Finance Formulae
- Created by: Howwise
- Created on: 16-11-21 09:41
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- Formulae Finance
- Revenue, cost, profit and loss
- Revenue = Price x quantity
- Total cost = (Total) Variable Cost + ( Total) Fixed Cost
- (Total) Variable Cost = Variable Cost per unit x Quantity
- Variable Cost (per unit) = Total Variable Cost / Quantity
- (Total) fixed cost = sum of all fixed cost
- Profit / loss = Total Revenue- Total Cost
- Gross Profit = Total Revenue – Cost of Sales
- Gross profit margin = gross profit/ Total Revenue X 100
- Net profit = Total Revenue – Cost of sales - expenses
- Net profit margin = Net profit / Total Revenue X 100
- Average Rate of Return
- Total profit from the investment Total income received from an investment over a given period of time – cost of the investment Average profit from the investment Total profit from the investment/ Number of years Average rate of return Average profit from the investment / Cost of the investment x 100
- Break even
- Breakeven = Fixed Cost / Selling price - Variable Cost
- Contribution per unit - Selling price - Variable Cost
- Cash Flow
- Net Cash flow = Total inflow - Total outflow
- Closing balance = Net cash flow + opening balance
- Revenue, cost, profit and loss
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