All the calculations I need to know!

Question 1

Formula for revenue?

Answer 1

Price x units sold

Question 2

Total variable costs?

Answer 2

TVC= variable cost per unit x units sold

Question 3

Total costs?

Answer 3

TC = Fixed costs + variable costs

Question 4

Profit ( two formulas)?

Answer 4

Total revenue - total costs

OR

Total contribution - Fixed costs

Question 5

Market capitalisation?

Answer 5

Current share price x number of shares sold

Question 6

Expected value of a decision with two possible outcomes, e.g. A & B

Net gain

Answer 6

(pay off of A x probability of A) + (pay-off of B x probability of B)

Net gain= Expected value - initial cost of investment

Question 7

Market growth % ?

Answer 7

(change in size of market over period / original size of market) x 100

Question 8

Market share %?

Answer 8

(Sales of one product/ brand/ business / Total sales in market) x 100

Question 9

Added value?

Answer 9

sales rev- costs of bought-in goods & services

Question 10

Labour productivity?

Answer 10

Output over time period/ number of employees.

Question 11

Unit costs?

Answer 11

Total costs/ number of units

Question 12

Capacity utilisation?

Answer 12

(Actual output/ maximum possible output) x 100

Question 13

Return on investment?

Answer 13

(Profit from investment / cost of investment) x 100

Question 14

Gross profit?

Answer 14

Revenue -costs of sales

Question 15

Operating profit?

Answer 15

Gross profit - operating expenses

Question 16

Profit for the year?

Answer 16

Operating profit + profit from other activities - net finance costs - tax

Question 17

Gross profit margin?

Answer 17

(Gross profit/ revenue) x 100

Question 18

Operating profit margin?

Answer 18

(Operating profit/ rev) x 100

Question 19

Profit for the year margin?

Answer 19

(Profit for the year/ rev) x 100

Question 20

Variance?

Answer 20

Budgeted figure - actual figure

Question 21

Contribution per unit?

Answer 21

CPU= Selling price - variable costs

Question 22

Total contribution?

Answer 22

Contribution per unit x units sold

OR

Total revenue - Total variable costs

Question 23

Break even?

Answer 23

Fixed costs / contribution per unit

Question 24

Margin of safety?

Answer 24

Actual level of output - Break even level of output

Question 25

Labour turnover?

Answer 25

(Number of staff leaving / number of staff employed) x 100

Question 26

Employee retention rate for a particular time period?

Answer 26

(Number of employees who remained/ number of employees at the start) x 100

Question 27

Employee costs as a % of turnover

Answer 27

(Employee costs/ turnover) x 100

Question 28

Labour cost per unit?

Answer 28

Labour costs/ units of output

Question 29

Return on capital employed %?

Answer 29

(Operating profit / Total equity + non-current liabilities) x 100

Question 30

Current ratio?

Answer 30

Current assets / current liabilities

Question 31

Gearing % ?

Answer 31

(Non current liabilities/ total equity +non current liabilities) x 100

Question 32

Payables days?

Answer 32

(Payables/ cost of sales) x 365

Question 33

Receivables days?

Answer 33

(Receivables/ revenue) x 365

Question 34

Inventory turnover?

Answer 34

Cost of sales/ average inventories held

Question 35

Average rate of return %?

Answer 35

(Average annual return / initial cost of project) x 100

Question 36

How to calculate working capital?

Answer 36

Current assets- current liabilities

Question 37

Net cash flow?

Answer 37

Inflows - outflows