Loan to Deposit Ratio

Why Loan to Deposit Ratio is so Important for The Approval of a Loan

Loan to Deposit Ratio = Loans ÷ Deposits Loan to deposit ratio is utilized to determine the capability of lenders or banking institutions to cover the withdrawing amounts by customers. The values used in the formula are exactly the same as the name tells i.e. loan and deposit. Any lending…

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Growing Annuity Payment

How Growing Annuity Payment (future value) Helps to Calculate Precise Profitability

Initial payment of growing annuity = FV [(r – g) ÷ { (1 + r)n – (1 + g)n } ] FV = future value r = rate g = growth rate n = # of periods Growing annuity payment with future value formula is utilized to determine the first…

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FV of Annuity

FV of Annuity w/t Continuous Compounding Calculates the Total Returns From a Projects

FV of Annuity – Continuous Compounding = Cash flow × [{ert – 1} ÷ {er – 1}] r = rate t = time Future value of an annuity with continuous compounding formula helps an analyst to determine the ending balance of an annuity which is compounded continuously. To understand the…

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Get Precise Profitability Values by Using Future Value with Continuous Compounding

Future value with continuous compounding = PV × ert PV = Present value r = rate t = time e = mathematical constant Future value with continuous compounding helps to determine the future value of money at the present time. FV with continuous compounding inherit some underlying concepts behind the…

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Can We Use Future Value of Growing Annuity to Opt For a Viable Project

Future value of growing annuity = P [{ (1 + r)n – (1 + g)n } ÷ (r – g) ] P = first payment r = rate g = rate n = # of periods Future value of the growing annuity is utilized to determine the amount received at…

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Do Future Value of Annuity Alone Gives Unbiased Analysis of Profitability

FV of annuity = P [{(1+r)n – 1} ÷ r] P = Periodic Payment r = rate n = number of periods Typically, the future value of annuity formula is used to calculate the future value of a rente or annuity which is basically a series of the periodic payment….

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How Free Cash Flow to Equity Give a Catch to Liquidity Status of a Business

Free Cash Flow to Equity = Net income + depreciation + amortization – Capital expenditures – ∆Working capital + net borrowing Free Cash Flow to Equity formula is long enough but is useful to calculate the equity available for shareholders. In the first part of free cash flow to equity…

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Is Future Value of Annuity Due Offer Reasonable Outcomes to Make Decisions

Future Value of Annuity Due = (1 + r) × P [{(1 + r)n – 1} ÷ r] P = Periodic Payment r = rate n = number of periods Future value of annuity due formula is utilized to calculate the amount one will receive at maturity of an investment…

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Is Debt to Equity Ratio Really Gives a Fair Assessment to Business Sustainability

Debt to equity = Total liabilities ÷ Total shareholder’s equity Debt to equity ratio focuses on the capability of a company to meet its both short-term and long-term liabilities in relation to its equity. Debt/Equity ratio can be calculated by dividing total liabilities with equity. Basically, the D/E ratio is…

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Is Doubling Time with Continuous Compounding Useful in ROI Analysis

Doubling Time w/t Continuous Compounding = ln(2) ÷ r r = rate Doubling time with continuous compounding is utilized to determine the time required to double an investment using continuous compounding interest rate. With this equation, a person takes the product of natural log with 2 and then divide the…

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