Finance Formulae

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Revenue
quantity sold x selling price
1 of 28
Cost of goods sold
opening inventory + purchases - closing inventory
2 of 28
Gross profit
revenue - cost of goods sold
3 of 28
Net profit
gross profit - expenses
4 of 28
Net book value
cost of asset - depreciation
5 of 28
Break even point
where Total Revenue and Total Costs meet
6 of 28
Contribution per unit
selling price - variable costs per unit
7 of 28
Total contribution
contribution per unit x number of units sold
8 of 28
Margin of safety
actual sales - break even
9 of 28
Left of BE triangle
loss
10 of 28
Right of BE triangle
profit
11 of 28
Total inflows
individual inflows added together
12 of 28
Total outflows
individual outflows added together
13 of 28
Net cash flow
inflows - outflows
14 of 28
Closing bank balance
opening back balance + net cash flow
15 of 28
Opening bank balance
closing bank balance from previous month
16 of 28
Net current assets/Working capital
current assets - current liabilities
17 of 28
Net asset
non current assets + net current assets - non current liabilities
18 of 28
Gross profit margin
gross profit / revenue x 100
19 of 28
Mark up
gross profit / cost of sales x 100
20 of 28
Net profit/Profit margin
net profit / revenue x 100
21 of 28
Return on capital employed
(net)profit / capital employed x 100
22 of 28
Current ratio
current assets / current liabilities
23 of 28
Liquid capital ratio
current assets - current liabilities
24 of 28
Trade receivable days
trade receivables / credit sales x 365
25 of 28
Trade payable days
trade payables / credit purchases x 365
26 of 28
Average inventory held
opening +closing / 2
27 of 28
Inventory turnover
average inventory held / cost of sales x 365
28 of 28

Other cards in this set

Card 2

Front

Cost of goods sold

Back

opening inventory + purchases - closing inventory

Card 3

Front

Gross profit

Back

Preview of the front of card 3

Card 4

Front

Net profit

Back

Preview of the front of card 4

Card 5

Front

Net book value

Back

Preview of the front of card 5
View more cards

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