Formulas

Cards (19)

Average rate of return
Average annual profit: (total profit /no. of years) x100 / ( cost of investment )
Gross profit  
sales revenue - cost of sales
Gross profit margin  
Gross profit/ Sales revenue X100
Operating profit  
Gross profit - overheads
Net profit  
Gross profit - overheads, tax and interest
Net profit margin  
Net profit/ sales revenue X100
Net current assets  
Total current assets - Total current liabilities
Net assets  
Non current assets + net current assets - non current liabilities
Total equity  
Value of net assets
Market share 
Sales of one product or brand or business/ total sales of market as a whole X100
Market size  
Total volume of sales of a product or total value of sales of a product
Total costs 
Total fixed costs + total variable costs
Revenue  
Selling price per unit X quantity sold
Profit  
Revenue - total costs
Average Unit cost 
total costs / output
Net cash flow  
Total cash inflow - total cash outflow
Opening balance  
Closing balance of previous period
Closing balance  
Opening balance + net cash flow
Break even  
When total revenue = total costs