All Equations Flashcards
total costs
fixed costs + variable costs
unit cost
total cost/output
average cost
(fixed costs + variable costs)/output
average revenue
total revenue/number of sales
contribution per unit
price - variable costs
profit
total contribution - fixed costs
break even
fixed costs / contribution per unit
margin of safety
Actual level of output - breakeven level of output
payback
amount owed/net cash flow for following year
ARR
/
gross profit
sales revenue - cost of sales
operating profit
gross profit - expenses
profit before tax
operating profit - finance costs
profit for the year
net profit - tax and dividends
cost of sales
opening inventory + purchases in this year - closing inventory
straight line depreciation
initial cost - (residual value)/life of asset)
current ratio
current assets/current liabilities
acid test ratio
(current assets - inventory (stock))/current liabilities
gearing
non current liabilities/capital employed x 100
debt to equity ratio
debt/equity x 100
interest cover
operating profit/interest payable
non-current asset turnover
revenue/non current assets
stock (inventory) turnover
cost of stock/average stock
debtor days (trade receivables)
trade receivables/revenue x 365
creditor days (trade payables)
trade payables/purchases x 365
gross profit margin
gross profit/sales x 100
net profit margin
net profit/sales x 100
ROCE (return on capital employed)
profit/capital employed x 100
ROE (return on equity)
profit for the year/shareholders equity
dividend per share
total dividends paid/number of shares issued
dividend yield
dividend per share/market price of share x 100
earnings per share
profit for the year/number of shares issued
price earnings ratio
market price of share/earnings per share
labour turnover
no. of employees leaving during the year/average number employed during year x 100
absenteeism
total days absent in month/total available working in month x 100
lateness
(total number of late arrivals x 100)/total number of scheduled arrivals
productivity
output (week/month/year)/average number of employees
Vrooms expectancy theory
force = (valance x expectancy)
standard deviation
/
market share
sales value or volume for the individual business/shares value or volume for whole market
market growth
change in total sales by value of volume/original sales value or volume x 100
price elasticity of demand
percentage change in demand/percentage change in price
income elasticity of demand
percentage change in demand/percentage change in income
cross elasticity of demand
percentage change in the demand for A/percentage change in the price of B
advertising elasticity of demand
percentage Change in demand/percentage change in advertising spending
adding value
selling price - CPU (contribution per unit)
PERT (Programme Evaluation Review Technique)
(optimistic time +4) x likely time + (pessimistic time/6)
productivity
number of goods produced/average number of employees
capacity utilisation
actual or current level of output/max possible output x 100
average stock level
(max stock level + min stock level)/2
wastage/reject rates
number of rejects produced/total number of products produced x 100
percentage change
(change/original) x 100
