Business equations Flashcards
Revenue/ sales/ turnover
Selling p/unit X Number of units sold
Variable costs
Variable Cost p/unit X Number of units sold
Total costs
Fixed costs + Variable costs
Profit (2)
Total rev - Total costs
Total - Fixed costs
Market capitalisation
Number of issued shares X current share price
Net gain
Expected value - initial cost of decision
Market growth (%)
Change in size of the market over a period / Original size of the market X 100
Market Share (%)
Sales of product/brand/business / Total sales in the market X 100
Added value
Sales rev - Cost of bought in goods and services
Labour productivity
output over a time period /Number of employees
Unit costs (av)
Total costs / Number of units of output
Capacity utilisation (%)
Actual output / maximum possible output X 100
Return on investment (%)
Profit from the investment / Cost of the investment X 100
Gross profit
Revenue - Cost of sales
Profit from operations
Gross profit - operating expenses
Profit for the year
Operating profit + Profit from other activities - Net finances costs - Tax
Gross profit margin (%)
Gross profit / revenue X 100
Profit from operations margin (%)
Operation profit / revenue X 100
Profit for year margin (%)
profit for year / revenue X 100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - Variable costs per unit
Total contribution
Contribution per unit X units sold
Total rev - total variable costs
Break even output
Fixed costs / contribution p/unit
Margin of safety
actual level of output - break even level of output
