Calculations Flashcards
Total costs
Total Costs = Fixed costs + Variable Costs
Profit
Profit = total revenue - total costs
(Total) Variable costs
(Total) Variable costs = variable cost per unit x number of units sold
Total revenue (sales revenue / turnover)
Total revenue = selling price per unit x number of units sold
Market capitalisation
Current share price x number of total shares
Sales Growth
Change in sales / previous sales x 100
Market share (%)
Company sales over a period of time/ total sales of the industry x 100
Labour productivity
Number of units made / number of employees
Unit costs
(Variable costs + fixed costs) / total units produced
Capacity utilisation
Actual output / maximum output possible x 100
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating expenses
Profit for the year
(Total revenue - cost of goods sold) / total revenue x 100
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Price per unit - variable cost per unit
Break-even output
Fixed costs / (sales price per unit - variable cost per unit)
Margin of safety
(Current sales - break-even point) / current sales
Operating profit margin
Operating profit / sales revenue x 100
Labour turnover (%)
Number of employees who have left in a period of time / number of total employees in a period of time x 100
Employee retention rate (%)
Number of employees at the end of the year - number pf leavers / number of employees at the end of the year x 100
Employee costs as a % of turnover
Employee costs / sales turnover x 100
Labour cost per unit
Total labour cosy / total level of output
Gross profit margin (%)
Gross profit / sales revenue x 100
Return on investment
Return on investment / cost of investment x100
Average rate of return (%)
Net return from project or number of years / initial cost of project x 100
Inventory turnover
Cost of goods sold / average inventories held
Return on capital employed (%)
Operating profit / total equity + non-current liabilities x 100
Labour cost per unit
Labour costs / units of output
Market growth (%)
Change in size / initial size x 100
Labour productivity
Number of units produced in a given period / number of employees
Profit for the year
Operating profit + other profit - net finance costs - tax
Price elasticity of demand
% change in quantity demand / % change in price
Gearing
Non-current liabilities / total equity + non-current liabilities x 100
Added value
Sales revenue - costs of bought in goods
Payables days
Payables (creditors) / cost of sales x 365
Receivables days
Receivables / sales revenue x 365
Margin of safety
Actual level of output - break even level of output
Current ratio
Current assets / current liabilities
Profit for the year margin (%)
Profit for the year / sales revenue x 100
