business formulae Flashcards
current ratio
current assets / current liabilities
liquid assets
current assets - inventories (stock)
acid test ratio
liquid assets / current liabilities
asset turnover
revenue / net assets
inventory turnover
cost of sales / average inventories held
market capitalisation
no. of issued shares x current share price
dividend yield
dividend per share (pence) / share price (pence) x 100
market growth
change in size of market over a period / original size of the market x 100
market share
sales of business / total sales in the market x 100
PED
% change in quantity demanded / % change in price
YED
% change in quantity demanded / % change in income
revenue (sales or turnover)
selling price per unit x number of units sold
total variable costs
V.C / unit x no. of units sold
contribution per unit
selling price - V.C per unit
total contribution
cont per unit x units sold
OR
total revenue - total variable costs
break even output
fixed costs / cont per unit
margin of safety
actual level out output - break even level of output
payabale days
payables / cost of sales x 365
receivable days
receivables / revenue x 365
current ratio
current assets / current liabilities
acid test ratio
current assets - inventory / current liabilities
profit
total contribution - fixed costs
gross profit
revenue - cost of sales
operating profit
gross profit - operating expenses
profit for the year
gross profit - operating expenses
net profit
gross profit - 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 / revenue x 100
net profit margin (%)
net profit / revenue x 100
profit for the year margin (%)
profit for the year / revenue x 100
variance
budgeted figure - actual figure
ROCE (%)
operating profit / total equity + non current liabilities x 100
ROCE (%)
total equity + non current liabilities = capital employed
gearing
non current liabilities / total equity + non current liabilities x 100
employee productivity
output over a time period / number of employees
capacity utilisation
actual output / maximum possible output x 100
inventory turnover
cost of sales / average inventories held
