Theme 2 : formulas Flashcards
Gross Profit
Sales Revenue - Cost of sale
Operating Profit
Gross Profit - Expenses
Profit for the Year (Net Profit)
Operating Profit - Intrest
Gross Profit Margin
Gross Profit / Sales Revenue x 100
Operating Profit Margin
Operating Profit / Sales Revenue x 100
Profit for the Year (Net Profit) Margin
Profit for the Year (Net Profit) / Sales Revenue x 100
Current Ratio
Current Assets / Current Liabilities
Acid Test Ratio
Current Assets - Stock / Current Liabilities
Profit
Total Revenue - Total Costs
Working Capital
Current Assets - Current Liabilities
Sales Volume
Sales Revenue / Price
Sales Revenue
Price x Quantity
Total Costs
Fixed Costs + Variable Costs
Total Variable
Total Costs - Fixed Costs or Average Variable x Output
Average Variable
Variable Costs / Output
Capital Productivity
Output Per Time Period / Number of Machines
Capacity Utilisation
Actual Output / Maximum Output x 100
Labour Productivity
Output Per Time Period / Number of Workers or Hours Worked
Productivity
Output Per Time Period / Input Per Time Period
Margin Of Safety
Total Output – Breakeven Point
Total Contribution
Contribution Per Unit x Number of Units Sold
Contribution
Selling Price - Variable Cost Per Unit
Breakeven
Total Fixed Costs / Contribution Per Unit
