Equations Flashcards
(32 cards)
Total costs
Fixed costs + variable costs (direct costs + indirect costs)
Unit costs
Total cost/output
Revenue
Price x quantity sold
Contribution per unit
Price - variable costs
Break even
Fixed costs/contribution per unit
Margin of safety
Actual sales - break even sales
ARR
annual average profit/cost of investment
Net cash flow
Total inflows - total outflows
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - expenses
Profit before tax
Operating profit - finance costs
Profit for the year (retained profit)
Net profit - tax and dividends
Net current assets (working capital)
Current assets - current liabilities
Net assets
Total assets- current liabilities- non current liabilities
Straight line depreciation
Initial cost - residual value/ life of asset
current ratio
Current assets /current liabilities
Acid test
Current assets - inventory/ current liabilities
gearing
(Non - current liabilities/ capital employed) X100
Debt to equity ratio
Debt/equity x100
Interest cover
Operating profit/ interest payable
Asset turnover
Revenue/non - current assets
Stock turnover
Cost of stock/average stock
Debtor days
Debtors/ revenue x365
Creditor days
Creditors/cost of sales x365
