All Calculations Flashcards
Market Capitalisation =
Share Price (per share) x Number of Shares
Total Revenue =
Volume sold x Average Selling price
Price Elasticity of Demand (P.E.D) =
% Change in Price
Labour Productivity Formula =
Number of Employees at Work
Profit =
Total Sales Revenue - Total Costs
Income Elasticity of Demand (Y.E.D) =
% Change in Income
Capacity Utilisation Formula =
Actual Level of Output
————————————– x 100
Maximum Possible Output
Creditor Days =
Trade Payables
———————- x 365
Cost of Sales
Current Ratio =
Current Liabilities
Gearing Ratio (%) =
Long-term liabilities
—————————– x 100
Capital employment
Total Costs =
Fixed Costs + Variable Costs
Debtor Days =
Trade Debtors
——————— x 365
Revenues
Labour Turnover Formula =
Number of Employees Leaving During Period
—————————————————————— x 100
Average Number Employed During Period
Return on Capital Employed ( ROCE %) =
Operating Profit
————————– x 100
Capital Employed
Sales Growth (%) =
Sales this year - Sales last year
——————————————— x 100
Sales last year
Added Value =
Sales Revenue - Cost of Brought-In Goods and Services
Unit Cost =
Units Output
Return on Investment (%) =
Return on Investment (£)
———————————– x 100
Cost of Investment (£)
Percentage Chance in Profit =
Current Year’s Profit - Previous Year’s Profit
————————————————————– x 100
Previous Year’s Profit
Gross Profit =
Sales Revenue - Cost of Sales
Operating Profit =
Sales Revenue - Cost of Sales - Operating Profit
Profit for the Year =
Operating Profit + Other Profit - Net Finance Costs - Tax
Gross Profit Margin (%) =
Gross Profit
——————— x 100
Sales Revenue
Operating Profit Margin (%) =
Operating Profit
———————— x 100
Sales Revenue
Profit for the Year Margin (%) =
Profit for the Year
————————- x 100
Sales Revenue
Contribution Per Unit =
Selling Price Per Unit - Variable Cost Per Unit
Total Contribution =
Total Revenue - Total Variable Costs
Labour Cost Per Unit =
Units of Outputs
Employee Costs as a % of Turnover =
Employee Costs
———————— x 100
Sales Turnover
Labour Retention (%) =
Number of Staff Employed at End of Period - Number of Leavers
————————————————————————- x 100
Number of Staff Employed at End of Period
Stock Turnover =
Average Stock Held
