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Calculate Ratio Label

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Finance Formulas / February 9, 2018 / Kenzie Kennedy

The accounting equation is sometimes referred to as the "basic accounting equation" or balance sheet equation could also be written as Shareholders' Equity = Assets – Liabilities, where the statement...

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Current Ratio FormulaCurrent Ratio Formula

Finance Formulas / June 21, 2018 / Cecelia Weiss

This ratio measures the financial leverage of a company. Companies with higher levels of liabilities compared with assets are considered highly leveraged and more risky for lenders....

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Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

The annuity payment formula shown is for ordinary annuities. This formula assumes that the rate does not change, the payments stay the same, and that the first payment is one...

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Finance Formulas / August 5, 2018 / Alia Marquez

Accounts 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...

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Finance Formulas / August 5, 2018 / Kenley Hopper

Economic profit includes the opportunity costs a company loses or gains by making a decision to pursue one avenue towards revenue, thus passing by a different opportunity which also might...

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Finance Formulas / August 5, 2018 / Aniyah Booth

Break-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...

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Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

Assets include anything a company owns that has monetary value, even if it can't be readily sold. They are split into two classes current assets, which refers to assets that...

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Finance Formulas / August 5, 2018 / Kenley Hopper

Bonds form a significant portion of the financial market and are a key source of capital for the corporate world. Therefore every corporate finance course in the MBA program will...

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Finance Formulas / August 5, 2018 / Alia Marquez

Spreading the cost over multiple accounting periods helps provide a clearer picture of how your expenditures compare with your earnings. It also ensures that your accounting complies with federal rules...

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Beginning Inventory Formula

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