Theme 2

• sales volume

  number of units x period of time
• sales revenue

  price x quantity
• total costs

  fixed costs + variable costs
• net present value

  net cash flow x discount factor
• Annual recurring revenue

  average net cash flow for lifetime of product/project cost (initial investment amount)
• net profit

  operating profit - interest/tax
• profit

  total revenue - total costs
• net profit margin

  net profit/sales revenue x 100
• current ratio

  current assets/current liabilities
• acid test ratio

  current assets - stock/current liabilities
• capital productivity

  output per time period/number of machines
• capacity utilisation

  actual output/maximum output x 100