Finance Formulas / August 1, 2018 / Chanel Cleveland

Loss Ratio FormulaLoss Ratio Formula

The debt to total assets ratio is calculated by dividing a corporation's total liabilities by its total assets. Let's assume that a corporation has \$100...

Finance Formulas / August 1, 2018 / Aniyah Booth

Eoq FormulaEoq Formula

For example, an investor starts her own business with \$100,000 and earns \$120,000 in profits during the first year. Her accounting profit is \$20,000. But...

Finance Formulas / August 1, 2018 / Alia Marquez

Down payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such...

Finance Formulas / August 1, 2018 / Alia Marquez

Gross Profit Calculation FormulaGross Profit Calculation Formula

According to DuPont analysis, there are three major financial metrics drive return on equity (ROE): operating efficiency, asset use efficiency and financial leverage. Operating efficiency...

Finance Formulas / August 1, 2018 / Cecelia Weiss

Net Profit Margin FormulaNet Profit Margin Formula

It is important to keep the rate per period and number of periods consistent with one another in the formula. If the loan payments are...

Finance Formulas / July 31, 2018 / Briana Leonard

Markup Price FormulaMarkup Price Formula

Discounted cash flow models are powerful, but they do have shortcomings. DCF is merely a mechanical valuation tool, which makes it subject to the axiom...

Finance Formulas / July 31, 2018 / Cecelia Weiss

Average Cost Method FormulaAverage Cost Method Formula

Instead of calculating interest on a finite number of periods, such as yearly or monthly, continuous compounding calculates interest assuming constant compounding over an infinite...

Finance Formulas / July 31, 2018 / Luz Tyson

Effective Yield FormulaEffective Yield Formula

Contribution margin is a cost accounting concept that lets a company determine the profitability of its individual products. The phrase contribution margin can also refer...

Finance Formulas / July 31, 2018 / Aniyah Booth

Liquidity FormulaLiquidity Formula

Otherwise, an annuity that changes the payment andor rate would need to be adjusted for each change. An annuity that has its first payment due...

Finance Formulas / July 31, 2018 / Chanel Cleveland

Profit Maximizing Output FormulaProfit Maximizing Output Formula

Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This metric enables comparisons of leverage...