Total Costs Variable Costs + Fixed Costs
Sales Revenue Quantity Sold * Selling Price
Gross Profit Margin (Gross Profit / Sales Revenue)*100
Net Profit Margin Net profit before interest and tax / Sales revenue x 100
Return on Capital Employed (ROCE) Net profit before interest and tax / Capital employed
Current Ratio Current assets / Current liabilities
Acid Test Ratio/Quick Ratio Current assets less stocks / Current Liabilities
Payback Period Cost of Investment / Contribution per Month (Selling price - VC)
Average Rate of Return • (Total returns - Capital Cost) / years of use/capital cost * 100
• Average annual profit/Initial Investment Cost *100
Net Present Value • The sum of the present value - Cost of Investment
• NPV = All discounted values of future net cash flow added up - Cost of Investment
Cost of Sales (Opening stock + purchases - Closing Stock)
Percentage of Sales Rev can also be given.
Depreciation Cost - Scrap Value / T. Years