Finance Formula's Flashcards
Net cash flow
Total Cash inflows - Total cash outflows
Closing balance
Opening balance + net cash flow
Total revenue
Selling price x Quantity sold
Total cost
Fixed costs + variable costs
Profit
Total revenue - Total costs
Total contribution
Sales revenue - total variable costs
Contribution
Selling price - Variable costs
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 x quantity sold
Gross profit
Sales revenue - cost of goods sold
Cost of goods sold
Opening inventory + purchases - closing inventory
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 (fixed) + net current assets - long term liabilities
Capital employed
Opening capital + profit for the year
Balance sheet (what needs to balance)
Net assets = capital employed
Gross profit margin
Gross profit / revenue x 100
Profit margin
Profit / revenue x 100
ROCE
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
