A Level Finance Formualas Flashcards
Break even
Fixed cost / contribution
Margin of safety
Current output - breakeven output
Net cash flow
Cash inflow – cash outflow
CFF closing balance
Opening balance + net cash flow
Cost of sales (cost of goods sold)
Opening Stock + Purchases – Closing Sales
Gross profit
Sales Revenue – Cost of Sales
Gross profit %
(Gross Profit / Sales revenue) x 100
Net profit (income statement)
Gross Profit – Expenses
Net profit %
(Net profit / sales revenue) x 100
Capacity utilisation
(Actual output / maximum possible output) x 100
Labour productivity
output per time period - Number of employees at work
Labour productivity
output per time period - Number of employees at work
Labour turnover
(Staff leavers per year / average number of staff) x 100
Added value
selling price of product – the cost of production
Working Capital
Current asset – current liabilities
Net Assets
Fixed assets + current assets – current liabilities