Equations Flashcards
How do you calculate net profit margin?
Net profit / total revenue x 100
How do you calculate total revenue?
Selling price x quantity sold
How do you calculate total cost
Fixed cost + variable cost
How do you calculate current ratio
Current assets / current liabilities
How do you calculate break even?
Fixed cost / selling price - variable cost
How do you calculate gross profit margin?
Gross profit / total revenue x 100
How do you calculate ARR?
- Total net cash flow
- Profit = net cash flow - investment
- Annual profit = profit / years
- ARR = annual profit / investment x 100
How do you calculate the pay back period?
Additional net cash flow / cash flow in that year x 12
How do you calculate the acid test ratio?
Current assets - inventories / Current liabilities
How do you calculate the price elasticity of demand?
% change in quantity demanded / % change in price
How do you calculate the income elasticity of demand?
% change in quantity demanded / % change in income
How do you calculate total contribution?
Total sales - total variable costs
Or
Contribution per unit x number of units sold
How do you calculate contribution per unit?
Selling price per unit - variable cost per unit
How do you calculate profit?
Revenue - total costs
How do you calculate the margin of safety?
The difference between actual output and the breakeven output
