Yield to Maturity Formula

The yield to maturity formula, also known as book yield or redemption yield, is used in finance to calculate the yield of a bond at the current market price. It is calculated to compare the attractiveness of investing in a bond with other investment opportunities. YTM (Yield to Maturity) is the Read More about Yield to Maturity Formula

Debt Ratio Formula

Debt ratio is a financial ratio representing the ratio of external financing (total liabilities and provisions) to total assets and is used in the analysis of the capital structure. It determines the extent to which the company is funded by external financing and to which by its own capital. This Read More about Debt Ratio Formula

Current Ratio Formula

The current ratio is one of the liquidity ratios which measures a company’s ability to pay its short term liabilities with its assets. This is a good way to measure overall liquidity as short-term liabilities are due within the next year, giving the company only a short amount of time to raise Read More about Current Ratio Formula

Quick Ratio Formula

Quick ratio or acid test ratio is one of the liquidity ratios which measures a company’s ability to pay its short-term, current liabilities with its most liquid (or quick) assets. Quick assets are current assets which can be converted to cash quickly (within 90 days). Examples of quick assets Read More about Quick Ratio Formula

Annuity Payment Formula

The annuity payment formula is used to calculate the regular payment on an annuity - a series of payments received at a future date. This is the exact same formula used in loan payments. Where P = the payment, PV = the present value, r = the rate per loan period, and n = the number of Read More about Annuity Payment Formula