The discount factor of a company is the rate of return that a capital expenditure project must meet to be accepted. It is used to calculate the net present value of future cash flows from a project ...

Net sales show the true revenue your business makes from selling products or services, after subtracting returns, allowances and discounts. To find net sales, begin with your total sales and deduct ...

Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing ...

Charities blend nonprofit missions with for-profit strategies for clarity in financial reporting. Understanding the statement of activities helps track net assets in charities. Calculate a charity's ...

Net worth is calculated by subtracting total liabilities from total assets. Your net worth can fluctuate over time. Having a negative net worth is not necessarily problematic. Income isn’t the only ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...