theme 2 Flashcards
(29 cards)
profit
revenue - costs
revenue
quantity x price
sales volume
price
total costs
fixed costs + variable costs
total variable costs
Variable cost per unit x quantity
Gross profit
profit
sales revenue - cost of sales
Opperating profit
profit
gross profit - expenses
NET profit
profit
operating profit - tax/interest
GPM
profit
GP
———— x100
revenue
OPM
profit
OP
———– x100
revenue
NET Profit margin
profit
NET profit
————— x100
revenue
Break even
break even
contribution
contribution
break even
selling price - variable cost per unit
margin of safety
break even
actual sales - break even output of sales
profit
break even
margin of safety x contribution
total contribution
breakeven
contribution per unit x output
NET cashflow
cashflow
inflow - outflow
opening balance
cashflow
= closing balance from previous year
closing balance
cashflow
opening balance + NET cashflow
acid test ratio
liquidity
current liabilities
current ratio
liquidity
current liabilities
working capital
liquididty
current assests - current liabilities
Net assets
liquidity
(non current assest + current assests ) - (non current liabilitis + current liabilities )
total equity
liquidity
share capital + retained profits
