All Equations Flashcards
total costs
fixed costs + variable costs
unit cost
total cost/output
average cost
(fixed costs + variable costs)/output
average revenue
total revenue/number of sales
contribution per unit
price - variable costs
profit
total contribution - fixed costs
break even
fixed costs / contribution per unit
margin of safety
Actual level of output - breakeven level of output
payback
amount owed/net cash flow for following year
ARR
/
gross profit
sales revenue - cost of sales
operating profit
gross profit - expenses
profit before tax
operating profit - finance costs
profit for the year
net profit - tax and dividends
cost of sales
opening inventory + purchases in this year - closing inventory
straight line depreciation
initial cost - (residual value)/life of asset)
current ratio
current assets/current liabilities
acid test ratio
(current assets - inventory (stock))/current liabilities
gearing
non current liabilities/capital employed x 100
debt to equity ratio
debt/equity x 100
interest cover
operating profit/interest payable
non-current asset turnover
revenue/non current assets
stock (inventory) turnover
cost of stock/average stock
debtor days (trade receivables)
trade receivables/revenue x 365
