**Finance Formulas** / May 5, 2018 / Chanel Cleveland

read moreThe cash ratio is most commonly used as a measure of company's liquidity. The metric calculates a company's ability to pay current liabilities using only cash and cash equivalents on...

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

read moreWhen the cross elasticity of demand for product A relative to the change in the price of product B is negative, it means that the quantity demanded of A has...

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

read moreThe current ratio is mainly used to give an idea of a company's ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory,...

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

read moreThe Capital Adequacy Ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. The Capital Adequacy Ratio, also known as...

*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 / Avalynn Orr

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 / Alia Marquez

read moreThe PV, or present value, portion of the loan payment formula uses the original loan amount. The original loan amount is essentially the present value of the future payments on...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

read moreContribution margin is the sales price minus total variable costs, where variable costs might include materials, labor or overhead. For example, Company XYZ sells a product for $100 each. The...

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