**Finance Formulas** / June 25, 2018 / Rory Wise

read moreWhen you make a down payment on a purchase and use a loan to pay for the remainder, you instantly reduce the amount of interest you pay over the lifetime...

**Finance Formulas** / August 2, 2018 / Rory Wise

read moreInstead of calculating interest on a finite number of periods, such as yearly or monthly, continuous compounding calculates interest assuming constant compounding over an infinite number of periods. Even with...

**Finance Formulas** / June 23, 2018 / Heaven Estes

read moreDown payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such as a car and a...

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

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 / Alia Marquez

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 moreThe purpose of the break-even analysis formula is to calculate the amount of sales that equates revenues to expenses and the amount of excess revenues, also known as profits, after...

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

read moreCompanies fund their capital purchases with equity and borrowed capital. The equity capitalstockholders' equity can also be viewed as a company's net assets (total assets minus total liabilities). Investors...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreWhen investors buy bonds, they essentially lend bond issuers money. In return, bond issuers agree to pay investors interest on bonds throughout their lifetime and to repay the face value...

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

read moreCurrent assets are generally listed first on a company's balance sheet and will be presented in the order of liquidity. That means they will appear in the following order: cash...

__Finance Formulas__ / August 4, 2018 / Alia Marquez

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...

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