MATHS LINK Flashcards
net cash flow
inflows - outflows
sales volume
total number of units sold over a period of time
sales revenue
units sold x unit price
total variable costs
number of units sold x variable cost per unit
total costs
variable costs + fixed costs
contribution per unit
selling price - variable costs per unit
total contribution
contribution per unit x N. units sold
break even
fixed costs / contribution per unit
variance
actual figure - budgeted figure
gross profit
sales revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit +/- finance costs
x profit margins
(x / sales revenue) X 100
current ratio
current assets / current liabilities
acid test ratio
(current assets - stock) / current liabilities
capacity utilisation
(actual level of output / max level of output) X 100
gearing ratio
(non-current liabilities / capital employed) X 100
capital employed
non-current liabilities + total equity
ROCE (return on capital employed)
(operating profit / capital employed) X 100
