Formulas Flashcards
Total costs
Fixed + Variable Costs
Unit costs
Total Cost / Output
Revenue
Price x Quantity sold
Contribution per unit
Price - Variable costs
Break Even
Fixed Costs / Contribution
Margin of Safety
Actual Sales - Break Even Sakes
Average Rate of Return
Annual Average Profit / Costs of Investment x 100
Net Cash Flow
Total Inflows - Total Outflows
Gross profit
Sales Revenue - Cost of Sales
Operating profit
Gross Profit - Expenses
Profit Before tax
Operating Profit - Finance costs
Profit for the year (Retained profit)
Net Profit - Tax and Dividends
Net Current Assets (Working Capital)
Current Assets -Current Liabilities
Net Assets
Total Assets (Current Assets + Non Current Assets) - Current Liabilities - Non Current Liabilities
Straight Line Depreciation
Initial Cost - Residual Value / Life of Asset
Current Ratio
Current Assets / Current Liabilities
Acid Test
Current Assets - Inventory (Stock) / Current Liabilities
Gearing
Non Current Liabilities / Capital Employed x 100
Debt to Equity Ratio
Debt / Equity x 100
Interest Cover
Operating Profit / Interest Payable ( Finance costs)
Asset Turnover
Revenue / Non-Current Assets
Stock Turnover
Cost of Stock / Average Stock
Debtor Days
Trade Receivables / Revenue x 365
Creditor Days
Trade Payables / Revenue x 365
Gross Profit Margin
Gross Profit / Sales Revenue x 100
Net Profit Margin
Net Profit / Sales Revenue x 100
ROCE (Return on Capital Employed)
Operating Profit / Capital Employed x 100
Return on Equity
Profit for the year / Shareholders Equity
Dividend per share
Total Dividends Paid / Number of shares issued
Dividend Yield
Dividend per share / Market price of share x 100
Earnings per share
Profit for the year / Number of shares issued
Price Earnings Ratio
Market price of share / Earnings per share
