Formulas Flashcards
Net cash flow
Total cash inflow - total cash outflow
Closing balance
Opening balance + net cash flow
Total revenue
Selling price x quantity sold
Total costs
Fixed costs + total variable costs
Profit
Total revenue - total costs
Total contribution
Sales revenue - total variable costs
Contribution per unit
Selling price - variable cost per unit
Profit ( using contribution )
contribution per unit x margin of safety
Break even output
Total fixed costs / unit contribution
Margin or safety
Actual sales - break even
Gross profit
Sales revenue - cost of goods sold
Cost of goods sold
Opening inventory + purchases - closing balance
Profit/loss for the year
Gross profit - expenses +other income
Net current assets
Current assets - current liabilities
Net assets
non current assets + net current assets - long term liabilities
Capital employed
Opening capital + profit for the year less drawing
Gross profit margin
Gross profit/revenue x 100
Mark up
Gross profit/cost of goods sold x 100
Net profit
Net profit/revenue x 100
Return on capital employed
Net profit/capital emloyed 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 payable/credit purchases x 365
Inventory turnover
Average inventory/cost of sales x 365
