Formulas Flashcards
Percentage Change
Difference or change (divide) Original x 100
Revenue
sales x price
Total Costs
variable costs + fixed costs
Average Unit Costs
total cost/output
Profit
revenue – costs
Market Share
Sales value or volume of your business/Sales value or volume of the whole market x 100
Market Growth
Change in sales value or volume/Original sales value or volume x 100
Average Rate of Return
ARR (%) = Average Annual Profit/Initial Investment x 100
Average Annual profit = Total Profits/Number of years
Break Even Output
Total Costs = Total Revenue
Contribution method:
Contribution = Selling price - Variable costs
Break even = Fixed costs
ContributionMargin of Safety
Actual output - Break even output
Net Cash Flow
Total cash inflows – total cash outflows
Closing Balance Cash flow
Opening Balance + net cash flow
Opening Balance Cash flow
Closing balance of the previous month
Gross Profit
Revenue – Costs of Sales
Operating Profit
Gross Profit – Overheads or expenses
Net Profit
Operating Profit – tax – finance costs
Gross Profit Margin
Gross profit x100
Sales revenue
