# Ratio Analysis Solvency Formula Ratioanalysis Thumbnail Debt Current Quick Calculator High What Long Term Margin Interpretation Equation Acid Test Measures Profitability Ratios

Finance Formulas / July 19, 2018 / Alia Marquez

## Constant Growth Rate Formula

### Return Formula

#### Unit Product Cost Formula

##### Total Debt Formula
###### Confidence Interval Formula

Companies record accounts receivable as assets on their balance sheets since there is a legal obligation for the customer to pay the debt. Furthermore, accounts receivable are current assets, meaning the account balance is due from the debtor in one year or less. If a company has receivables, this means it has made a sale on credit but has yet to collect the money from the purchaser. Essentially, the company has accepted a short-term IOU from its client.

The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are received at a future date. The present value portion of the formula is the initial payout, with an example being the original payout on an amortized loan.

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