Business formulas Flashcards
Net Present value
Total - Investment
Net cash flow
cash inflow - cash outflow
Market capitalisation
number of issued shares x current share price
Market growth (%)
new market size - old market size / old market size x 100
Market share
sales / total market size x 100
sales growth (%)
sales this year - sales last year / sales last year x 100
PED
% Change in quantity demanded / % change in price
YED
% Change in quantity demanded / % change in income
Unit cost
Total costs / Units output
Capacity utilisation (%)
output / capacity x 100
Labour productivity
output per period / number of employees
ROI
return on investment (£) / cost of investment (£) x 100
Gross profit
sales revenue - cost of sales
Operating profit
sales revenue - cost of sales - operating expenses
gross profit margin (%)
gross proft / sales revenue x 100
operating profit margin (%)
operating profit / sales revenue x100
contribution per unit
selling price per unit - variable costs per unit
total contribution
total revenue - total variable costs OR contribution per unit x number of units sold
break-even output
fixed costs / contribution per unit
margin of safety
actual output - break-even output
labour productivity
output per period / no. employees
labour cost per unit
labour costs / units of output
employee costs as a % turnober
employee costs / sales turnover x 100
labour turnover (%)
no. of staff leaving / average no. of staff employed x 100
labour retention (%)
no. of staff employed at end of the period - no. of leavers / no. of staff employed at end of period x 100
working capital
current assets - current liability
current ratio
current assets / current liabilities
ROCE
operating profit / total equity + non-current liabilities x 100
inventory turnover
cost of sales / cost of average stock held
payable days
payables / cost of sales x 365
receivable days
receiveables / sales revenue x 365
