formulas Flashcards
Profit/loss
total revenue-total cost
Total Revenue
Selling price x Quantity sold
Gross profit
Revenue - Cost of sales
Net profit
Gross profit -Fixed cost
Contribution
Selling price - variable cost
Break even point
Fixed cost / contribution
Margin of safety
Actual sales - Break even point
Retained profit
Net profit - Dividends - Tax
Total costs
Fixed costs + Variable cost
Total variable cost
Variable cost per unit x quantity sold
Unit costs
Total cost / output
Mark up
Gross profit/Cost of sales x 100
Net profit Margin
Net profit/Revenue x 100
Gross profit margin
Gross profit/Revenue x 100
Current Ratio
Current Assets/Current liabilities
Liquid capital ratio
(Current Assets - inventory)/Currents liabilities
Trade Payables
Trade payables/Credit purchases x 365
Inventory Turnover
(Opening inventory-Closing inventory)/2
Return on capital employed
Profit/Revenue x 100
Net cash flow
Total cash inflows - Total cash outflows
