Finance / June 10, 2018 / Alicia Franklin
Annuity due is an annuity in which the cash flows occur at the start of each period. Due to the advance nature of cash flows, each cash flow is subject to the compounding effect for one additional period when compared to an otherwise similar (ordinary) annuity. The future value of an annuity due is higher than the future value of an (ordinary) annuity by the factor of one plus the periodic interest rate.
An EBIT Margin is the operating earnings over operating sales. This margin allows investors to understand true business costs of running a company, because parts of a company's property, plant, and equipment will eventually need to be replaced as they get used, broken down, decayed, etc.
A break-even analysis is a useful tool for determining at what point your company, or a new product or service, will be profitable. Said another way, it’s a financial calculation used to determine the number of products or services you need to sell to at least cover your costs. When you’ve broken even, you are neither losing money nor making money, but all your costs have been covered.
The debt-to-income (DTI) ratio is a personal finance measure that compares an individual’s debt payment to his or her overall income. The debt-to-income ratio is one way lenders, including mortgage lenders, measure an individual’s ability to manage monthly payment and repay debts. DTI is calculated by dividing total recurring monthly debt by gross monthly income, and it is expressed as a percentage.
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