Business Formulas Flashcards
What is the calculation for payables days
Payables
————- x100
Cost of sales
What is the formula for. Receivables days
Receivables
—————— x100
Sales revenue
What is gross profit margin calculation
Gross profit
—————— x100
Sales revenue
What is the formula for capacity utilisation
Actual output in a given time period
————————————————-x100
Maximum possible output in a given
Time period
What is the formula for profit for year margin
Profit for year
——————— x100
Sales revenue
What is the formula for return on investment
Return on investment
———————————x100
Cost of the investment
How do you calculate net gain in a decision tree
Expected value-cost of decision
What is the formula for gearing
Non-current liabilities
———————————x100
Total equity + non-current
Liabilities
What is the formula for operating profit margin
Operating profit
————————x100
Sales revenue
What is the formula for current ratio
Current assets
———————
Current liabilities
How do you calculate labour productivity
Output per time period
———————————
Number of employees
What is the formula for break even output
Fixed costs
——————x100
Contribution per
Unit
What is the formula for labour turnover
Number of staff leaving during
The year
——————————————— x100
Average number of staff employed
By the business during the year
How do you calculate total contribution
Contribution per unit x unit produced or sold
Total revenue - total variable costs
How do you calculate margin of safety
Actual level of output - breakeven level of output
How do you calculate market capitalisation
Number of issued shares x current share price
How do you calculate average costs
Total costs of production
————————————x 100
Number of units of output
Produced
How do you calculate employee retention rate
Number of staff leaving during
The year
———————————————x100
Average number of staff employed
By the business during the year
