FINANCE

TOTAL COSTS ($)
TFC + TVC
1 of 39
TOTAL REVENUE ($)
P x Q ( or TC)
2 of 39
CONTRIBUTION ($ per unit)
Price per unit - VC per unit
3 of 39
TOTAL CONTRIBUTION ($)
TR - TVC or CONTRIBUTION per unit x NO. UNITS SOLD
4 of 39
PROFIT ($)
Total CONTRIBUTION - TFC or TR - TC
5 of 39
Margin of Safety
CURRENT OUTPUT - BREAK EVEN OUTPUT
6 of 39
BREAK-EVEN QUANTITY
FC / CONTRIBUTION per unit
7 of 39
TARGET PROFIT OUTPUT
FC + TARGET PROFIT / CONTRIBUTION per unit
8 of 39
BREAK-EVEN REVENUE
FC / CONTRIBUTION per unit x P per unit
9 of 39
GROSS PROFIT
SALES REVENUE - COSTS OF SALE
10 of 39
COSTS OF SALE
Opening stock + purchases - closing stock
11 of 39
NET PROFIT before interest and tax
Gross Profit - Expenses
12 of 39
NET PROFIT before tax
NET PROFIT before interest and tax - interest
13 of 39
NET PROFIT after interest and tax
NET PROFIT before tax - corporation tax
14 of 39
Retained Profit
NET PROFIT after interest and tax - dividends
15 of 39
WORKING CAPITAL
TOTAL current assets - TOTAL current liabilities
16 of 39
TOTAL ASSETS - CURRENT LIABILITIES
(FIXED assets + CURRENT assets) - CURRENT liabilities or FIXED assets - working capital
17 of 39
NET ASSETS
(TOTAL assets - CURRENT liabilities) - long term liabilities
18 of 39
EQUITY
Share Capital + Retained Profit
19 of 39
Net Assets
Equity
20 of 39
Annuel Depreciation (HL)
Original Cost - Residual Value / expected useful life of asset
21 of 39
Net Book Value Year 1 (HL)
Cost of original asset - (cost of original asset x rate of depreciation (%))
22 of 39
Depreciation Rate (HL)
1 - root (residual value / cost of fixed asset)
23 of 39
GPM
Gross Profit / Sales Revenue x 100
24 of 39
NPM
Net Profit / Sales Revenue x 100
25 of 39
Capital Employed
long term liabilities + share capital + retained profit
26 of 39
ROCE
Net Profit (before interest and tax) / capital employed x 100
27 of 39
Current Ratio
Current assets / Current liabilities
28 of 39
Acid Test Ratio
Current Assets - Stock / Current Liabilities
29 of 39
Stock Turnover Ratio (no. times)
Costs of Goods Sold / Average Stock
30 of 39
Stock Turnover Ratio (no. days)
Average Stock / Costs of Goods Sold x 365
31 of 39
Debtor Days Ratio (no. days)
debtors / total sales revenue x 365
32 of 39
Creditor Days Ratio (no. days)
creditors / costs of goods sold x 365
33 of 39
Gearing Ratio
loan capital / capital employed x 100
34 of 39
Net Cash Flow
cash inflow - cash outflow
35 of 39
Payback Period (years)
initial investment cost / annual cash flow from investment
36 of 39
Payback Period (months)
Extra cash inflow required / Annual cash flow in no. years x 12 months
37 of 39
Average Rate of Return (ARR)
(total revenue - capital cost / years of usage) /capital costs x 100
38 of 39
HL Net Present Value (NPV)
total present value - original costs
39 of 39

Other cards in this set

Card 2

Front

P x Q ( or TC)

Back

TOTAL REVENUE ($)

Card 3

Front

Price per unit - VC per unit

Back

Preview of the back of card 3

Card 4

Front

TR - TVC or CONTRIBUTION per unit x NO. UNITS SOLD

Back

Preview of the back of card 4

Card 5

Front

Total CONTRIBUTION - TFC or TR - TC

Back

Preview of the back of card 5
View more cards

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