Equations Flashcards
Cost of sales
Opening stock + purchases - closing stock
Operating profit
Gross profit — expenses
Profit for the year
Operating profit - interest & tax
Gross profit margin
(Gross profit / sales revenue) x 100
Operating profit margin
(Operating profit / sales revenue) x 100
Profit for the year margin
(Profit for the year / sales revenue) x 100
Current ratio
Current assets / current liabilities
Acid text ratio
Liquid assets / current liabilities
Working capital
Current assets - current liabilities
Capacity utilisation
(Actual output / maximum output) x 100
Net Cash Flow
Cash inflows - cash outflows
Closing Balance
Opening balance + net cash flow
Sales Volume
Sales revenue / selling price per unit
Total Costs
Fixed costs + Variable costs
Fixed costs
Total costs - variable costs
Total Variable Costs
Total costs - fixed costs
Contribution per unit
Selling price - variable cost per unit
Break even point
Fixed costs / contribution per unit
Margin of Safety
Actual output - Break even output
Variance Analysis
Budgeted finance - Actual figure
Gross Profit
Sales revenue - cost of sales
