Formulas Flashcards
Gross Profit
Sales revenue - Cost of sales
Break Even
Fixed costs/(Price - Avergae variable cost)
Cost of Sales (COS)
(Opening stock + Purchases) - Closing stock
Total Costs
Total Variable costs + Total fixed costs
Working capital (Net current assets)
Current assets - Current liabilities
Profit
Total revenue - Total costs
Expenses
Net profit - Gross profit
Acid test (quick) ratio
(Current assests - Stock) / Current liabilities
Unit contribution
Price - Average variable cost
Retained profit
Profit after interest and tax - Dividends
Net assets
Total Assets - Total Liabilities
Profit Before Intrest and Tax
Gross profit - Expenses
Equity
Share Capital + Retained Earnings
Capital employed
Non-current liabilities + Equity
Gross profit margin
(Gross profit / Sales revenue) x 100
Current ratio
Current assets / Current liabilities
Margin of safety
Actual sales volume - Break even sales volume
Market share
(Firm’s sales revenue/Total industry’s sales revenue) x 100
Return on capital employed
(Profit before intrest and tax / Capital employed) x 100
Reorder quantity
Maximum stock level - Buffer stock level
Defect rate
(Number of defects/Output tested) x 100
Labour productivty rate
Total output / Total labour input
Lead time
Date of delivery - Date when order was placed
Straight line depreciation (per year)
(Purchase cost - Residual value) / Lifespan of asset
Units of production method (depriciation)
(Purchase cost - Residual Value / Estimated total units to be produced) x Actual Units produced
Labour turnover rate
(Number of employee departures/Average number of employees) x 100
Variance
Actual - Budgeted
Operating leverage
Total contribution / Profit
Payback Period
Initial Investment Cost/Annual Cashflow from investment
Average Rate of Return
(Total Returns - Capital Cost)/Years of Usage / Capital Cost x 100
Net Present Value
Total Present Values - Original Cost
