business formulas

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9 Terms

1
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Percent Change

New-old/old x 100

2
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Accounting equation

Asset = liability + owners equity

3
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Profit

Revenue - costs

4
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Profit margin

Net income/sales

5
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Current ratio/working capital

Current assets - current liabilities

6
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Debt to owners equity ratio

Total liabilities/owners equity

7
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Earnings per share

Net income/outstanding shares

8
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Return on equity

Net income/total equity

9
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Net income

Revenue - COGS - expenses - taxes = net income