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 x 100
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
Actual figure - budgeted 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
