Business formulas Flashcards
What is the formual for Total variable costs?
Variable Costs per unit X Nb of units sold
What is the formula for sales growth (%)?
(Sales this year-Sales last year/Sales alast year) X 100
What is the formula for Income elasticity of demand?
%Change in quantity demanded/%Change in real income
What is the formula for capacity utilisation (%)?
(Actual output/maximum possible output) X 100
What is the formula for unit costs (average costs)?
Total costs/Number of units of output
What is the formula for return on investment (%)?
(Profit from the investment/cost of the investment) X 100
What is the formula for the % change in profit?
(This years profit-Last years profit/Last years profit) X 100
What is the formula for operating profit?
Gross profit-expenses
What is the formula for profit of the year?
All profit-financial expenses
What is the formula for gross profit margin?
(Gross profit/revenue) X 100
What is the formula for operating profit margin?
(operating profit/revenue) X 100
What is the formula for profit for the year margin?
(Profit for the year/revenue) X 100
What is the formula for break even?
Fixed cost/contribution per unit
What is the formula for margin of safety?
Actual output level-break even level of output
What is the formula for total contribution?
Contribution per unit X output
OR
Total revenue - Total variable cost
What is the formula for contribution per unit?
Selling price per unit-variable cost per unit
What is the formula for labour costs per unit?
Labour costs/Units of output
What is the formula for employee costs as % of turnover?
(Employee costs/Sales turnover) X 100
What is the formula for labour turnover (%)?
(Nb of staff leaving/Nb of staff employed) X 100
What is the formula for labour retention (%)?
(Nb of staff employed at the end of period-Nb or leavers/Nb of staff employed at start of period) X 100
What is the formula for net profit margin?
(Net profit/revenue) X 100
What is the formula for variance?
Budgeted figure-actual figure
What is the formula for added value?
Sales revenue-Costs of bought in goods and services
What is the formula for net cash flow?
Total inflows-total outflows
What is the formula for net current assets?
Current assets-Current liabilities
What is the formula for capital employed?
Equity+Non current liabilities
What is the formula for return on capital employed (ROCE)(%)?
(Operating profit/Total equity+non-current liabilities) X 100
What is the formula for current ratio?
Current assets/current liabilities
What is the formula for gearing?
(Non current liabilities/total equity+non current liabilities) X 100
What is the formula for inventory turnover?
Cost of goods sold/average inventories held
To find days, divide by 365
What is the formula for payable days?
(Payables/costs of sales) X 365
What is the formula for receivable days?
(receivables/revenue) X 365
