**Finance Formulas** / July 27, 2018 / Chanel Cleveland

read moreSo 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...

**Finance Formulas** / August 5, 2018 / Alia Marquez

read moreA down payment is a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment typically represents only a percentage...

**Finance Formulas** / August 5, 2018 / Avalynn Orr

read moreA 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...

**Finance Formulas** / August 5, 2018 / Kenley Hopper

read moreContribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents...

*Finance Formulas* / August 4, 2018 / Alia Marquez

read moreStockholders' equity is the amount of the company that is "owned" by investors. A good way to think of stockholders' equity is the amount of money that stockholders would theoretically...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

read moreCross Price Elasticity of Demand (XED) is the responsiveness of demand for one good to the change in the price of another good. It is the ratio of the percentage...

*Finance Formulas* / August 5, 2018 / Briana Leonard

read moreDFL, therefore, is invaluable in helping a company assess the amount of debt or financial leverage it should opt for in its capital structure. If operating income is relatively stable,...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreThe current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the current total assets...

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