Business Studies Formulae Flashcards
Gross Profit
Revenue - Cost of goods sold
Current Ratio
Current assets / current liabilities
Break even output
Total fixed costs / contribution per unit
Total revenue
Selling price X Quantity sold
Total profit
Total revenue - total costs
Revenue
Quantity sold x Unit price
Cost of goods sold
Opening inventory + purchases - closing inventory
Total costs
Fixed costs + variable costs
Capital employed
Opening capital + Profit for the year
Contribution
Selling price - variable costs
Net book cost
Cost - depreciation
Net profit margin
Net profit/ revenue x 100
Inventory turnover
Average inventory turnover / cost of sales x 365
Net profit
Gross profit - expenses + other income
Cost of sales
Opening inventory + purchases - closing
Trade payable days
Trade payables / credit purchases x 365
Net cash flow
Total cash inflow - total cash outflow
Liquid capital ratio
Current assets - inventory / current liabilities
Trade receivable days
Trade receivables / credit sales x 365
Return on capital employed
Net profit / capital employed x 100
Net assets
Non current assets + net current assets
Reducing balance depreciation
Net book value of assets that year
Net current assets
Current assets - current liabilities
Straight line depreciation
Asset purchase price - estimated salvage
Margin of safety
Actual sales - break even output
