Formulas Flashcards
Q
Sales Quantity
P
Sales Price per product
c
variable costs per product
P-c
Contribution margin per product
F
Fixed costs
Revenue
P*Q
COGS
Q*c
Gross Margin
Q*(P-c)
Operating Income (EBIT)
Q*(P-c) - F
Q*
Break-even quantity
Q*
F/(P-c)
Safety margin
(Sales level - BEP)/(Current sales level) * 100%
Operating Leverage
(Q(P-c)) / (Q(P-c)-F)
Shows the level of influence variable or fixed costs have on your revenue.
High leverage: more fixed costs. revenue volatile
Low leverage: vice versa
For every 1% of sales increase, 1 * OL% of EBIT increase
Total assets
equity + liabilities
Return on Equity
Net Profit / Average Equity
Norm : > 5%
Return on Assets
EBIT / Average total assets
Norm: > 5%
Operational Profit Margin
EBIT / Total sales
No norm
Asset Turnover
Total sales / average total assets
No norm
Inventory Holding period
(Average total inventory / COGS) * 365
No norm, but look for ~1 month
Accounts Payable Creditor Period
(Average accounts payable / COGS) * 365
No norm, but look for ~1 month
Accounts Receivable Collection Period
(Avg. accounts receivable / sales) * 365
No norm, but look for ~1 month
Current Ratio
Current Assets/current liabilities
Quick Ratio
(Current Assets - inventories)/current liabilities
Solvency
Equity / total assets
Norm: > 0,3
