All equations Flashcards
what is the equation for Gross profit margin?
gross profit
_____________ * 100
revenue
What is the equation for mark up?
Gross profit
_____________ * 100
cost of sales
What is the equation for net profit margin?
Net profit
______
total revenue * 100
What is the equation for ROCE?
Net profit before tax
_______
capital employed * 100
What is the equation for Current ratio?
Current assets
________________
Current liabilities
What is the equation for acid test ratio?
(current assets - inventory)
____________________________
current liabilities
What is the equation for trade payable days?
(trade payables/credit purchases)*365
What is the equation for trade recievable days?
(trade recievables/credit sales)*365
What is the equation for inventory turn over?
(average inventory/cost of sales)*365
What is the equation for total revenue?
quantity sold * selling price
What is the equation for break even point?
Total Revenue = Total costs
What is equation for contribution per unit?
selling price - variable costs per unit
What is the eqution for total contribution?
selling price - variable costs
What is the equation for break even point?
Fixed costs
_____________________
contribution per unit
What is the equation for margin of safety?
sales - breake even level of output
What is the equation for months to break even?
break-even units
___________________________
units produced per month
What is the equation for annual depreciation?
asset purchase price - estimated salvage value
_________________________________________
estimated useful life of asset
What is the equation for net assets?
Current assets + fixed assets - current liabilites
What is the equation for total costs?
fixed costs + total variable costs
What is the equation for profit?
Total revenue - total costs
What is the equation for revenue?
unit price * quantity of goods sold
What is the equation for gross profit?
Sales revenue - Cost of Goods sold
What is the equation for cost of goods sold?
opening inventory + purchases - closing inventory
Equation for profit and loss for the year?
Gross profit - expenses + other income
What is the equation for net book value?
Cost - depreciation
What is the equation for net current assets?
current assets - current liabilities
What is the equation for net assets?
non-current assets + net current assets - long term liabilities
What is the equation for Capital employed?
Opening Capital + Profit for the year
What needs to be equal on a balance sheet?
Net assets = Capital Employed
