equationss Flashcards

1
Q

Revenue =

A

Quantity/Output * Price

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2
Q

Productivity =

A

Output/Input

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3
Q

Labor Productivity

A

Output/Number of Employees

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4
Q

Working Capital

A

Current Assets - Current Liabilities

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5
Q

Capital Employed/Share Holders Funds =

A

Total Assets - Total Liabilities

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6
Q

Profit =

A

Revenue - Cost of Sales

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7
Q

Profit (break-even) =

A

Total Revenue - Total Costs

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8
Q

Average Costs =

A

Total Costs/Total Output

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9
Q

Total Costs =

A

Fixed Costs + Variable Costs

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10
Q

Break Even Point =

A

Fixed Costs/ Contribution per unit
OR
Fixed Costs/Unit Price-Variable Cost

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11
Q

Contribution Per Unit =

A

Unit or Selling Price - Variable Costs

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12
Q

Margin Of Safety =

A

Maximum Output - Break Even Output

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13
Q

Gross Profit =

A

Revenue - Cost of Sales

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14
Q

Gross Profit Margin =

A

Gross profit/Revenue * 100

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15
Q

Net Profit =

A

Gross Profit - Expenses

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16
Q

Net Profit margin

A

Net Profit/ Revenue

17
Q

Return on Capital Employed (ROCE)

A

Net Profit/Capital Invested *100

18
Q

Current Ratio =

A

Current Assets/Current Liabilities

19
Q

Acid Test Ratio

A

(Current Assets - Inventory)/Current Liabilities