Theme 2 - Formulas

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Net cash flow
Total inflows - Total outflows
1 of 25
Closing bank balance
Opening bank balance + Net cash flow
2 of 25
Total costs
Fixed costs + Variable costs
3 of 25
Unit costs
Total costs / Output
4 of 25
Sales revenue
Price * Quantity
5 of 25
Total variable costs
variable costs per unit * output
6 of 25
Total contribution
Sales revenue - Total Variable costs
7 of 25
Contribution per unit
Price - Variable costs per unit
8 of 25
Profit
Contribution - Fixed costs
9 of 25
Profit
Sales revenue - Total costs
10 of 25
Break even
Fixed costs / Contribution per unit
11 of 25
Margin of safety
Current sales - Break even sales
12 of 25
Variance
Actual figure - Budgeted figure
13 of 25
Gross profit
Sales revenue - Cost of sales
14 of 25
Operating profit
Gross profit - Fixed costs (overheads)
15 of 25
Net profit (profit for the year)
Operating profit - Financing and tax
16 of 25
Gross profit margin
(Gross Profit / Sales revenue) *100
17 of 25
Operating profit margin
(Operating Profit / Sales revenue) *100
18 of 25
Net profit margin
(Net Profit / Sales revenue) *100
19 of 25
Current ratio
(Current assets / Current liabilities) : 1
20 of 25
Acid test ratio
(Current assets - Inventory / Current liabilities) : 1
21 of 25
Productivity
Output / Number of workers
22 of 25
Capacity utilisation
(Current output / Maximum output) *100
23 of 25
% change in price
( (New price - Old price) / Old price) *100
24 of 25
Consumer price index (CPI)
(New price / Price of base year) *100
25 of 25

Other cards in this set

Card 2

Front

Opening bank balance + Net cash flow

Back

Closing bank balance

Card 3

Front

Fixed costs + Variable costs

Back

Preview of the back of card 3

Card 4

Front

Total costs / Output

Back

Preview of the back of card 4

Card 5

Front

Price * Quantity

Back

Preview of the back of card 5
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