Equations Flashcards
Percentage change
New - old
————— X 100
Old
Gross profit margin
Margin = gross profit
—————— X100
Revenues
How to calculate profit
Profit = revenue - total cost
How to calculate total revenue
Total revenue = quantity x price
Operating profit margin calculation
Operating profit
———————— X 100
Revenue
Market capitalisation
Number of shares issued X Current mark price per share
Break even
Fixed cost
—————————————
(Selling price - variable cost)
Contribution
Total sales - total variable cost
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Contribution per unit x q
Margin safety
Actual output - break even point
Working capital
Current assets — current liability
Current ratio
Current assets
————————
Current liability
Acid Test Ratio
Current assets — stock
————————————
Current liabilities
Gross profit
Sales rev - cost of sales
Operating profit
Gross profit - operating expenses
Profit margin
Net profit X 100
——————
Sales revenue
Net profit
Gross profit - operating expenses
Profit (2)
Total rev - total cost
