Formulas Flashcards
Total costs
Fixed costs + variable costs
Revenue
Price x quantity
Break even in units
Fixed cost/ price - variable cost
Break even in cost/revenue
Break even point in units x sales price
Margin of safety
Actual sales - break even sales
Interest (on loans) in %
(Total repayment- borrowed amount/ borrowed amount) x 100
Net cash flow
Inflows - outflows
Opening balance
Closing balance of previous period
Closing balance
Opening balance + net cash flow
Gross profit
Sales revenue - cost of sales
Gross profit margin %
Gross profit/sales revenue x 100
Net profit
Gross profit - other operating expenses and interest
Net profit margin
Net profit/sales revenue x 100
Average rate of return %
(Average annual profit/cost of investment) x 100
Average annual profit
Total profit/ number of years