**Finance Formulas** / July 26, 2018 / Kenley Hopper

read moreA lower debt ratio usually implies a more stable business with the potential of longevity because a company with lower ratio also has lower overall...

**Finance Formulas** / July 26, 2018 / Luz Tyson

read moreDFL, therefore, is invaluable in helping a company assess the amount of debt or financial leverage it should opt for in its capital structure. If...

*Finance Formulas* / July 26, 2018 / Heaven Estes

read moreAsset turnover ratio is typically calculated over an annual basis using either the fiscal or calendar year. The total assets number used in the denominator...

__Finance Formulas__ / July 26, 2018 / Tatiana Douglas

read moreA ratio under 1 indicates that a company’s liabilities are greater than its assets and suggests that the company in question would be unable to...

*Finance Formulas* / July 26, 2018 / Cecelia Weiss

read moreThe term "profit" may bring images of money to mind, but to economists, profit encompasses more than just cash. In general, profit is the difference...

__Finance Formulas__ / July 26, 2018 / Heaven Estes

read moreEconomic profit is not recorded on a company’s financial statements nor is it required to be disclosed to regulators, investors or financial institutions. Meanwhile, accounting...

**Finance Formulas** / July 26, 2018 / Cecelia Weiss

read moreAnnual Percentage rate (APR) explains the cost of borrowing with a variety of loans, including credit cards and mortgage loans. Costs are quoted as a...

**Finance Formulas** / July 26, 2018 / Avalynn Orr

read moreThe annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are received...

**Finance Formulas** / July 26, 2018 / Tatiana Douglas

read moreThe cash flow statement provides data for ratios dealing with cash. For example, the payout ratio is the percentage of net income paid out to...

**Finance Formulas** / July 25, 2018 / Iliana Williamson

read moreBreak-even point analysis is a measurement system that calculates the margin of safety by comparing the amount of revenues or units that must be sold...