business formulas Flashcards
operating profit formula
gross profit - other operating expenses
operating profit margin formula
operating profit over revenue x 100
gross profit formula
revenue - cost of sales
gross profit margin
gross profit over revenue x 100
working capital /net assets formula
current assets - current liabilities
current ratio
current ratio = current assets over current liabilities
acid test ratio
current assets - inventory over
current liabilities
closing balance
net cash flow + opening balance = closing balance
break even point
fixed costs over selling price - vc
capacity utilisation
existing output over maximum possible output x 100
labour productivity
total output over number of employees
revenue
quantity sold x price
margin of saftey
current level of output - break even point
contribution
selling price - variable cost per unit
average cost
(of each product)
total cost
over
output
