**Finance Formulas** / August 1, 2018 / Chanel Cleveland

read moreThe 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

read moreFor 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

read moreDown 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

read moreAccording 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

read moreIt 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

read moreDiscounted 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

read moreInstead 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

read moreContribution 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

read moreOtherwise, 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

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