## Car Loan Payment FormulaCar Loan Payment Formula

Finance Formulas / June 21, 2018 / Tatiana Douglas

Cash flow is calculated by making certain adjustments to net income by adding or subtracting differences in revenue, expenses and credit transactions (appearing on the balance sheet and income statement)...

## Retail Markup FormulaRetail Markup Formula

Finance Formulas / August 5, 2018 / Aniyah Booth

Because of the cost principle (and other accounting principles), assets are generally reported on the balance sheet at cost (or lower) amounts. As a result, it would be incorrect to...

## Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

A 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...

## Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

Accounting profit is the difference between total monetary revenue and total monetary costs, and is computed by using generally accepted accounting principles (GAAP). Put another way, accounting profit is the...

### Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

The true benefit of a high return on equity arises when retained earnings are reinvested into the company’s operations. Such reinvestment should, in turn, lead to a high rate of...

#### Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

Consider 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...

##### Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

There are many variations when it comes to what you can use for your cash flows and discount rate in a DCF analysis. For example, free cash flows can be...

###### Contribution Margin Per Unit FormulaContribution Margin Per Unit Formula

Finance Formulas / August 5, 2018 / Briana Leonard

An economic profit or loss is the difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. In calculating economic profit,...