Calculations Flashcards
Percentage change?
(change/original) x 100
Index number
Index numbers are set to show percentage change compared to a base year, which is set to 100.
Market share?
(Sales of a product or business/Total market sales) x 100
Price elasticity of demand?
% Change in quantity demanded/ % Change in price
Income elasticity of demand?
% Change in quantity demanded/ % Change in income
Net cash flow?
Total inflows - total outflows
Sales volume?
total number of units sold over a period of time
Sales revenue?
Number of units sold x unit price
Total variable costs?
number of units sold x variable costs per unit
Total costs?
fixed costs + variable costs
Contribution per unit?
selling price per unit - variable cost per unit
Total contribution?
contribution per unit x number of units (or sales revenue - total variable costs)
Break even?
fixed costs/contribution per unit
Margin of safety?
expected sales - break even level of output
Variance
actual - budget
Gross profit
sales revenue minus variable costs
Operating profit
gross profit minus fixed costs (overheads)
Net profit
Operating profit +/- finance costs and tax
Gross profit margin?
(Gross profit/sales revenue) x 100
Operating profit margin?
(Operating profit/sales revenue) x 100
Net profit margin (profit for the year)?
(Net profit/sales revenue) x 100
Current ratio
current assets/current liabilities
Acid test ratio
(current assets - inventories) / current liabilities
Productivity (labour)
output per period (units)/number of employees in that period
Capacity utilisation
(actual level of output/maximum possible output) x 100
Exchange rates
Pound into other currency = Amount (£) x exchange rate
Another currency into pounds = Amount / exchange rate
Payback (exact week)
(Amount still to pay back(outlay) / net cash flow for the year of payback) x 52
Average rate of return
(Total net return for the project/years of project) / initial investment
Net present value
Sum of annual net cash flows x discount factor for each respective year (minus initial investment)
Earliest start time
EST of previous activity + duration of previous activity
Latest finish time
LFT of last project - duration of last project
Float time on each activity
LFT - duration - EST
Gearing ratio
Non-current liabilities/Capital employed (which is total equity + non-current liabilities)
Return on capital employed?
(Operating profit/Capital employed) x 100
Labour turnover
(number of employees leaving over a period/total number of employees) x 100
Labour retention
(number of employees remaining over a period / total number of employees) x 100
absenteeism rate
(Total number of days missed through absence over a period / total number of possible working days) x 100
