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 contributions
Total revenue - total variable costs
contribution per unit
Takes into account how much units are sold
selling price - variable cost4 per unit
Profit
Total revenue - total costs
Total contributions.
Sales revenue - total variable cost
Profit using contribution
contribuTion per unit x margin of safety
Break even output
Total fixed costs / contribution per unit
Margin of safety
Actual sales - break even level of output
Gross profit
Sales revenue - cost of goods sold
Cost of goods sold
Opening inventory + purchase - closing inventory
Profit
total revenue - total costs
Net book value
Cost - depreciation
Net assets
Non-current assets + net current assets - long term liabilities
Capital employed
Opening inventory + Profit for the year less drawings
Balance sheet - what needs to balance
Net assets = Capital employed
Gross profit margin
% of gross profit made on sales
Gross profit/Revenue x 100
Mark up
What % is added to the costs of goods sold to reach selling price
Gross profit/ cost of goods sold x 100
Profit margin
Profit/revenue x 100
Return on capital employed
Company % return the business is making in relation to the capital invested
If ROCE is 10% means for £1 invested the business returns 10p in net profit
Net Profit/capital employed x 100
Current ratio
Current assists/current liabilities
Liaquid cpital ratio
Current assets - inventory/current liabilities
Trade receivables days
Trade receivables/credit sales x365
Trade payable days
Trade payables/ credit sales x 365
Inventory turnover
Average inventory/cost of goods sold x 365
break even
Fixed cost / price - variable costs
Opening balance
Closing balance - net cash flow
Average inventory
Opening inventory + closing inventory/2
