finance equations Flashcards
average rate of return (steps)
work out the total profit from an investment over its lifetime
calculate the average profit from an investment per year
calculate the average rate of return from an investment
3 step formulae for the average rate of return
Total income received from an investment over a given
period of time – cost of the investment
Total profit from the investment/Number of years
Average profit from the investment/Cost of the investment x100
break even quantity equation
Fixed costs
Price – variable cost (per unit)
net profit margin
Net profit x 100
Total revenue
net profit
\Total revenue – cost of sales - expenses
gross profit margin
Gross profit x 100
Total revenue
gross profit
Total revenue – cost of sales
profit/loss
Total revenue – total costs
total costs
(Total) variable costs + (total) fixed costs
average fixed cost
(Total) Fixed costs
quantity
Variable costs (per unit)
Total variable costs
quantity
total variable costs
Variable costs per unit x quantity
sales revenue
price x quantity
net cash flow
total inflow- total outflow
closing balance
net cash flow + opening balance
