THEME 2 FORMULAS Flashcards
net cash flow
total inflows - total outflows
sales volume
total number of units sold over a period of time
sales revenue
number of units sold x unit price
total variable costs
number of units sold x variable costs per unit
total costs
fixed costs + variable costs
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit x number sold
break even
fixed costs / contribution
variance
actual - budget
gross profit
sales revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit +/- finance costs
gross profit margin
(gross profit / sales revenue) x 100
operating profit margin
(operating profit / sales revenue) x 100
net profit margin
(net profit / sales revenue) x100
current ratio
current assets / current liabilities
acid test ratio
(current assets - stock) / current liabilities
productivity (labour)
output per period / number of employees
capacity utilisation
(actual level of output / maximum possible output) x 100
