Business Formula Flashcards
Productivity
Quantity of output / Quantity of input
Labour productivity
Output (over a period of time) / Number of employee
Total cost
Fixed cost + Variable cost
Average cost (unit cost)
Total cost / Total number of output
Contribution
Selling price - Variable cost
Break-even level of output
Total fixed cost / Contribution
Gross profit
Revenue - Cost of goods sold
Net cash flow
Cash inflows - Cash outflows
Closing bank balance
Net cash flow + Opening bank balance
Net worth / Equity
Assets - Liabilities
Cost of sales
Total variable cost of production + (opening inventory - closing inventory of finished goods)
Net profit
Gross profit - expenses
Profit after tax
Net profit - tax
Retained profit
Profit after tax - dividends
Shareholders’ equity
Total assets - Total liabilities
Total assets
Shareholders’ equity + Total liabilites
Capital employed
Shareholder equity + Non-current liabilities
Return on capital employed (ROCE)
(Net profit / Capital employed) x 100
Gross profit margin (GPM)
(Gross profit / Sales revenue) x 100
Net profit margin (NPM)
(Net profit / Sales revenue) x 100
Current ratio
Current assets / Current liabilites
Acid test
(Current assets - Inventories) / Current liabilities
