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$\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$ The basic equation that represents the relationship between assets, liabilities, and owner's equity.

$\text{Net Income} = \text{Revenues} - \text{Expenses}$ Calculates the profitability of a company after all expenses have been deducted from revenues.

$\text{Break-even Point} = \frac{\text{Fixed Costs}}{\text{Price} - \text{Variable Cost per Unit}}$ Indicates the number of units that must be sold to cover all fixed and variable costs.

$\text{ROI} = \left( \frac{\text{Net Profit}}{\text{Investment Cost}} \right) \times 100$ Measures the efficiency of an investment or compares the efficiency of several investments.

$\text{Debt-to-Equity Ratio} = \frac{\text{Total Liabilities}}{\text{Total Shareholder's Equity}}$ A measure of a company's financial leverage, indicating the relative proportion of shareholders' equity and debt used to finance assets.

$\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}$ Measures a company's ability to pay off its short-term liabilities with its short-term assets.

$\text{Quick Ratio} = \frac{\text{Current Assets} - \text{Inventory}}{\text{Current Liabilities}}$ A measure of a company's immediate short-term liquidity, excluding inventory.

$\text{Gross Profit Margin} = \left( \frac{\text{Gross Profit}}{\text{Revenue}} \right) \times 100$ Measures the financial health of a company by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).

$\text{Operating Margin} = \left( \frac{\text{Operating Income}}{\text{Revenue}} \right) \times 100$ Shows the percentage of profit a company makes on its sales before interest and taxes.

$\text{Net Profit Margin} = \left( \frac{\text{Net Income}}{\text{Revenue}} \right) \times 100$ Represents the percentage of revenue that translates into profit after all expenses.

$\text{ROE} = \left( \frac{\text{Net Income}}{\text{Shareholder's Equity}} \right) \times 100$ A measure of the profitability of a business in relation to the equity.

$\text{Inventory Turnover Ratio} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}$ Calculates how quickly a company sells through its inventory.

$\text{Accounts Receivable Turnover} = \frac{\text{Net Credit Sales}}{\text{Average Accounts Receivable}}$ Measures how many times a company can turn its accounts receivable into cash within a period.

$\text{EPS} = \frac{\text{Net Income} - \text{Preferred Dividends}}{\text{Weighted Average Number of Common Shares Outstanding}}$ Indicates how much money a company makes for each share of its stock.