Business Formulas Flashcards
(19 cards)
Net Cash Flow
Total Inflows - Total Outflows
Sales Volume
Total number of units sold over a period of time
Sales Revenue
Number of Units Sold x Unit Price
Total Variable Costs
Number of Units Sold x Variable Cost per Unit
Total Costs
Variable Costs + Fixed Costs
Contribution per Unit
Selling Price per Unit - Variable cost per unit
Total Contribution
Contribution per unit x number of units sold
Break-even
Fixed costs / selling price - variables
Variance
Actual - budget
Gross Profit
Sales revenue - cost of sales
Operating Profit
Gross profit - overheads
Net Profit
Operating Profit - finance costs
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 / sales revenue) x 100
Current Ratio
Current Assets - Current Liabilities
Acid Test Ratio
(Current assets - stock) / current liabilities
Productivity (labour)
Output per period (units) / number of employees in that period
Capacity Utilisation
(Actual level of output / maximum possible output) x100
