Equations in TUTA

Profit

Sales Revenue – Resource Costs

Profit Margin

Profit ÷ Sales Revenue

ROA

EBIT ÷ Total Assets

ROE

Net Profit ÷ Shareholder Equity

COGS

Beginning Inventory + Purchases – Ending Inventory

Depreciation (SL)

Asset Cost ÷ Useful Life

Contribution Margin %

(Sales – Variable Costs) ÷ Sales

Contribution Pricing

Variable Cost ÷ (1 – Target Margin)

Payback Period

Investment ÷ Annual Benefit

EBIT

Revenue – (Materials + Labor + Salaries + Rent + Depreciation)

Break-Even Units

Fixed Costs ÷ (Sales Price – Variable Cost)

Gross Profit Margin

(Revenue – Variable Costs) ÷ Revenue

Contribution per Unit

Sales Price – Variable Cost

Assets

Liabilities + Equity

Inventory Adjustment

Closing Inventory – Opening Inventory

Depreciation (Monthly)

Annual Depreciation ÷ 12

Cost Impact of Pivot

Old Cost – New Cost

Runway Extension

Savings ÷ Monthly Burn Rate

ROI

(Gain from Investment – Cost of Investment) ÷ Cost of Investment

Space Efficiency

(Parts stored ÷ Floor area used)

Operator Footsteps Reduction

Old distance – New distance

Equity Ratio

Shareholder Equity ÷ Total Assets

Current Ratio

Current Assets ÷ (Payables + Short-term Loans)

Quick Ratio

(Current Assets – Inventory) ÷ (Payables + Short-term Loans)

Material OBR

Indirect Material Costs ÷ Direct Material Costs

Manufacturing OBR

Indirect Manufacturing Costs ÷ Direct Manufacturing Costs

SG&A OBR

SG&A Costs ÷ Total Factory Costs

Factory Price

Direct Costs + Allocated Indirect Costs

Sales Price

Total Cost ÷ (1 – Profit Margin)

Contribution Costing Price

Direct Costs ÷ (1 – Contribution Margin)

Payback Period (Acquisition)

Acquisition Price ÷ Annual Profit

Profit Impact of Discount

If Profit Margin10%, a 5% discount reduces profit by ~50%

Diffusion Curve

Adoption % over time → S-shaped curve