Accounting Formulas

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Assets = Liabilities + Equity
Current Assets = Cash + Accounts Receivable + Inventory + Prepaid Expenses
Net Fixed Assets = Fixed Assets at cost - Accumulated Depreciation
Total Assets = Current Assets + Other Assets + Net Fixed Assets
Current Liabilities = Accounts Payable + Accrued Expenses + Current Portion of Debt + Income Taxes Payable
Shareholders Equity = Capital Stock + Retained Earnings
Total Liabilities and Equity = Current Liabilities + Long-Term Debt + Shareholders Equity
Gross Margin = Net Sales - Cost of Goods Sold Formula
Operating Expenses = Sales & Marketing + Research and Development + General & Administrative
Income From Operations = Gross Margin - Operating Expenses
Net Income = Income From Operations + Interest Income - Income Taxes
Current Ratio = Current Assets/Current Liabilities
Cash Ratio = Cash/Current Liabilities
Quick Ratio = (Cash + Accounts Receivable)/Current Liabilities
Asset Turn Ratio = Net Sales/Total Assets
Receivable Days = 365(Accounts Receivable)/Net Sales
Inventory Turn = Cost of Goods/Inventory
Return on Assets (ROA) = Net Income/Total Assets
Return on Investment (ROI) = Net Income/Shareholders Equity
Return on Sales (ROS) = Net Income/Net Sales
Gross Margin = (Net Sales - Cost of Goods)/Net Sales
Debt-to-Equity Ratio (DTE) = (Current Debt + Long-Term Debt)/Shareholders Equity
Debt Ratio = (Current Debt + Long-Term Debt)/Total Assets
Break-even point = sales - fixed costs - variable costs

For more math formulas, check out our Formula Dossier

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