Theme 2 Formulas Flashcards
Net cash flow
total inflows – total outflows
Total variable costs
number of units sold x unit price
Total costs
Fixed costs + Variable costs
Contribution per unit
selling price - variable costs
Total contribution
contribution per unit x number of units sold
Break even
fixed costs/ contribution per unit
Variance
actual-budget
Gross profit
sales revenue-cost of sales
Operating profit
gross profit-overheads
Net profit
operating profit- finance tax and costs
GPM
gross profit / sales revenue x 100
OPM
operating profit / sales revenues x 100
NPM
profit for the year / sales revenue x 100
Current ratio
current assets/ current liabilities
Acid Test ratio
current assets – stock / current liabilities
Productivity
output per period/ number of employees in that period
Unit costs
total costs/ total output
Capacity utilisation
actual level of output/ maximum possible output x 100
ROCE
operating profit/ capital employed x 100
capital employed
total equity + total non current liabilities
Cost of sales
Opening stock + purchase - closing stock
