Formulas Flashcards
Total costs
Fixed costs + Variable costs
or
Direct costs + Indirect costs
Unit costs
Total cost / Output
Revenue
Price × Quantity sold
Contribution per Unit
Price - Variable costs
Break-Even
Fixed costs / Contribution per unit
Margin of Safety
Actual sales - Break-even sales
ARR (Average Rate of Return)
Annual Average Profit / Cost of investment × 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
Current assets - Current liabilities
Net Assets
Total assets - Total liabilities
Straight Line Depreciation
Initial cost - Residual value / Life of asset
Current Ratio
Current assets / Current liabilities
Acid Test
Current assets - Inventory / Current liabilities
Gearing
Non-current liabilities / Capital employed × 100
Debt to Equity Ratio
Debt / Equity × 100
Interest Cover
Operating profit / Interest payable
Asset Turnover
Revenue / Non-current assets
Stock Turnover
Cost of stock / Average stock
Debtor Days
Trade receivables / Revenue × 365
Creditor Days
Trade payables / Cost of sales × 365
Gross Profit Margin
Gross profit / Sales revenue × 100
Net Profit Margin
Net profit / Sales revenue × 100
ROCE (Return On Capital Employed)
Operating profit / Capital employed × 100
Return on Equity
Profit for the year / Shareholder’s equity
Dividend per Share
Total dividends paid / Number of shares issued
Dividend Yield
Dividend per share / Market price of share × 100
Earnings per Share
Profit for the year / Number of shares issued
Price Earnings Ratio
Market price of share / Earnings per share
