**Finance Formulas** / July 29, 2018 / Avalynn Orr

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 operating income is relatively stable,...

**Finance Formulas** / August 5, 2018 / Kenley Hopper

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 investors. Both dividends and share...

**Finance Formulas** / August 5, 2018 / Aniyah Booth

read moreFor example, if a company had $150,000 in revenues and $50,000 in explicit costs, its accounting profit would be $100,000. The same company also had $25,000 in implicit, or opportunity...

**Finance Formulas** / August 5, 2018 / Alia Marquez

read moreAccounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Said another way, account receivable...

*Finance Formulas* / August 5, 2018 / Alia Marquez

read moreThe cash ratio is the ratio of a company's total cash and cash equivalents (CCE) to its current liabilities. The metric calculates a company's ability to repay its short-term debt;...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreAn individual starts a business and incurs startup costs of $50,000. During the first year of operation, the business earns a profit of $75,000. If the individual had stayed at...

*Finance Formulas* / August 5, 2018 / Avalynn Orr

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 to cover fixed and variable...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreThe higher the DFL, the more volatile earnings per share (EPS) will be. Since interest is a fixed expense, leverage magnifies returns and EPS, which is good when operating income...

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