Finance - Formulae Flashcards
IS - Gross profit
Sales turnover - cost of sales
IS - Retained profit
Net profit - (tax + dividends)
Sales turnover (total revenue)
SPPU x output
Cost of sales
Spending on stock
IS - Net profit
Gross profit - indirect costs
CF - Net cash flow
Recipts - payments
CF - Closing balance
Opening balance + net cash flow
CF - Opening balance
Closing balance of previous period
Total costs
Fixed cost + total variable cost
ARR - Average annual profit
Total profit (Tr - Tc)
————————
No. Of years
Average rate of return (ARR)
Average Annual profit
——-———-———- X 100
Initial investment cost
Profit
TR - TC
PR - Gross profit margin
Gross profit
————— X 100
Sales
- Expressed as %
- The higher the better
PR - Net profit margin
Net profit
———— X 100
Sales
- Expressed as %
- The higher the better
Net profit margin is better as all costs are taken away
Market share
Sales of one product/brand/business ÷ Total sales of market as a whole X100
