FORMULA Flashcards
net cash flows
total inflows - total outflows
sales volume
total number of units sold over a period of time
sales revenue
number of units sold x unit price
total variable costs
number of units sold x variable cost per unit
total costs
fixed costs + variable costs
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit x number of units sold
break even
fixed costs / contribution per unit
variance
actual - budget
gross profit
sales revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit +/- finance costs
gross profit margin
(gross profit / sales revenue) x100
operating profit margin
(operating profit / sales revenue) x 100
profit for the year margin
(profit for the year / sales revenue) x 100
current ratio
current assets/ current liabilities
acid test ratio
(current assets - stock) / current liabilities
productivity
output per period (units) / number of employees in that period
capacity utilisation
(actual level of output / maximum possible level of output) x 100
market share
(sales of a product or business / total market sales) x 100
price elasticity of demand
% change in quantity demanded / % change in price
income elasticity of demand
% change in quantity demanded / % change in income
debt to equity ratio
debt / equity x 100
gearing ratio
non-current liabilities / total equity + NCL x100
