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#### Zeus

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Here I'll be adding concepts from accounting, finance, managerial accounting and some Econ.

Econ: only two equations I found to be equitable. Y=mx+b, which is the equation of a line while allow you to plot supply and demand, as well adjust from inflation to deflation.

Revenue-expenses= profit; every 2nd grader in America comprehends this concept.

Price elasticity of demand:
(Q1-Q0)\(Q1+Q0)
--------------------
(P1-P0)\(P1+P0)
q= quantity
p= price

bond yield:
http://www.investopedia.com/terms/b/bond-yield.asp

in a non inflationary economy your lucky to recieve a 3% yield.

Accounting:

Revenue(cost of unit*selling price of the unit)
-cost of goods sold
--------------------
net income

managerial accounting:

liquidity ratios: they tell the financial health of a company.

Liquidity Measurement Ratios: Current Ratio

Contribution margin/contribution margin ratio

Sales
-
cost of goods sold
--------------------
gross margin
-
---------------------
operating income
-taxes
= net income

marketing:
kpi/key performance index:
https://www.optimizesmart.com/understanding-key-performance-indicators-kpis-just-like-that/

prime example is gas gas at a gas station.

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#### Leviticus Cornwall

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I would toss in elasticity measurements for Econ as well as some simple equations on how to deal with interest rates or growth rates. Suggesting for it to be added to the main post for the sake of maintaining consolidation.

#### Zeus

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Will do.

#### Zeus

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I would toss in elasticity measurements for Econ as well as some simple equations on how to deal with interest rates or growth rates. Suggesting for it to be added to the main post for the sake of maintaining consolidation.
Keep the accounting at absorption costing and leave gross out to avoid overstated income?

#### Zeus

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Return on Assets

ROA=asset turnover X profit margin

Return on Equity

ROE=(assets/equity) X asset turnover X profit margin X debt burden

Future Value

FV=(1+r)^t
t=years, r=interest rate

Present Value

PV=1/(1+r)^t

Annuity PV

PV= (1/r) - 1/r(1+r)^t

Annuity FV

FV=[(1+r)^t -1]/r

Effective Annual Rate

EAR=[1 + (APR/m)]^m - 1
m=compounding periods per year

Real Value of CF

Real Value of CF at time t=nominal CF/(1+inflation rate)^t

Real interest rate

Real Interest Rate=[(1+nominal rate)/(1+inflation rate)]-1 ~~nominal rate-inflation rate

=market value of equity-book value of equity

Market-to-Book Ratio

=market value of equity/book value of equity

ROE

ROE=NI/Equity

ROA

ROA=(NI+interest)/total assets

Return on Capital

ROC=(NI+interest)/(Long-term debt+ Equity)

EVA

EVANI-cost of equityXequity

Operating Profit Margin

OPM=(NI+interest)/sales

Asset Turnover

sales/total beginning assets

Inventory Turnover

CoGS/beginning inventory

Long-term Debt Ratio

LT debt/(LT debt +equity)

Times interest earned

EBIT/interest payments

Cash Coverage Ratio

(EBIT+depreciation)/interest payments

Net Working Capital to Total Assets

NWC/Total assets

Current Ratio

current assets/current liabilities

Quick Ratio

(cash+marketable securities+receivables)/current liabilities

Payout Ratio

dividends/earnings

Sustainable Growth

(1-Payback Ratio) x ROE

#### Psychophant

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People go to university to learn this shit..? No wonder business is going out with nepotism.

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