Break-even point
fixed costs / contribution per unit
Contribution per unit
selling price per unit - variable cost per unit
Total Contribution
Sales Revenue - Total Variable Costs
Total Variable costs
Variable cost per unit x Quantity sold
Gross Profit
Sales - Cost of Goods Sold (cogs)
Cost of Goods Sold
Opening Inventory + Purchases - Closing Inventory
Net Profit
Gross profit - Expenses + Income
Net current Assets
Current Assets - Current Liabilities
Net Assets
All Assets - All Liabilities
Capital employed
Capital+ Profit - Drawings
Straight-line depreciation
(Original Cost - Residual (scrap) Value) / Number of years
Reducing balance depreciation
(Net book value - residual value) x % to depreciate
Net book value
Original cost of asset - Accumulated depreciation
Gross Profit Margin
Gross Profit / Sales x 100
Gross Profit Mark-up
Gross Profit / COGS x 100
Net Profit Margin
Net Profit / Sales x 100
ROCE- return on capital employed
Profit before interest and tax / Capital Employed x 100
Current Ratio
Current Assets / Current Liabilities
Acid Test Ratio
(Current Assets - Inventory) / Current Liabilities
Inventory Turnover
Average Inventory / COGS × 365
Average Inventory
(opening inventory + closing inventory) / 2
Receivable Days
Trade Receivables / Credit Sales x 365
Payable days
Trade Payables / Credit Purchases x 365
