# Acid Test Formula Label

## Liquidity FormulaLiquidity Formula

Finance Formulas / July 31, 2018 / Aniyah Booth

EBITDA margin differs from the operating margin, which excludes depreciation and amortization from the profitability measure. Other variations of a firm's profit margin include gross profit margin, net profit margin...

## Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

You can use the bond yield formula to determine the return you’ll realize by holding a bond to maturity. The required yield, conversely, is the return a bond must offer...

## Coupon Rate FormulaCoupon Rate Formula

Finance Formulas / August 4, 2018 / Alia Marquez

DuPont analysis is a fundamental performance measurement framework popularized by the DuPont Corporation and is also referred to as the "DuPont identity." DuPont analysis is a useful technique used to...

## Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

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...

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

Finance Formulas / August 5, 2018 / Briana Leonard

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the current total assets...

#### Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Compound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the...

##### Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

A 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 pay off its obligations if...

###### Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

The Debt Service Coverage Ratio, usually abbreviated as DSCR or just DCR, is an important concept in real estate finance and commercial lending. It’s critical when underwriting commercial real estate...