ALL EQUATIONS + Financial Ratios Flashcards
Revenue Equation
Price per unit X Quantity sold
Profit Equation
- ) Total revenue - Total costs
2. ) Total contribution - Fixed costs
Market Capitalisation
Number issued shares
X
Current share price
Expected Value of a Decision with 2 Possible Outcomes EQUATION
A&B =
[Pay-off of A x Probability of A]
+
[Pay-off of B x Probability of B]
Net Gain Equation
Expected value - Initial cost of decision
Labour cost per unit Equation
Labour costs / Units of Output
Employee Costs as % of Turnover Equation
Employee costs / Turnover (x100)
Retention Rate Equation
No. employees who remained for whole period
/
No. employee at start of time period
(x100)
Labour Turnover Equation
Number of staff leaving
/
Number of staff employed
(x100)
Margin of safety Equation
Actual level of Output
Breakeven level of Output
//
Forecast Sales
-
Breakeven point
Total Contribution Equation
Contribution per unit
X
Unit Sold
- OR -
Total Revenue - Total Variable Costs
Contribution per unit Equation
Selling price - Variable costs per unit
Break-even Output Equation
Fixed costs
/
Contribution per unit
Variance Equation
Budgeted figure - Actual figure
Profit for year margin Equation
or
Net Profit Margin Equation
Net Profit
/
Sales
(x100)
Operating Profit Margin Equation
Operating Profit
/
Revenue
(x100)
Gross Profit Margin Equation
Gross Profit
/
Revenue
(x100)
Profit for Year Equation
Operating Profit + Profit from others - Net Finance Costs - Tax
Operating Profit Equation
Gross Profit - Operating Expenses
Gross Profit Equation
Revenue - Cost of Sales
Return on Investment Equation
Operating profit
/
Capital Invested
(x100)
Capacity Utilisation Equation
Actual Output
/
Max Possible Output
(x100)
Unit Costs (Average Costs) Equation
Total Costs
/
Number of Units of Output
Labour Productivity Equation
Output Over Time Period
/
Number of Employees
