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17 terms

Business Formulas

STUDY
PLAY
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