**Finance Formulas** / July 17, 2018 / Cecelia Weiss

read moreThe accounting equation, also known as the balance sheet equation, is written as Assets = Liabilities + Equity and underpins the balance sheet's foundation. The accounting equation is the foundation...

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

read moreThe 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...

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

read moreThe term "profit" may bring images of money to mind, but to economists, profit encompasses more than just cash. In general, profit is the difference between costs and revenue, but...

**Finance Formulas** / August 4, 2018 / Aniyah Booth

read moreThe purpose of the break-even analysis formula is to calculate the amount of sales that equates revenues to expenses and the amount of excess revenues, also known as profits, after...

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

read moreConsider the following example to illustrate the concept. Assume hypothetical company BigBox has operating income or earnings before interest and taxes (EBIT) of $100 million in Year 1, with interest...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreThe annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are received at a future date. The...

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

read moreBecause 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...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreThe annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are received at a future date. The...

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