Finance formulas Flashcards
Total revenue
Selling price x quantity sold
Total costs
Fixed costs + total variable costs
Profit
Total revenue - total costs
Total contribution
Sales revenue - total variable costs
Contribution per unit
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
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
Profit / capital employed x 100
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
