Analysing financial performance notes Flashcards
Gross profit
Gross profit = Revenue - Cost of Goods Sold
Operating profit
Gross profit- operating expenses
Gross profit margin
Gross profit/ Revenue
Contribution
sale price - total variable costs
Margin of safety
Max output- breakeven output
Breakeven level of output
Fixed/ contribution
Market share
sales/total sales of that industry
Market Capitalisation
Price of shares x number of shares
Total costs
Fixed + variable
Profit (x2)
Total rev - total costs
Total contribution - fixed costs
Variable costs
Variable cost per unit x number sold
Labour productivity
Output/ number of workers
Total contribution (2x)
Contribution x units produced
Total revenue - Total variable costs
Gross profit margin
Gross profit/sales revenue x100
Operating Profit margin
Operating profit/sales revenue x100
