# Knowingpains Financial FormulasKnowingpains Financial Formulas

## Compound Interest FormulaCompound Interest Formula

Finance Formulas / May 20, 2018 / Chanel Cleveland

A current asset is cash and any other company asset that will be turning to cash within one year from the date shown in the heading of the company's balance...

## Continuous Compound Interest FormulaContinuous Compound Interest Formula

Finance Formulas / May 26, 2018 / Chanel Cleveland

The PV, or present value, portion of the loan payment formula uses the original loan amount. The original loan amount is essentially the present value of the future payments on...

## Cost Of Capital FormulaCost Of Capital Formula

Finance Formulas / May 26, 2018 / Avalynn Orr

Economic profit or loss is most useful when comparing multiple outcomes and making a decision between these outcomes. This is especially true for decisions with multiple variables that affect and...

## Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

So how do you know if you’re spending the right amount? You need some numbers. First, you need to know how long the average customer sticks with you before they...

## Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

CPC stands for Cost Per Click and is an important metric for marketers to understand when analyzing the performance of their digital campaigns and arbitraging opportunities. The formula to calculate...

## Coupon Rate FormulaCoupon Rate Formula

Finance Formulas / August 4, 2018 / Alia Marquez

Economic profit is a measurement of opportunity cost. Opportunity cost is the value of the trade-off when a decision is made. For example, an individual may consider returning to school...

### Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

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...

#### Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

A company's yield divided by it amount to of usual excellent shares. If a company earning \$2 million in one year had 2 million common shares of stock outstanding,...

##### Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating...

###### Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

The true benefit of a high return on equity arises when retained earnings are reinvested into the company’s operations. Such reinvestment should, in turn, lead to a high rate of...

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