**Finance Formulas** / April 27, 2018 / Chanel Cleveland

read moreInventory is included as current assets, but this item should be taken with a grain of salt. Different accounting methods can be used to inflate inventory, and in any case...

**Finance Formulas** / January 6, 2018 / Alia Marquez

read moreThe asset turnover ratio is an efficiency ratio that measures a company’s ability to generate sales from its assets by comparing net sales with average total assets. In other words,...

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

read moreA down payment is a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment typically represents only a percentage...

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

read moreConversely, firms in sectors, such as utilities and telecommunications, which have large asset bases will have lower asset turnover. Since this ratio can vary widely from one industry to the...

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

read moreFor example, an investor starts her own business with $100,000 and earns $120,000 in profits during the first year. Her accounting profit is $20,000. But that same year, she could...

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

read moreStockholders' equity is often referred to as the book value of the company, and it comes from two main sources. The first source is the money originally and subsequently invested...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreEBITDA 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...

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

read moreThe total asset turnover ratio calculates net sales as a percentage of assets to show how many sales are generated from each dollar of company assets. For instance, a ratio...

__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;...

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