Finance Formulas / February 28, 2018 / Cecelia Weiss
This ratio measures the financial leverage of a company. Companies with higher levels of liabilities compared with assets are considered highly leveraged and more risky for lenders.
Finance Formulas / August 5, 2018 / Kenley Hopper
A debt ratio of .5 is often considered to be less risky. This means that the company has twice as many assets as liabilities. Or said a different way, this...
Finance Formulas / August 5, 2018 / Alia Marquez
Down payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such as a car and a...
Finance Formulas / August 5, 2018 / Aniyah Booth
A depreciation rate is the percentage of a long-term investment that you use as an annual tax deductible expense during the period over which you claim it as a tax...
Finance Formulas / August 5, 2018 / Avalynn Orr
Economic 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 profit is a widely used...
Finance Formulas / August 5, 2018 / Briana Leonard
If you have credit cards or bank loans for your home, you pay interest (or a finance charge) on that money at a specific percentage over the course of the...
Finance Formulas / August 4, 2018 / Alia Marquez
Given that the debtequity ratio measures a company’s debt relative to the total value of its stock, it is most often used to gauge the extent to which a company...