Paper 2 Formulas Flashcards
Margin of Safety
Actual output- Breakeven output
Breakeven units
Fixed costs
(SPPU-VCPU)
Profit (using contribution)
Total contribution- fixed costs
Contribution per unit
SPPU- VCPU
Total Contribution
CPU x quantity sold
Profit
Total revenue - total costs
Total costs
Fixed costs + variable costs
Total revenue
SPPU x units sold
Closing balance
Opening balance + net cash flow
Net cash flow
Total inflows - total outflows
Total variable costs
VCPU x output
Current Ratio
Current Assets
Current Liabilities
Gross Profit
Revenue - cost of sales
Operating Profit
Gross Profit - fixed overheads (fixed costs)
Profit before Tax
Operating Profit - financing costs
Corporation tax (%)
Charged on operating profit of % flat rate
Net Profit
Profit before Tax - tax
Acid Test Ratio
Current Assets - stock
Current Liabilities
Gearing %
Non current liabilities X 100
Total equity + non current liabilities
Breakeven using contribution
Fixed costs
Contribution per unit
ROCE Ratio (%)
operating profit x 100
Total equity + non current liabilities
Labour productivity
Total output
Number of workers
Labour cost per unit
Labour costs
Output
Labour turnover
Number of employees leaving
Average no. of employees
Staff retention
Number of staff staying over a period of time x 100
Average no. of staff in past (in time period)
Absenteeism
Number of work days lost though absence x 100
Total possible days worked
Average cost per unit
Total production cost in time period (£)
Total output in time period (units)
Capacity utilisation
Current output x 100
Maximum output
Budget variance
Budgeted figure - actual figure
Sales volume
Sales revenue
Selling price
Gross profit margin
Gross profit x 100
Revenue
Operating profit margin
Operating profit x 100
Revenue
Net profit margin
Net profit x 100
Revenue
Working capital
Current assets - current liabilities
Payback
No. of full years + what you need x 12
what you get
Average rate of return
average annual profit x100
initial costs
Average annual profit
Total NCF - investment costs
No. years of project
Net Present Value
NCF x discount factor
- then add up all years (calculated figures) (Y)
- Y - investment cost
