Equations Flashcards
Net cash flow
Total inflows – Total outflows
Sales volume
total number of units sold over a period of time
Sales revenue
number of units sold x unit price
Total variable costs
number of units sold x variable cost per unit
Total costs
Fixed costs + variable costs
Contribution per unit
Selling price per unit – Variable cost per unit
Total contribution
Contribution per unit x Number of units sold
Break-even
Fixed costs/ Contribution per unit
Variance
Actual – Budget
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit minus overheads
Net profit
Operating Profit - financing and tax
Gross profit margin
(Gross profit / Sales revenue) x 100
Operating profit margin
(Operating profit/ Sales revenue) x 100
Profit for the year (net profit) margin
(Profit for the year / Sales revenue) x 100
Current ratio
Current assets/ current liabilities
Acid test ratio
(Current assets – stock) / current liabilities
Productivity (labour)
Output per period (units)/ Number of employees in that period
Capacity utilisation
(Actual level of output/ Maximum possible output) x 100
Simple Payback
sum invested / net cash per time period
Simple Payback monthly
outlay outstanding / monthly cash in year of payback
Average rate of return
(Average annual return / initial outlay) x 100
Current Ratio
current assets/current liabilities
Acid Test Ratio
(current assets - stock) / current liabilities
Gearing
(non current liabilities / capital employed) x 100
ROCE
(Operating Profit /Capital Employed) x 100
Total Float
Latest Finish Time (LFT) - Duration - Earliest Start Time (EST)
Free Float
Earliest Start time (EST) of next - Duration - EST of current one
