Formula Cards Flashcards
Total revenue
Quantity sold X selling price
Total costs
Fixed costs + total variable costs
Contribution per unit
Selling price – variable cost per unit
Total contribution
Contribution per unit X Quantity sold
Break Even Point
Fixed cost ÷ contribution per unit
Margin of Safety
Actual sales in units – break-even point
Gross Profit
Sales revenue – cost of goods sold
Net Profit
Gross profit – expenses + other income
Straight line depreciation
Historic value – residual value ÷ expected life
Gross profit margin
Gross profit ÷ revenue X 100
Net profit margin
Net profit ÷ revenue X 100
Mark Up
Gross profit ÷ cost of sales X 100
Return on Capital Employed (ROCE)
Net 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
Average inventory
Opening inventory + closing inventory ÷ 2
Inventory turnover
Average inventory ÷ cost of sales X 365
Net cash flow
Inflows – outflows
Closing balance
Opening balance + net cash flow
Opening Balance
Last months closing balance
Profit
Total revenue - total costs
Operating profit
Gross profit - Other operating expenses
