Business finance formulae Flashcards
How do you calculate total cost
Fixed cost + variable costs
How do you calculate total revenue
prices * quantity sold
How do you calculate gross profit
sales revenue - variable costs
How do you calculate net profit
sales revenue - (fixed costs + variable costs)
How do you calculate gross profit margin
(gross profit / sales revenue ) * 100
How do you calculate net profit margin
(net profit / sales revenue ) * 100
How do you calculate average rate of return
(average annual profit/initial capital outlay)*100
How do you calculate break even
fixed cost / (selling price - variable cost)
How do you calculate margin of safety
current output - breakeven output
How do you calculate net cash flow
total inflows - total outflows
How do you calculate closing balance
net cash flow + opening balance
What is the opening balance in a met cash flow forecast
Opening balance is the previous months closing balance
