**Finance Formulas** / July 26, 2018 / Cecelia Weiss

read moreContribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents...

**Finance Formulas** / July 22, 2018 / Aniyah Booth

read moreEconomic profit is determined by economic principles, not GAAP. Just like accounting profit, costs are deducted from revenues. Economic profit uses implicit costs, not just explicit costs. Implicit costs are...

**Finance Formulas** / July 28, 2018 / Luz Tyson

read moreStockholders' equity, also referred to as shareholders' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's...

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

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 / Avalynn Orr

read moreDiscounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analyses use future free cash flow projections and discounts them, using a...

**Finance Formulas** / August 5, 2018 / Briana Leonard

read moreSo how do you know if you’re spending the right amount? You need some numbers. First, you need to know how long the average customer sticks with you before they...

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

read moreA debt ratio of .5 is often considered to be less risky. This means that the company has twice as many assets as liabilities. Or said a different way, this...

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

read moreThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. It is often used as a capital budgeting threshold for required...

__Finance Formulas__ / August 5, 2018 / Alia Marquez

read moreAccording to DuPont analysis, there are three major financial metrics drive return on equity (ROE): operating efficiency, asset use efficiency and financial leverage. Operating efficiency is represented by net profit...

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