Business Formulas

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Created by:

12goldfeldd1  on May 1, 2012

Subjects:

Business Studies

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Business Formulas

Break Even Output
Fixed Costs ÷ Contribution Per Unit
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Break Even Output Fixed Costs ÷ Contribution Per Unit
Contribution Selling Price − Variable Cost (Per Unit)
Gross Profit Sales Revenue − Costs Of Goods Sold
Costs Of Goods Sold (Opening Stock + Purchases) − Closing Stock
Net Profit Gross Profit − Expenses
Retained Profit Net Profit After Tax − Dividends Paid
Current Ratio Currents Assets ÷ Current Liabilities
Acid Test Ratio (Current Assets −Stock) ÷ Current Liabilities
Gross Profit Margin (Gross Profit ÷ Sales Revenue) × 100
Net Profit Margin (Net Profit ÷ Sales Revenue) × 100
Return On Capital Employed (Operating Profit ÷ Capital Employed) × 100
Capital Employed Shareholder's Funds +Long Term Liabilities
Working Capital Current Assets − Current Liabilities
Net Assets Fixed Assets + Working Capital
Shareholders' Funds Total Assets − Total Liabilities
Net Cash Flow Cash Inflow − Cash Outflow
Closing Bank Balance A + D

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12goldfeldd1