Formulas Flashcards
Total Revenue
Selling Price x Quantity Sold
Total Costs
Fixed Costs + Total Variable Costs
Profit
Total Revenue - Total Costs
Total Contribution
Sales Revenue - Total Variable Costs
Profit Using Contribution
Contribution Per Unit x Margin of Safety
Break Even Output
Total Fixed Costs / Unit Contribution
Margin of Safety
Actual Sales - Break Even Level of Output
Gross Profit Margin
Gross Profit / Revenue x 100
Mark up
Gross Profit / Costs of Sales x 100
Profit Margin
Profit / Revenue x 100
Return on Capital
Profit / Capital Employed x 100
Net Current Assets
Current Assets - Current Liabilities
Net Assets
Non Current Assets + Net Current Assets - Long Term Liabilities
Capital Employed
Opening Capital + Profit of the Year
Balance Sheet
Net Assets = Capital Employed
Current Ratio
Current Assets / Current Liabilities
Liquid Capital Ratio
Current Assets - Inventory / Current Liabilities
Trade Payable Days
Trade Payables / Credit Purchase x 100
Trade Receivable Days
Trade Receivable / Credit Sales x 100
Revenue
Unit Price x Quantity sold
Cost of Good Sold
Opening Inventory + Purchases - Closing Inventory
Profit / Loss For The Year
Gross Profit - Expenses + Other Income
Net Book Value
Cost - Depreciation
Inventory Turnover
Average Inventory Turnover / Cost Of Sales x 365
