formulas

• net cash flow = inflows - outflows
• closing balance = opening balance + net cash flow
• cumulative flow = sum of all closing balances
• sales revenue = selling price x quantity
• total variable costs = variable cost per unit x quantity
• total costs = fixed costs + variable costs
• profit = total revenue - total costs
• break even output = fixed costs / contribution
• contribution per unit = selling price - variable costs
• total contribution = contribution per unit x quantity sold
• margin of safety = actual output - break even output
• profit = contribution - fixed costs
• budget variance = budget amount - actual amount
• gross profit = sales revenue - cost of sales
• gross profit margin = (gross profit / revenue) x100
• operating profit = gross profit - operating costs
• operating profit margin = (operating profit / revenue) x100
• net profit = operating profit - excess costs
• net profit margin = (net profit / revenue) x100
• capital employed = non current liabilities + equity
• current ratio = current assets/current liabilities
• acid test ratio = (current assets - inventory) / current liabilities
• market share = (sales by business / total market sales) x100
• percentage change = (difference/original) x100
• labour productivity = output per period / number of employees in period
• capacity utilisation = (actual output/maximum output) x100
• average rate of return = (net profit per year/cost) x100
• payback period = minus the yearly values from investment till positive then

  years + (amount needed / yearly amount) x12
• discounted cash flow = NPV = cash flow x discount factor = for each year = add all up and accept if positive
• decision trees = do for both success and failure = probability x expected value
• total float = LFT - EST - duration
• working capital = current assts - current liabilities
• free float = EST next task - EST this task - duration
• gearing ratio = (non current liabilities / capital employed) x100
• capital employed =

  • share capital + retained earnings + non current liabilities
  • total equity + non current liabilities
• return on capital employed = (operating profit / capital employed) x100
• labour productivity = total output / average number of employees
• labour turnover = (number leaving / number in post) x100
• labour retention = (number of staff staying / number in post) x100
• rate of absenteeism = (number of staff absent / total employed) x100