**Finance Formulas** / May 10, 2018 / Tatiana Douglas

read morePresent value is the discounted sum of future cash flows each future cash flow is multiplied by a carefully selected number less than one, before being added together. The multiplication...

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

read moreContribution margin is a cost accounting concept that lets a company determine the profitability of its individual products. The phrase contribution margin can also refer to a per unit measure...

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

read moreThe annuity payment formula shown is for ordinary annuities. This formula assumes that the rate does not change, the payments stay the same, and that the first payment is one...

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

read moreIf you have credit cards or bank loans for your home, you pay interest (or a finance charge) on that money at a specific percentage over the course of the...

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

read moreEarnings per share, the value of earnings per share of outstanding common stock, is a very important measure to assess a company's financial health. When reporting financial results, revenue and...

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

read moreTheir simplicity makes them a popular option; no need to attempt to time the market or worry about distribution timing. Also, immediate payment annuities, as opposed to front-loaded annuities, can...

__Finance Formulas__ / August 5, 2018 / Aniyah Booth

read moreDFL, therefore, is invaluable in helping a company assess the amount of debt or financial leverage it should opt for in its capital structure. If operating income is relatively stable,...

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

read moreThe DebtEquity (DE) ratio can be applied to personal financial statements as well, in which case it is also known as the Personal DebtEquity Ratio. Here, "equity" refers not to...

__Finance Formulas__ / August 5, 2018 / Briana Leonard

read moreAccounting 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...

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