# Profitability Ratios Examples Label

## Average Total Assets FormulaAverage Total Assets Formula

Finance Formulas / April 8, 2018 / Alyvia French

An immediate payment annuity is an annuity contract that is purchased with a single payment and pays a guaranteed income that starts almost immediately. Also called a "single-premium immediate annuity...

## Solvency Ratio FormulaSolvency Ratio Formula

Finance Formulas / August 4, 2018 / Alia Marquez

EBITDA margin differs from the operating margin, which excludes depreciation and amortization from the profitability measure. Other variations of a firm's profit margin include gross profit margin, net profit margin...

## Profitability FormulaProfitability Formula

Finance Formulas / July 25, 2018 / Tatiana Douglas

In 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...

## Amortization Payment FormulaAmortization Payment Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

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...

## Retail Markup FormulaRetail Markup Formula

Finance Formulas / August 5, 2018 / Aniyah Booth

You can use the bond price formula to determine the value of a bond. While it involves some number crunching, it’s a fairly straightforward process because future cash flows to...

## Annual Growth Rate FormulaAnnual Growth Rate Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Annual Percentage rate (APR) explains the cost of borrowing with a variety of loans, including credit cards and mortgage loans. Costs are quoted as a percentage. For example, if your...

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

Finance Formulas / August 5, 2018 / Briana Leonard

Continuous compounding is the mathematical limit that compound interest can reach if it's calculated and reinvested into an account's balance over a theoretically infinite number of periods. While this is...

#### Inventory Cost FormulaInventory Cost Formula

Finance Formulas / August 5, 2018 / Alia Marquez

Accounts receivable refers to the outstanding invoices a company has or the money clients owe the company. The phrase refers to accounts a business has a right to receive because...

##### Income Approach FormulaIncome Approach Formula

Finance Formulas / August 5, 2018 / Kenley Hopper

The cost of equity can be a bit tricky to calculate as share capital carries no "explicit" cost. Unlike debt, which the company must pay in the form of predetermined...

###### Break Even Point FormulaBreak Even Point Formula

Finance Formulas / August 5, 2018 / Avalynn Orr

Inventory 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...