Formulae Flashcards
(32 cards)
Total costs
Fixed costs + variable costs.
Unit costs
Total cost/output
Revenue
Price x quantity sold
Contribution per unit
Selling price - variable costs
Break even
Fixed costs / contribution
Margin of safety
Actual sales - break even sales
ARR
(Average annual profit/cost of investment) x100
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 - total liabilities
Straight line depreciation
(Initial cost - residual value) / life of asset
Current ratio
Current assets / current liabilities
Acid test
(Current assets - stock) / current liabilities
Gearing
(Non current liabilities / capital employed) x100
Debt to equity ratio
(Debt / equity) x100
Interest cover
Operating profit / interest payable
Non-current asset turnover
Revenue / non-current assets
Stock turnover
Cost of stock / average stock
Debtor days
(Trade receivables / revenue) x365
Creditor days
(Trade payables / cost of sales) x365
