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Discussion Starter #1 (Edited)
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:
Overhead:
total overhead/machine or labor hours

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
-
selling and administrative/ general expenses
---------------------
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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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.
 

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Discussion Starter #3
Will do.
 

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Discussion Starter #4
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?
 

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Discussion Starter #5
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 Added

=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





 
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