Ways to Interpret Accounting Ratios. Ratio analysis is a time-tested method for evaluating business productivity. Ratios are crucial to a small-business owner both in comparing current to past ...

This makes our list of important accounting formulas because once you understand it, you can see at a glance how healthy your business is. For example, let’s say the balance of your bank ...

A balance sheet includes a summary of a business’s assets, liabilities, and capital. Learn what a balance sheet should include and how to create your own.

Accounting Rules for Capitalizing Assets. The cost of an asset with a useful life greater than one year can be spread over a period of time using depreciation. The asset will show up on the ...

Thanks -- and Fool on! The article How to Calculate Profitability Ratios for Banks originally appeared on Fool.com. The Motley Fool owns shares of and recommends Wells Fargo.