# Break Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. Customer lifetime value is an important concept in that it encourages firms to shift their focus from quarterly profits to the long-term health of their customer relationships. Customer lifetime value is an important number because it represents an upper limit on spending to acquire new customers. For this reason it is an important element in calculating payback of advertising spent in marketing mix modeling.

### Profitability Formula

#### Double Declining Formula

##### Constant Growth Rate Formula

###### Accumulated Depreciation Formula

The accounting equation is sometimes referred to as the "basic accounting equation" or balance sheet equation could also be written as Shareholders' Equity = Assets – Liabilities, where the statement is rearranged to reflect the residual claim of equity owners. Alternatively, one can rearrange the accounting statement and the results of the equation will still hold if done properly.

Generally speaking, the higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per dollar of assets. The asset turnover ratio tends to be higher for companies in certain sectors than in others. Retail and consumer staples, for example, have relatively small asset bases but have high sales volume and, thus, often yield the highest asset turnover ratio.

A ratio under 1 indicates that a company’s liabilities are greater than its assets and suggests that the company in question would be unable to pay off its obligations if they came due at that point. While a current ratio below 1 shows that the company is not in good financial health, it does not necessarily mean that it will go bankrupt.

### Gallery Of Break Even Point Formula

### Rate This Break Even Point Formula

67 out of 100 based on 396 user ratings

In Case You Missed It

## Labor Efficiency Variance Formula

## Lifo Formula

### Return On Invested Capital Formula

#### Accumulated Depreciation Formula

##### Total Stockholders Equity Formula

###### Capm Formula

##### Leave Your Reply on Break Even Point Formula

Continue Reading Below

## Double Declining Formula

## Capm Formula

### Principal Interest Formula

#### Unit Product Cost Formula

##### Accumulated Depreciation Formula

###### Total Debt Formula