calculations Flashcards
net cash flows
Net cash flow = Total inflows – Total outflows
sales volume
Sales volume = total number of units sold over a period of time
sales revenue
Sales revenue = number of units sold x unit price
total variable costs
Total variable costs = number of units sold x variable cost per unit
total costs
Total costs = Fixed costs + variable costs
contribution per unit
Contribution per unit = Selling price per unit – Variable cost per unit
total contribution
Total contribution = Contribution per unit x Number of units sold
break even
Break-even = Fixed costs/ Contribution per unit
variance
Variance = Actual – Budget
gross profit
Gross profit = Sales revenue minus cost of sales
operating profit
Operating profit = Gross profit minus overheads
net profit
Net profit = Operating Profit +/- finance costs
gross profit margin
Gross profit margin = (Gross profit / Sales revenue) x 100
operating profit margin
Operating profit margin = (Operating profit/ Sales revenue) x 100
profit for the year margin
Profit for the year (net profit) margin = (Profit for the year / Sales revenue) x 100
current ratio
Current ratio = Current assets/ current liabilities
acid test ratio
Acid test ratio = (Current assets – stock) / current liabilities
productivity
Productivity (labour) = Output per period (units)/ Number of employees in that period
capital utilisation
Capacity utilisation = (Actual level of output/ Maximum possible output) x 100
