**Finance Formulas** / July 27, 2018 / Luz Tyson

read moreContribution margin is used by management when making pricing decisions. This is especially true in special pricing or special order situations where fixed costs are sunk costs and should not...

**Finance Formulas** / July 14, 2018 / Heaven Estes

read moreAccounting ratios, also known as financial ratios, are used to measure the efficiency and profitability of a company based on its financial reports. They provide a way of expressing the...

**Finance Formulas** / July 21, 2018 / Rory Wise

read moreIt's important to note that the CFS is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that...

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

read moreInventory is included as current assets, but this item should be taken with a grain of salt. Different accounting methods can be used to inflate inventory, and in any case...

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

read moreMeanwhile, upset that he is only earning $40 per year, the original investor decides to sell, but to entice others to buy his bond instead of bonds directly from ABC...

**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 moreThe contribution margin is an integral aspect when calculating the break-even point of sales or a target level of sales. The contribution margin determines the portion of each sale that...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreCross Price Elasticity of Demand (XED) is the responsiveness of demand for one good to the change in the price of another good. It is the ratio of the percentage...

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

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__ / August 5, 2018 / Aniyah Booth

read moreGenerally speaking, the higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per dollar of assets. The...

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