Here’s an example of how a business report or document can include LaTeX formulas to explain financial metrics, profitability calculations, and other key business formulas. You can use this format to introduce mathematical expressions in a business context.
To measure revenue growth, we use the following formula:
\[ \text{Revenue Growth} = \frac{\text{Revenue in Current Period} - \text{Revenue in Previous Period}}{\text{Revenue in Previous Period}} \times 100 \] |
Example:
If a company had revenue of $500,000 in the current period and $450,000 in the previous period, the revenue growth is calculated as:
\[ \text{Revenue Growth} = \frac{500,000 - 450,000}{450,000} \times 100 = 11.11\% \] |
The break-even point is where total revenues equal total costs. The formula is:
\[ \text{Break-even Point (Units)} = \frac{\text{Fixed Costs}}{\text{Selling Price per Unit} - \text{Variable Cost per Unit}} \] |
Example:
A company with fixed costs of $100,000, selling price per unit of $50, and variable cost per unit of $30 would calculate the break-even point as:
\[ \text{Break-even Point} = \frac{100,000}{50 - 30} = 5,000 \text{ units} \] |
The NPV of an investment is calculated as:
\[ NPV = \sum_{t=1}^{T} \frac{C_t}{(1 + r)^t} - C_0 \] Where: \(C_t\) = Cash inflow during period \(t\) \(r\) = Discount rate \(C_0\) = Initial investment \(T\) = Total number of periods |
Example:
For an investment with an initial cost of $100,000, cash inflows of $20,000 for the next 6 years, and a discount rate of 8%, the NPV is:
\[ NPV = \sum_{t=1}^{6} \frac{20,000}{(1 + 0.08)^t} - 100,000 \] |
Return on Investment is calculated as:
\[ ROI = \frac{\text{Net Profit}}{\text{Cost of Investment}} \times 100 \] |
Example:
If a project generates a net profit of $25,000 and the cost of investment is $100,000, the ROI is:
\[ ROI = \frac{25,000}{100,000} \times 100 = 25\% \] |
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