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

read moreThe higher the debt ratio, the more leveraged a company is, implying greater financial risk. At the same time, leverage is an important tool that companies use to grow, and...

**Finance Formulas** / July 15, 2018 / Aniyah Booth

read moreAccounts receivable refers to the outstanding invoices a company has or the money clients owe the company. The phrase refers to accounts a business has a right to receive because...

**Finance Formulas** / July 31, 2018 / Natalia Atkins

read moreBond valuation, in effect, is calculating the present value of a bond’s expected future coupon payments. The theoretical fair value of a bond is calculated by discounting the present value...

**Finance Formulas** / August 5, 2018 / Briana Leonard

read moreEconomic profit is determined by economic principles, not GAAP. Just like accounting profit, costs are deducted from revenues. Economic profit uses implicit costs, not just explicit costs. Implicit costs are...

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

read moreCompound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest,...

**Finance Formulas** / August 4, 2018 / Alia Marquez

read moreAnnual percentage rate (APR) is the annualized interest rate on a loan or investment which doesn’t account for the effect of compounding. It is the annualized form of the periodic...

*Finance Formulas* / August 4, 2018 / Alia Marquez

read moreAccounts receivable, bills to customers that have yet to be paid, are considered current assets as long as they can be expected to be paid within a year. If a...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

read moreThe true benefit of a high return on equity arises when retained earnings are reinvested into the company’s operations. Such reinvestment should, in turn, lead to a high rate of...

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

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 5, 2018 / Kenley Hopper

read moreThe statement of cash flows or the cash flow statement, as it's commonly referred to, is a financial statement that summarizes the amount of cash and cash equivalents entering and...

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