Chapter 21 · Master formula sheet
Formula sheet — by sector
Banking, microfinance, hydropower, hotels, investment companies and both insurance types.
27 of 30 · 8 min
Banking and microfinance
| Metric | Formula | Direction |
|---|---|---|
| NPL ratio | NPL ÷ Total loans × 100 | Lower better |
| Provision coverage | Provisions ÷ Gross NPL × 100 | Higher safer |
| NIM | Net interest income ÷ Avg earning assets × 100 | Higher better |
| Cost-to-income | Opex ÷ Operating income × 100 | Lower better |
| CAR | Capital ÷ Risk-weighted assets × 100 | Above regulatory minimum |
| CD ratio | Credit ÷ Deposits (NRB definition) | Headroom matters |
| Opex ÷ portfolio | Operating expense ÷ Avg loan portfolio | Lower better (MFI) |
Hydropower and hotels
| Metric | Formula | Direction |
|---|---|---|
| CUF | Actual generation ÷ Max possible × 100 | Against design estimate |
| Revenue per MW | Revenue ÷ Installed MW | Higher better |
| Cost per MW | Project cost ÷ Installed MW | Lower better |
| Debt per MW | Project debt ÷ Installed MW | Lower safer |
| DSCR | Cash available for debt service ÷ Debt service | Above 1.0 required |
| Occupancy | Occupied ÷ Available rooms × 100 | Higher better |
| ADR | Room revenue ÷ Rooms sold | Higher better |
| RevPAR | ADR × Occupancy | Higher better |
Investment companies and insurance
| Metric | Formula | Direction |
|---|---|---|
| NAV per share | (Assets − Liabilities) ÷ Shares | — |
| Premium / discount | (Price − NAV/sh) ÷ NAV/sh × 100 | Discount common |
| Loss ratio | Incurred claims ÷ Earned premium × 100 | Lower better |
| Expense ratio | Underwriting expenses ÷ Earned premium × 100 | Lower better |
| Combined ratio | Loss ratio + Expense ratio | Below 100% = underwriting profit |
| Solvency ratio | Available ÷ Required solvency margin | Above regulatory minimum |
| Persistency | Policies still in force ÷ Policies written × 100 | Higher better |
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