Finance Equations Flashcards
total costs
total fixed costs + total variable costs
revenue
selling price per unit x quantity sold
profit/loss
revenue - total costs
average unit cost
total costs / output
net cash flow
total cash inflows - total cash outflows in a given period
opening balance
close balance of the previous periodc
closing balance
opening balance + net cash flow
break even
fixed costs / price per unit - variable costs
margin of safety
actual (or budgeted) output - break even point
average rate of return (%)
average annual profit (total profit / no. of years) x 100 / cost of investment
gross profit
sales revenue - cost of sales
gross profit margin (%)
gross profit x 100 / sales revenue
operating profit
gross profit - overheads
net profit
gross profit - overheads, tax, interest
net profit margin (%)
net profit x 100 / sales revenue
net current assets
total current assets - total current liabilities
net assets
(non-current assets + net current assets) - non-current liabilities
total equity
value of net assets
market share
sales of one product or brand or business x 100 / total sales of market as a wholem
market size
the total volume of sales of a product or the total value of sales of a product
