All Formulae Flashcards
Revenue
Price x units sold
Variable costs
Cost per unit x units sold
Total costs
Fixed costs + variable costs
Profit
Revenue - total costs
Profit (contribution)
Total contribution - fixed costs
Market capitalisation
Shares issued x current share price
Net gain
Expected value - initial cost
Expected value
(Pay off A x probability) + (Pay off B x probability)
Market growth
Change in size over period/original size x 100
Market share
Sales of product/brand
/ total sales in market x100
Added value
Revenue- costs of bought in goods and
Labour productivity
Output over period / number of employees
Unit costs
Total costs / output
Capacity utilisation
Actual output / maximum output x100
Return on investment
Profit / cost x 100
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating expenses
Profit for year
Operating + profit from other activities - net finance costs - tax
Profit margins
Profit / revenue x 100
Variance
Budgeted figure - actual figure
Contribution per unit
Price - variable costs
Total contribution
Contribution x units sold
Total revenue - total variable costs
Break even output
Fixed costs / contribution per unit
Margin of safety
Actual output - break even output
Labour turnover
No. staff leaving / no. Staff employed x 100
Employee costs as a % of turnover
Employee costs / turnover x100
Labour costs per unit
Labour costs / output
Capital employed
Total equity + non current liabilities
ROCE
Operating profit / capital employed x 100
Current ratio
Current assets / current liabilities
Gearing
Non current liabilities / capital employed x 100
Payables days
Payables / cost of sales x 365
Receivables days
Receivables / revenue x 365
Inventory turnover
Cost of sales / average inventories held
Average rate of return
Average annual return / initial cost of project x 100
