Finance Flashcards
Q-cards for formulas
Net Cash Flow
Total Cash Inflow - Total Cash Outflow
Closing balance
Opening balance + Net Cash Flow
Total Revenue
Selling Price x Quantity Sold
Total Costs
Fixed costs + Total Variable costs
Profit
Total revenue - total costs
Total contribution
Selling Price - Variable Cost (per unit)
Profit (using contribution)
Contribution per unit x margin of safety
Break-even output
Total Fixed Costs / Unit Contribution
Margin of Safety
Actual Sales - Break-even level of output
Revenue
Unit price - expenses + other income
Gross Profit
Sales Revenue - Cost of Goods Sold
Profit/ Loss for the year
Gross Profit - expenses + other income
Net Book Value
Cost - Depreciation
Net Current Assets
Current Assets - Current Liabilities
Net Assets
Non-current assets + Net current assets - Long term liabilities
Capital Employed
Opening Capital + Profit for the Year less drawings
Balance Sheet (what needs to balance?)
Net Assets = Capital Employed
Gross Profit Margin
Gross Profit / Revenue x 100
Mark-Up
Gross Profit / Cost of Sales x 100
Profit Margin
Profit / Revenue x 100
Return on Capital Employed
Profit / Capital Employed x 100
Current Ratio
Current Assets / Current Liabilities
Liquid Capital Ratio
Current Assets - Inventory / Current Liabilities
Trade Receivable Days
Trade Receivables / Credit Sales x 365
Trade Payable Days
Trade Payables / Credit Purchases x 365
Inventory Turnover
Average Inventory / Cost of Sales x 365
