sales)

This function computes the operating profit margin.

Parameters

Return value

The return value is a Number.

Example

If the operating profit is 380000.00, the sales value is 450000.00, the return value of the following statement is 0.84.

FROperatingProfitMargin(380000.00, 450000.00)

FRPriceEarningsRatio(Number marketPrice, Number earningsPerShare)

This function computes the price earning ratio.

Parameters

Return value

The return value is a Number.

Example

If the market price is 10.87, the earning per share is 12, the return value of the following statement is 0.91.

FRPriceEarningsRatio(10.87, 12)

FRQuickRatio(Number curAssets, Number inventories, Number curLiabilities)

This function computes the quick ratio.

Parameters

Return value

The return value is a Number.

Example

If the current assets are 1800000.00, the inventory is 165000.00, the current liabilities are 150000.00, the return value of the following statement is 10.90.

FRQuickRatio(1800000.00, 165000.00, 150000.00)

FRReturnOnCommonEquity(Number netProfit, Number preferredDividend, Number commonEquity)

This function returns the result of return on common equity.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the preferred dividend is 180000.00, the common equity is 208000.00, the return value of the following statement is 0.58.

FRReturnOnCommonEquity(300000.00, 180000.00, 208000.00)

FRReturnOnEquity(Number netProfit, Number totalEquity)

This function returns the results of return on equity.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the total equity is 215000.00, the return value of the following statement is 1.40.

FRReturnOnEquity(300000.00, 215000.00)

FRReturnOnInvestedCapital(Number netProfit, Number totalBankDebts, Number totalEquity)

This function returns the result of return on invested capital.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the total bank debts are 100000.00, the total equity is 215000.00, the return value of the following statement is 0.95.

FRReturnOnInvestedCapital(300000.00, 100000.00, 215000.00)

FRReturnOnNetFixedAssets(Number netProfit, Number netFixedAssets)

This function returns the result of return on net fixed assets.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the net fixed assets are 400000.00, the return value of the following statement is 0.75.

FRReturnOnNetFixedAssets(300000.00, 400000.00)

FRReturnOnTotalAssets(Number netProfit, Number totalAssets)

This function returns the results of return on total assets.

Parameters

Return value

The return value is a Number.

Example

If the net profit is 300000.00, the total assets are 2200000.00, the return value of the following statement is 0.14.

FRReturnOntotalAssets(300000.00, 2200000.00)

FV(rate, periods, payment, presentMoney, type)

Returns a number specifying the future value of an annuity based on periodic, fixed payments and a fixed interest rate.

Overloads

Parameters

Return value

Number value.

Examples

IPmt(rate, period, periods, presentMoney, futureMoney, type)

IPmt returns a number specifying the interest payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate.

Overloads

Parameters

Return value

Number value.

Examples

IRR(values, guess)

IRR returns a number specifying the internal rate of return for a series of periodic cash flows (payments and receipts).

Overloads

Parameters

Return value

Number value.

Example

Suppose that you can choose one of two offers: $20,000 now or guaranteed payments of $5,000 after 1 year, $10,000 after 2 years and $15,000 after 3 years. Which is the better offer? One way to quantify this is to calculate the internal rate of return. If you take the second offer, you cannot take the first, which is like experiencing an initial payment of $20,000 followed by the receipts:

inArray = ["-20000", "15000", "-10000", "25000"];
IRR(inArray)

Returns 0.201 (rounded to 3 decimals) or 20.1 percent interest. With all other things being equal, if you think that 20.1 percent is a good rate of return, you would prefer the second offer.

Note: The NPV and IRR functions are related since NPV (IRR (values), values) = 0. That is, the internal rate of return of a sequence of cash flows is the interest rate for which that sequence of cash flows has a net present value of 0. There is no direct formula for the IRR function and so JReport calculates the value by iteration. The process depends on the initial guess for the internal rate of return. If the program reports an error, try changing the value of the guess argument to be closer to what you expect the internal rate of return to be.

