formulas Flashcards
(18 cards)
Sales Revenue
Sales Revenue = units sold x sales price
Cost of Sales
Opening Inventory + Purchases - Closing Inventory
Gross Profit
Sales Revenue - Cost of Sales
Net Profit
Net Profit = Gross Profit - Total Expenses (including operating expenses, interest, taxes, etc.
Depreciation
Cost of Asset - Salvage Value) / Useful Life of Asset
Gross Profit Margin
Gross Profit Margin = (Gross Profit / Sales Revenue) × 100
Net Profit Margin:
Net Profit Margin = (Net Profit / Sales Revenue) × 100
Mark Up
Mark Up = (Selling Price - Cost Price) / Cost Price × 100
Return on Capital Employed
(Net Profit / Capital Employed) × 100
. Current Ratio
Current Ratio = Current Assets / Current Liabilities
Liquid Capital Ratio
Liquid Capital Ratio = (Current Assets - Inventory) / Current Liabilities
Trade Receivable Days
Trade Receivable Days = (Trade Receivables / Sales Revenue) × 365
Inventory Turnover:
Inventory Turnover = Cost of Sales / Average Inventor
Trade Payable Days
Trade Payable Days = (Trade Payables / Cost of Sales) × 365
break even
fixed cost/ selling price - variable costs
net cash flow
Total cash inflow - total cash outflow
closing balance
net cash flow + opening balance
variable cost per unit
(total costs – fixed costs) / break-even quantity
