Formulas Flashcards
Contribution formula
Selling price – Variable cost per unit
Margin Of Safety
Output-Breakeven Point
Units being produced and sold – Break-even output
Total Revenue
Price Per Item x Quantity Sold
Average Variable Costs
Total Variable Costs/Output
Total Variable Costs
Variable Costs Per Unit x Output
productivity formula
output / quantity of input
TOTAL COST
TOTAL FIXED COSTS + TOTAL VARIABLE COSTS
AVERAGE COST * OUTPUT
AVERAGE COST (unit cost)
TOTAL COST/ TOTAL OUTPUT
Break-even level of production
Total fixed costs/ Contribution per unit
net cashflow formula
cash inflow-cash outflow
working capital formula
current assets - current liability
cost of goods sold formula
opening stock + purchase - closing stock
gross profit
sales revenue - cost of goods sold
net profit before interest and tax (NBIT)
gross profit - expenses
net profit before tax (NBT)
NBIT- interest
profit after tax (PAT)
NBT- tax
retained profits formula
PAT - dividends
profit
sales revenue- cost of making products (total costs)
shareholders equity
total assets- total liabilities
capital employed formula
shareholders equity - non current assets
shareholders funds formula
share capital + retained profits
Return on Capital Employed (ROCE)
(net profit / capital employed) x 100
gross profit margin
(gross profit/revenue) x 100
net profit margin
(net profit/revenue) x100
current ratio
current assets/current liabilities
acid test ratio
(current assets - inventories)/current liabilities
