Other financial metrics related to the Contribution Margin Ratio include the gross margin ratio, operating margin ratio, and net profit margin ratio. These ratios provide insight into the overall profitability of a business from different perspectives. This is the net amount that the company expects to receive from its total sales. Would you prefer to…
Working capital is the amount of money a company has available for daily operations. It is calculated by subtracting current liabilities from current assets, both of which are found on the balance sheet. It is calculated by dividing revenue over a period of time by the average value of assets for that same period. Income…
By now you’d feel more confident in preparing journal entries. Feel free to refer back to the examples above should you encounter similar transactions. I know how difficult it can be to memorize how each business transaction is recorded. That’s why I’ve made this extensive list of journal entry examples. Each example deals with a…
How to calculate debt-to-equity ratio in Excel Calculation of Debt To Equity Ratio: Example 3 What is Debt Ratio? For example, asset-heavy industries such as utilities and transportation tend to have higher D/E ratios because their business models require more debt to finance their large capital expenditures. For shareholders, it means a decreased probability of…