Formulas Flashcards
Revenue
Revenue = price x quantity
Profit
Profit = total revenue - total expenses
Total costs
Total costs = fixed costs + variable costs
variable costs
cost per unit x total number of units
Net cash flow
Net cash flow = total cash outflow - total cash inflow
Closing balance
Closing balance = net cash flow + opening balance
Breakeven
Breakeven = fixed costs / (sales price per unit - variable costs per unit)
Contribution
Contribution = revenue - variable costs
gross profit margin (GPM)
GPM = gross profit / revenue x 100
net profit margin (NPM)
NPM = net profit / revenue x 100
net profit
net profit = gross profit - overheads (expenses)
gross profit
gross profit = sales revenue - less costs of sales
costs of sales
cost of sales = sales income - gross profit
average rate of return (ARR)
ARR = annual return or average yearly profit / investment cost x 100
average yearly profit
average yearly profit = total profit / number of years
