# 2 Squared Label

## Segment Length FormulaSegment Length Formula

Finance Formulas / August 2, 2018 / Rory Wise

The cash flow statement provides data for ratios dealing with cash. For example, the payout ratio is the percentage of net income paid out to investors. Both dividends and share...

## Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

To force banks to increase capital buffers, and ensure they can withstand financial distress before they become insolvent, Basel III rules would tighten both tier-1 capital and risk-weighted assets (RWAs)....

## Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Average total assets is defined as the average amount of assets recorded on a company's balance sheet at the end of the current year and preceding year. This figure is...

## Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of its total assets. In a sense, the debt ratio shows a company’s ability to...

### Coupon Rate FormulaCoupon Rate Formula

Finance Formulas / August 4, 2018 / Alia Marquez

Contribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents...

#### Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Current assets is a balance sheet account that represents the value of all assets that can reasonably expect to be converted into cash within one year. Current assets include cash...

##### Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

Because of the cost principle (and other accounting principles), assets are generally reported on the balance sheet at cost (or lower) amounts. As a result, it would be incorrect to...

###### Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

Economic profit is the difference between total monetary revenue and total costs, but total costs include both explicit and implicit costs. Economic profit includes the opportunity costs associated with production...

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