formulae

• Revenue = Quantity x Selling Price
• Profit = Sales Revenue - Costs
• Total Costs = Variable Costs + Fixed Costs
• Gross Profit = Revenue - Cost of Sales
• Net Profit = Gross Profit - Expenses
• Working Capital (Net Current Assets) = Current assets - Current Liabilities
• Net Assets = Net Current Assets + Fixed Assets
• Gross Profit Margin = Gross Profit/Revenue x 100
• Net Profit Margin = Net Profit/Revenue x 100
• Current Ratio = Current Assets / Current Liabilities
• Liquid Capital Ratio = (Current Assets - Stock) / Current Liabilities
• Margin Safety = Number of Sales - break even point