ALL Equations Flashcards
ROI formula
(ROI / Cost of investment) X 100
Percentage change in profit formula
(Current year’s profit - previous year’s profit) / previous year’s profit) X 100
Gross profit formula
Gross profit = sales revenues - cost of sales
Operating profit formula
Operating profit = gross profit - operating expenses
Profit for the year formula
Profit for the year = operating profit - net finance costs - tax
Operating profit margin formula
(Operating profit / sales revenue) X 100
Net profit margin
(Net profit / sales revenue) X 100
gross profit margin
(Gross profit)
——————– X100
sales revenue
contribution per unit
selling price per unit - variable cost per unit
total contribution formula
total revenue - TVC/contribution per unit X num of units sold
OR
total revenue - total variable costs
Break even output formula
Fixed costs/contribution per unit(sp-vc)
margin of safety formula
(actual output - break even output) / actual X100
opening balance
same as closing balance of previous
amount of money at start
0 for new
closing balance
net cash flow + opening balance
net cash flow
total inflow - total outflow
total outflow
add up all payments made
total inflows
add up all the cash recieved
revenue
selling price X number of units sold
total variable costs
variable cost(per unit) X num of units sold
TC
FC + TVC
profit
total revenue - total costs
OR
total contribution -fixed costs
market capitalisation
number of issued shares
X
current share price
market growth
change in the size of a market
————————————————- X100
original size of the market
market share
sales of one product/brand,/business
————————————————–X100
total sales in the market
net gain
expected value - initial cost of decision
added value
sales revenue - costs of bought in goods and services
labour productivity
number of employees
Unit costs
Total costs
——————————
Number of units of output
Capacity utilisation (%)
Actual output
————————————x 100
Maximum possible output
Variance
Budgeted figure - actual figure
Profit for year margin (%)
Profit for year
——————-X100
Revenue
Labour turnover (%)
Number of staff leaving
—————————————X100
Number of staff employed by the business
Employee retention rate (%) for a particular time period
Number of employees who remained with the business for the whole period of time
—————————————————-X100
Number of employees at start of the time period
Employee costs as percentage of turnover
Employee costs
———————× 100
Turnover
Labour cost per unit
Labour costs
——————
Units of output
Return on capital employed (ROCE)(%)
Operating profit
———————— X100
Total equity + non-current liabilities
Where total equity + non-current liabilities = capital employed
Average rate of return (%)
Average annual return (£)
————————————X100
Initial cost of project (E)
Payables days
Payables
————— X365
Cost of sales
Receivables days
Receivables
—————X365
Revenue
