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Couple things stick out from your formula. First thing is that "Backlinks + PageRank" doesn't really work because "Backlinks = PageRank".
How you format your content is critical, too. You've got title tags, header tags, emphasis tags (bold, italics), anchors, and so on - all things that aid in adding emphasis to your keywords. (But, if you go too far, you will start going back down in rankings).
There are a hundred or so different factors that go into ranking of a page. You've listed two (even though it looks like three). They are important and so much so that together they probably make up 50% or more of the equation. But there's still a lot more that goes into it.
If it were as easy as that, would there be so many SEO forums? Would there be so many heated debates about what is the most important? Would SEO be such a thriving industry?
Nope.
You've got a "start" on understanding it, but there's a long way to go.
G.
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