Personal and Business finance equations

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  • Created by: Homer180
  • Created on: 13-07-18 12:09
Net Cash Flow
Total cash inflows - Total cash outflow
1 of 30
Closing balance
(Opening balance + Inflows) - Outflows
2 of 30
Total revenue
Price * Quantity
3 of 30
Total costs
Fixed costs + variable costs
4 of 30
Profit
Total revenue - total costs
5 of 30
Total contribution
Sales revenue - total variable costs
6 of 30
Unit contribution
Selling price per unit - variable cost per unit.
7 of 30
Profit (using contribution)
Selling price * margin of safety.
8 of 30
Break Even
Total revenue = Total costs
9 of 30
Revenue
Unit price * Quantity sold
10 of 30
Gross Profit
Revenue - cost of goods sold (Cost of sales)
11 of 30
Cost of goods sold (cost of sales)
(Opening inventory(stock) + Purchases)- closing stock
12 of 30
Profit/Loss
Gross profit - expenses (+other income)
13 of 30
Net book value
cost - depreciation
14 of 30
Net Current Assets
Current Assets - Current Liabilities
15 of 30
Net Assets
non current assets + net current assets - long term liabilities
16 of 30
Capital employed
opening capital + Profit for the year.
17 of 30
Balance sheet
Nets Assets = Capital emplyed
18 of 30
Gross profit margin
Gross profit / Revenue *100
19 of 30
Mark up
Gross Profit / Cost of Sales *100
20 of 30
Straight Line depreciation
(historic value - residual value) / expected life
21 of 30
Net profit margin
Profit / Revenue *100
22 of 30
Return on Capital employed
Profit / Capital employed *100
23 of 30
Current ratio
Current Assets/Current liabilities
24 of 30
Liquid Capital ratio (acid test ratio)
(Current assets - Inventory) / Current liabilities.
25 of 30
Trade receivable days
Trade receivables / credit sales *365
26 of 30
Inventory turnover
Average inventories/cost of sales * 365
27 of 30
Average inventory
Opening inventory+closing inventory /2
28 of 30
Trade payables
trade payables/credit purchases *365
29 of 30
Reducing line depreciation
net book value * depreciation level
30 of 30

Other cards in this set

Card 2

Front

Closing balance

Back

(Opening balance + Inflows) - Outflows

Card 3

Front

Total revenue

Back

Preview of the front of card 3

Card 4

Front

Total costs

Back

Preview of the front of card 4

Card 5

Front

Profit

Back

Preview of the front of card 5
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