All the calculations I need to know! Flashcards
Formula for revenue?
Price x units sold
Total variable costs?
TVC= variable cost per unit x units sold
Total costs?
TC = Fixed costs + variable costs
Profit ( two formulas)?
Total revenue - total costs
OR
Total contribution - Fixed costs
Market capitalisation?
Current share price x number of shares sold
Expected value of a decision with two possible outcomes, e.g. A & B
Net gain
(pay off of A x probability of A) + (pay-off of B x probability of B)
Net gain= Expected value - initial cost of investment
Market growth % ?
(change in size of market over period / original size of market) x 100
Market share %?
(Sales of one product/ brand/ business / Total sales in market) x 100
Added value?
sales rev- costs of bought-in goods & services
Labour productivity?
Output over time period/ number of employees.
Unit costs?
Total costs/ number of units
Capacity utilisation?
(Actual output/ maximum possible output) x 100
Return on investment?
(Profit from investment / cost of investment) x 100
Gross profit?
Revenue -costs of sales
Operating profit?
Gross profit - operating expenses
Profit for the year?
Operating profit + profit from other activities - net finance costs - tax
Gross profit margin?
(Gross profit/ revenue) x 100
Operating profit margin?
(Operating profit/ rev) x 100
Profit for the year margin?
(Profit for the year/ rev) x 100
Variance?
Budgeted figure - actual figure
Contribution per unit?
CPU= Selling price - variable costs
Total contribution?
Contribution per unit x units sold
OR
Total revenue - Total variable costs
Break even?
Fixed costs / contribution per unit
Margin of safety?
Actual level of output - Break even level of output
Labour turnover?
(Number of staff leaving / number of staff employed) x 100
Employee retention rate for a particular time period?
(Number of employees who remained/ number of employees at the start) x 100
Employee costs as a % of turnover
(Employee costs/ turnover) x 100
Labour cost per unit?
Labour costs/ units of output
Return on capital employed %?
(Operating profit / Total equity + non-current liabilities) x 100
Current ratio?
Current assets / current liabilities
Gearing % ?
(Non current liabilities/ total equity +non current liabilities) 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
How to calculate working capital?
Current assets- current liabilities
Net cash flow?
Inflows - outflows
