**Finance Formulas** / August 3, 2018 / Kenley Hopper

read moreEconomic 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...

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

read moreWhen you calculate the price of a bond, you are determining the maximum price you would want to pay for the bond, based on how its coupon rate compares to...

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

read moreContribution margin is a productâ€™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 5, 2018 / Alia Marquez

read moreThe total asset turnover ratio calculates net sales as a percentage of assets to show how many sales are generated from each dollar of company assets. For instance, a ratio...

*Finance Formulas* / August 5, 2018 / Aniyah Booth

read moreEBITDA margin is an assessment of a firm's operating profitability as a percentage of its total revenue. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided...

__Finance Formulas__ / August 5, 2018 / Kenley Hopper

read moreAccounting profit uses realized or actual gains and losses and is calculated according to generally accepted accounting principles (GAAP). It is a company's total revenue reduced by the explicit costs...

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

read moreWhat does the debt service coverage ratio mean? A DSCR greater than 1.0 means there is sufficient cash flow to cover debt service. A DSCR below 1.0 indicates there is...

__Finance Formulas__ / August 5, 2018 / Avalynn Orr

read moreCompound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest,...

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