## Definition of Return on Assets (ROA) Ratio Definition: What is Return on Assets (ROA) Ratio? Return on Assets ratio also called return on total assets. It is the profitability ratio that compares the net income to average total assets to measure the net income produced by total assets during a period. In other words, this ratio is used to find the efficiency […]

## Days Sales Outstanding Formula | DSO Formula Days Sales Outstanding Formula DSO Formula can be calculated by dividing the account receivable by the net credit sales and multiply it by the number of days in the period. Often this formula is used at the end of the year due to which number of days 365 and in the equation form it can […]

## Debt Service Coverage Ratio Formula (DSCR) Debt Service Coverage Ratio Formula (DSCR) is calculated by dividing the net operating income by the total debt service cost. Debt Service Coverage Ratio = Operating Income/Total debt service cost Operating Income is the income which leftover after the payment of all the operating expenses. Operating income is also called EBIT. On the income statement, […]

## Present Value (PV) Formula | Example | Calculator | Analysis What is Present Value? Definition: Present value also known as discounted value. It is the financial formula which calculates the worth of received amount on a future that in today’s dollars. On the base of the time value of money principle this concept work. It dictates that the worth of today’s 1 dollar is more […]

## Preferred Dividend Coverage Ratio | Formula | Example | Calculation Preferred Dividend Coverage ratio is used to calculate the ability of the company to pay the dividend to its preferred shareholders on the base of the net income of the company. In other words, this ratio is used by the investors to find the efficiency of the company by comparing profit to the preferred dividend. […]