A Level Business Flashcards

Flashcards on Financial Ratios, Break-Even Analysis, and Efficiency Ratios

Revenue

Selling Price per Unit x Quantity Sold

Total Costs

Fixed Costs + (Variable Cost per Unit x Quantity Made)

Profit

Total Revenue - Total Costs

Gross Profit

Revenue - Cost of Sales

Gross Profit Margin (%)

(Gross Profit / Revenue) x 100

Operating Profit

Gross Profit - Operating Expenses

Operating Profit Margin (%)

(Operating Profit / Revenue) x 100

Net Profit Margin (%)

(Net Profit / Revenue) x 100

Contribution per Unit

Selling Price - Variable Costs per Unit

Total Contribution

Contribution per Unit x Quantity Sold

Break-Even Output

Fixed Costs / Contribution per Unit

Margin of Safety

Actual Output - Break-Even Output

Net Cash Flow

Cash Inflows - Cash Outflows

Closing Balance

Opening Balance + Net Cash Flow

Current Ratio

Current Assets / Current Liabilities

Acid Test Ratio (Quick Ratio)

(Current Assets - Inventory) / Current Liabilities

Labour Productivity

Output per Time Period / Number of Employees

Employee Retention Rate (%)

(Number of Employees Staying / Total Number of Employees) x 100

Employee Turnover Rate (%)

(Number of Leavers / Average Number Employed) x 100

Average Rate of Return (ARR)

(Average Annual Return / Initial Investment) x 100