**Finance Formulas** / April 16, 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** / July 15, 2018 / Aniyah Booth

read moreThe PV, or present value, portion of the loan payment formula uses the original loan amount. The original loan amount is essentially the present value of the future payments on...

**Finance Formulas** / July 15, 2018 / Kenley Hopper

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 / Briana Leonard

read moreEBITDA is a non-GAAP financial figure that measures a company's profitability before deductions that are considered somewhat superfluous to the business decision-making process. These deductions are interest, taxes, depreciation and...

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

read moreSince bonds are an essential part of the capital markets, investors and analysts seek to understand how the different features of a bond interact in order to determine its intrinsic...

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

read moreEconomic profit or loss is most useful when comparing multiple outcomes and making a decision between these outcomes. This is especially true for decisions with multiple variables that affect and...

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

read moreTotal debt to total assets is a measure of the company's assets that are financed by debt, rather than equity. This leverage ratio shows how a company has grown and...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

read moreThe debt-to-equity ratio (DE) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is...

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

read moreContribution margin is the sales price minus total variable costs, where variable costs might include materials, labor or overhead. For example, Company XYZ sells a product for $100 each. The...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

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...

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