**Finance Formulas** / February 28, 2018 / Cecelia Weiss

read morelifetime value of a customer and the cost of acquiring that customer. This is a particularly crucial measure for subscription based companies.

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

read moreThe accounting equation, also known as the balance sheet equation, is written as Assets = Liabilities + Equity and underpins the balance sheet's foundation. The accounting equation is the foundation...

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

read moreThe statement of cash flows or the cash flow statement, as it's commonly referred to, is a financial statement that summarizes the amount of cash and cash equivalents entering and...

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

read moreIn other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed...

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

read moreConsider the following example to illustrate the concept. Assume hypothetical company BigBox has operating income or earnings before interest and taxes (EBIT) of $100 million in Year 1, with interest...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreThe loan payment formula is used to calculate the payments on a loan. The formula used to calculate loan payments is exactly the same as the formula used to calculate...

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

read moreIf a corporation has issued only one type, or class, of stock it will be common stock. ("Preferred stock" is discussed later.) While "common" sounds rather ordinary, it is the...

__Finance Formulas__ / August 5, 2018 / Aniyah Booth

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 number of periods. Even with...

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