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Finance Formulas / May 4, 2018 / Kenzie Kennedy

Current assets are important to businesses because they can be used to fund day-to-day operations and pay ongoing expenses. Depending on the nature of the business, current assets can range...

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Finance Formulas / August 5, 2018 / Alia Marquez

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 4, 2018 / Alia Marquez

Diluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred...

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Finance Formulas / August 4, 2018 / Alia Marquez

Accounting ratios, also known as financial ratios, are used to measure the efficiency and profitability of a company based on its financial reports. They provide a way of expressing the...

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Finance Formulas / August 5, 2018 / Briana Leonard

A ratio under 1 indicates that a company’s liabilities are greater than its assets and suggests that the company in question would be unable to pay off its obligations if...

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Finance Formulas / August 5, 2018 / Alia Marquez

If you have credit cards or bank loans for your home, you pay interest (or a finance charge) on that money at a specific percentage over the course of the...

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Finance Formulas / August 5, 2018 / Avalynn Orr

Contribution margin is used by management when making pricing decisions. This is especially true in special pricing or special order situations where fixed costs are sunk costs and should not...

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Finance Formulas / August 5, 2018 / Kenley Hopper

Economic profit or loss is most useful when comparing multiple outcomes and making a decision between these outcomes. This is especially true for decisions with multiple variables that affect and...

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Contribution Margin Per Unit Formula

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Contribution Margin Per Unit Formula

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