Formulas Flashcards
Payback period
Cash flow - cumulative cash flow over cash flow + years after investment
Net cash flow =
Cash inflow - cash outflow
Net profit =
Gross profit - expenses
Total revenue =
Price x quantity sold
Profit/Loss =
Total revenue - total cost (Income - expenses)
Variable cost
Variable cost per unit x quantity produced
Total cost =
Fixed cost + variable cost
Break even point
Fixed costs over contribution per unit
Contribution per unit
Selling price - variable cost per unit
Total contribution
Contribution per unit x output
Margin of safety
Current level of output - break even point
Predicted profit (?)
(Output x contribution per unit) over fixed costs
Cost of goods sold
Opening stock + purchases - closing stock
Gross profit
Sales revenue - cost of goods sold
Assets
Liabilities + owners’ equity
Net current assets
Current assets - current liabilities
Owner equity
Assets - liabilities
(Straight line method) Amount of depreciation
Purchase price - residual value over estimated useful life
Revenue
Quantity x price
Working capital
Current assets - current liabilities
Closing balance (cash flow forecast)
Opening balance + net cash flow for the month
Cumulative net flow (payback period)
Cumulative net flow in previous year + net flow of current year
Payback period
Amount left to pay over net cash flow in that year x 12 (or in weeks or days)
NPBIT
Gross profit - expenses
NPBT
NPBIT - interest
NPAIT
NPBT - Tax
Variance
Actual income - budgeted income
Revenue market share
Sales of the organisation / sales revenue of market
(Reducing / declining balance method) Amount of depreciation
Book value of asset x depreciation rate
Total assets less current liabilities
Fixed assets + current assets - current liabilities OR fixed assets + net current assets
Net assets
Total assets less current liabilities - long term liabilities
Equity
Share capital + retained profit
Net fixed assets
Fixed assets - accumulated distribution
Closing balance
Opening balance + net cash flow for the month
Labour turnover
Number of employees leaving during period over average number of employees employed during period x 100
Capital utilisation rate
Actual output as a percentage of max output
