Formulas Flashcards
Net cash flow
Cash inflows - Cash outflows
Opening balance
Same as previous closing balance
Closing balance
Net cash flow + opening balance
Sales revenue
Quantity x selling price
Sales volume
Revenue / selling price
Total costs
Fixed + variable costs
Contribution per unit
Average selling price - variable costs per units
Break-even output
Fixed costs / contribution per unit
Total contribution
Contribution x output
Variance %
Variance £ / Forecast £
Gross profit
Revenue - cost of sale (variable costs)
Operating profit
Gross profit - overheads (fixed costs)
Net profit
Operating profit - corporation tax
Current ratio
Current assets / current liabilites
Acid test ratio
Current assets - inventories / current liabilities
Capacity utilisation
(Current output / maximum output) x 100
Gearing ratio
(Non-current liabilities/capital employed) x 100
ROCE
(operating profit/capital employed) x 100
Capital employed
Total equity + non-current liabilities
ARR
(Annual average profit/initial cost) X 100
NPV
ARR X discounted factor
Number of months needed to pay back in simple payback
(The remaining cost left to be repaid divided by the profit made that year) x 12
4 year moving average
Add the year before and year. Then do the same for the next 4 year moving average. Add both numbers up and divide by 8
3 year moving average
Add the year before and year after and divide by three 3
