**Finance Formulas** / July 20, 2018 / Cecelia Weiss

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,...

**Finance Formulas** / July 16, 2018 / Kenley Hopper

read moreThe higher the DFL, the more volatile earnings per share (EPS) will be. Since interest is a fixed expense, leverage magnifies returns and EPS, which is good when operating income...

**Finance Formulas** / July 17, 2018 / Alia Marquez

read moreCompound interest is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one.The total initial amount of the...

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

read moreEconomic profit is not recorded on a company’s financial statements nor is it required to be disclosed to regulators, investors or financial institutions. Meanwhile, accounting profit is a widely used...

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

read moreEconomic profit is the difference between the revenue a firm earns from sales and the firm’s total opportunity costs. It’s important to distinguish between accounting profit and economic profit. Accounting...

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

read moreThe annuity payment formula shown is for ordinary annuities. This formula assumes that the rate does not change, the payments stay the same, and that the first payment is one...

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

read moreGiven that the debtequity ratio measures a company’s debt relative to the total value of its stock, it is most often used to gauge the extent to which a company...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreAn accounting ratio compares two line items in a company’s financial statements, namely made up of its income statement, balance sheet and cash flow statement. These ratios can be used...

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

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 moreEconomic profit is the difference between the revenue a firm earns from sales and the firm’s total opportunity costs. It’s important to distinguish between accounting profit and economic profit. Accounting...

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