Theme 2 Calculations Flashcards
Gross profit margin
Gross profit
—————— x 100
Revenue
Operating profit margin
Operating profit
———————— x 100
Revenue
Profit for the year (net profit margin)
Net profit before tax
—————————— x 100
Revenue
Working capital
Current assets - current liabilities
Acid test ratio
Current assets - inventories (stock)
—————————————
Current liabilities
Current ratio
Current assets
———————
Current liabilities
Assets
Capital + liabilities
Turnover/ Revenue/ Sales Revenue
Price x quantity of sales
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating expenses (overheads)
Profit for the year (net profit)
Operating profit - interest (and exceptional costs)
OR
operating profit +/- finance costs
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Total revenue - total variable cost
OR
Unit contribution x number of units sold
Break even
Fixed costs
__________________
Contribution per unit
Net cash flow
Total inflows - total outflows
Opening balance
Previous month’s closing balance
Closing balance
Net cash flow + opening balance
Sales volume
Sales revenue
———————
Price
OR
Total number of units sold over a period of time
Sales revenue
Quantity sold x price
Total variable costs
Number of units sold x variable cost per unit
Total costs
Fixed costs + variable costs
Profit
Total revenue - total costs
Margin of safety
Actual sales level - breakeven level
Profit (margin of safety)
Margin of safety (units) x contribution per unit
Average cost/ unit cost
Total cost
—————
Output
Variance
Actual - budget
Productivity (labour)
Output per period (units)
______________________
Number of employees in that period
Capacity utilisation
Actual level of output
_______________________ X 100
Maximum possible output
