Formula Flashcards
Net cash flow
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 and tax
Gross profit margin
(Gross profit/ sales revenue) x 100
Operating profit margin
(Operating profit/ sales revenue) x 100
Profit for the year (net profit) margin
(Profit for the year/ sales revenue) x 100
Current ratio
Current assets/ current liabilities
Productivity (labour)
Output per period (units) / number of employees in that period
Capacity utilisation
(Actual level of output/ maximum possible output) x 100
Gearing
Non current liabilities / capital employed x 100
ROCE
Operating profit / capital employed x 100
Current ratio
Current assets/ current liabilities
Acid test ratio
Current assets - stock/ current liabilities
Capital employed
Non current liabilities + total equity
Total equity
Share capital + retained profit
Price elasticity of demand
% Change is quantity demanded / % Change in price
Income elasticity of demand
% Change in quantity demanded / % Change in income