MIRR(valueArray, financeRate, reinvestRate)

Returns a number specifying the modified internal rate of return for a series of periodic cash flows (payments and receipts).

Parameters

Return value

Number value.

Example

Suppose that you run a business that makes equipment investments, which results in a loss in the first and fourth years. Your expected annual returns are: -$60,000, $60,000, $45,000, -$50,000, $65,000, $40,000. Your losses are financed at 10 percent while you reinvest your earnings in an account at 6 percent. The modified internal rate of return is:

MIRR([-60000, 60000, 45000, -50000, 65000, 40000], 0.10, 0.06) - Returns 0.1929 (rounded to 4 decimals) or 19.29 percent.

NPer(rate, payment, presentMoney, futureMoney, type)

NPer returns a number specifying the number of periods for an annuity based on periodic, fixed payments and a fixed interest rate.

Overloads

Parameters

Return value

Number value.

Examples

NPV(rate, values)

Returns a number specifying the net present value of an investment based on a series of periodic cash flows (payments and receipts) and a discount rate.

Parameters

Return value

Number value.

Example

Suppose that someone offers to pay you $15000 after 1 year, $20000 after 2 years, $25000 after 3 years and $12000 after 4 years. If the discount rate (the Time value of money) is 6.5 percent, the value of this offer to you today is:

NPV(0.065, [15000, 20000, 25000, 12000])

The formula returns 61741.8. So this scheme is worth $61,741.8 to you today. This is less than the sum of the payments, which is $72000, since you have to wait for this money.

Note: The NPV and IRR functions are related since NPV (IRR (values), values) = 0, which means that the internal rate of the return of a sequence of cash flow is the discount rate for which that sequence of cash flow has a net present value of 0.

Pmt(rate, periods, presentMoney, futureMoney, type)

Returns a number specifying the payment for an annuity based on periodic, fixed payments and a fixed interest rate. To find the total amount paid out over the whole loan, multiply the payment per period (the value returned by Pmt) by the total number of periods.

Overloads

Parameters

Return value

Number value.

Examples

PPmt(rate, period, periods, presentMoney, futureMoney, type)

Returns a number specifying the principal payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate.

Overloads

Parameters

Return value

Number value.

Examples

PV(rate, periods, payment, futureMoney, type)

Returns a number specifying the present value of an annuity based on periodic, fixed payments to be paid in the future and at a fixed interest rate.

Overloads

Parameters

Return value

Number value.

Example

Suppose that you want to buy a condo and can make payments of $1100 twice a month (24 annual payments). If the mortgage rates are 6.5 percent, and you want to pay off the condo in 10 years, what is the maximum loan that you can take out?

PV(0.065 / 24, 10 * 24, -1100) - Returns 193936 (rounded to the nearest dollar).

You can therefore afford a loan of about $194,000. Notice that the payment argument is negative since you are paying out the money each month.

Rate(periods, payment, presentMoney, futureMoney, type, guess)

Rate returns a number specifying the interest rate per period for an annuity. The units of the returned value are consistent with the units of periods. For example, if periods is in months, then the rate returned will be a monthly interest rate.

Overloads

Parameters

Return value

Number value.

Examples

Note: There is no direct formula for the Rate function and so Reports calculates the value by iteration. The process depends on the initial guess for the rate. If the program reports an error, try changing the value of the guess argument to be closer to what you expect the interest rate to be.

SLN(cost, salvage, life)

SLN returns a number specifying the straight-line depreciation of an asset for a single period.

Parameters

Return value

Number value.

Example

Suppose a company purchases a fleet of cars for $560,000. The cars have a lifetime of 12 years and a salvage value of $30,000. The depreciation per year is:

SLN(560000, 30000, 12) - Returns 44166.67. Thus the depreciation per year is $44,166.67.

SYD(cost, salvage, life, period)

SYD returns a number specifying the sum-of-years' digits depreciation of an asset for a single period.

Parameters

Return value

Number value.

Examples

Suppose a company purchases a fleet of cars for $560,000. The cars have a lifetime of 12 years and a salvage value of $30,000. They are depreciated as follows: