Business formulas Flashcards

1
Q

What is the formula for profit?

A

Revenue - Total Cost

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2
Q

What is the formula for revenue/Turnover?

A

Price X Quantity Sold

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3
Q

What is the formula for total cost?

A

Fixed Cost + Variable Cost

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4
Q

What is the formual for Total variable costs?

A

Variable Costs per unit X Nb of units sold

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5
Q

What is the formula for market growth (%)?

A

(Change in size of market over a period/Original size of market) X 100

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6
Q

What is the formula for market share (%)?

A

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

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7
Q

What is the formula for sales growth (%)?

A

(Sales this year-Sales last year/Sales alast year) X 100

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8
Q

What is the formula for price elasticity of demand?

A

%Change in quantity demanded/%Change in price

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9
Q

What is the formula for Income elasticity of demand?

A

%Change in quantity demanded/%Change in real income

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10
Q

What is the formula for capacity utilisation (%)?

A

(Actual output/maximum possible output) X 100

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11
Q

What is the formula for unit costs (average costs)?

A

Total costs/Number of units of output

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12
Q

What is the formula for return on investment (%)?

A

(Profit from the investment/cost of the investment) X 100

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13
Q

What is the formula for the % change in profit?

A

(This years profit-Last years profit/Last years profit) X 100

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14
Q

What is the formula for gross profit?

A

Revenue-cost of sale

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15
Q

What is the formula for operating profit?

A

Gross profit-expenses

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16
Q

What is the formula for profit of the year?

A

All profit-financial expenses

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17
Q

What is the formula for gross profit margin?

A

(Gross profit/revenue) X 100

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18
Q

What is the formula for operating profit margin?

A

(operating profit/revenue) X 100

19
Q

What is the formula for profit for the year margin?

A

(Profit for the year/revenue) X 100

20
Q

What is the formula for break even?

A

Fixed cost/contribution per unit

21
Q

What is the formula for margin of safety?

A

Actual output level-break even level of output

22
Q

What is the formula for profit(break-even)?

A

Total contribution-fixed cost

23
Q

What is the formula for total contribution?

A

Contribution per unit X output
OR
Total revenue - Total variable cost

24
Q

What is the formula for contribution per unit?

A

Selling price per unit-variable cost per unit

25
Q

What is the formula for labour productivity?

A

Output per period/Nb of employees

26
Q

What is the formula for labour costs per unit?

A

Labour costs/Units of output

27
Q

What is the formula for employee costs as % of turnover?

A

(Employee costs/Sales turnover) X 100

28
Q

What is the formula for labour turnover (%)?

A

(Nb of staff leaving/Nb of staff employed) X 100

29
Q

What is the formula for labour retention (%)?

A

(Nb of staff employed at the end of period-Nb or leavers/Nb of staff employed at start of period) X 100

30
Q

What is the formula for market capitalisation?

A

Share Price X Nb Of Shares In Issues

31
Q

What is the formula for net profit margin?

A

(Net profit/revenue) X 100

32
Q

What is the formula for net profit?

A

Expected value-Cost

33
Q

What is the formula for variance?

A

Budgeted figure-actual figure

34
Q

What is the formula for added value?

A

Sales revenue-Costs of bought in goods and services

35
Q

What is the formula for net cash flow?

A

Total inflows-total outflows

36
Q

What is the formula for net current assets?

A

Current assets-Current liabilities

37
Q

What is the formula for capital employed?

A

Equity+Non current liabilities

38
Q

What is the formula for return on capital employed (ROCE)(%)?

A

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

39
Q

What is the formula for current ratio?

A

Current assets/current liabilities

40
Q

What is the formula for gearing?

A

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

41
Q

What is the formula for inventory turnover?

A

Cost of goods sold/average inventories held

To find days, divide by 365

42
Q

What is the formula for payable days?

A

(Payables/costs of sales) X 365

43
Q

What is the formula for receivable days?

A

(receivables/revenue) X 365