Business Formulae Flashcards
TC
TC = TFC + TVC
Sales Revenue
Sales revenue = Price x Quantity Sold
Gross Profit
Gross profit = Sales Revenue - Cost of goods sold
COGS
COGS = Opening Stock + Purchases - Closing Stock
Net Profit
Net Profit = Gross Profit - Expenses (Indirect or Fixed costs)
Equity
Equity = Share Capital + Retained Earnings (should equal net assets)
Net Assets
Net Assets = (Noncurrent Assets + Current Assets) - (Noncurrent Liabilities + Current Liabilities)
Annual Depreciation
Annual depreciation = (Purchase cost - Scrap value) / Lifespan
Depreciation per unit
Depreciation per unit = (Purchase Cost - Scrap Value) / Expected Number of units over lifetime
Depreciation expense
Depreciation expense = Depreciation per unit * Number of units produced (so far)
GPM
GPM = Gross Profit / Sales Revenue * 100
Net Profit Margin
Net Profit Margin = Profit before interest and tax / Sales Revenue * 100
ROCE
ROCE = Profit before Interest and Tax / Capital Employed * 100
Capital Employed
Capital Employed = Noncurrent Liabilities + Equity = Total Assets - Current Liabilities
Current Ratio
Current Ratio = Current Assets / Current Liabilities
Stock turnover ratio
Stock Turnover (times) = Cost of Goods Sold / Average Stock
Acid (Quick) Ratio
Quick Ratio = (Current Assets - Stock) / Current Liabilities
Gearing Ratio
Gearing Ratio = Noncurrent Liabilities / Capital Employed * 100
Stock turnover (days)
Stock Turnover (days) = Average Stock / Cost of Goods Sold * 365
Debtor days
Debtor Days = Debtors / Total Sales Revenue * 365
Net cash flow
Net Cash Flow = Inflows of Cash - Outflows of Cash
Average stock
Average Stock = (Opening Stock + Closing Stock) / 2
Creditor days
Creditor Days = Creditors / Cost of Goods Sold * 365
Working captial
Working Capital = Current Assets - Current Liabilities
