Business Calculations Flashcards
Market capitalisation
Number of shares issued x current share price
Net gain
Expected value - initial cost of decision
Market growth (%)
Change in the size of the market / original size of market
X 100
Market share (%)
Sales / total market sales
X 100
Added value
Sales revenue - cost of bought in goods/ services
Labour productivity
Output / number of employees
Profit the different way
Total contribution - fixed costs
Variable costs
Variable cost per unit x units sold
Expected value of a decision with two possible outcomes
(Pay off A x prob A)+(pay off B x prob B)
Unit/ average costs
Total costs / total output
Capacity utilisation (%)
Actual output / maximum possible output x 100
Return on investment (%)
Profit from the investment / cost of investment
X 100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - variable cost per unit
Break even output
Fixed costs / contribution per unit
Margin of safety
Actual level of output - break even output level
Labour turnover (%)
Number of leaving staff / number of staff employed
X 100
Employee costs as a % of turnover
Employee costs / turnover
X 100
Labour cost per unit
Labour cost / units of output
Return on capital employed (ROCE)(%)
Operating profit / capital employed
Capital employed
Total equity + non current liabilities
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 stock holding
Average rate of return (%)
Average annual return / initial cost of project
X 100
