Calculations Flashcards
Sales revenue
selling price x units sold
Sales
Output / Revenue
Profit
Units sold x selling price
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - Expenses
Net Profit
Inflows - Outflows
Break-Even
Fixed Cost / CPU
Margin of Safety
actual output - break-even output
PED
% change in quantity demand / % change in price
Percentage change
new - old / old x 100
Unit costs
total fixed cost + total variable cost / total number of units
Unit variable cost
PURCHASING EOS ONLY
total variable cost / total units
Labour productivity
output per period / number of employees per period
Market share
total sales revenue of company / total sales revenue of market x 100
or
total volume of company / total sales volume of market x 100
Market growth
difference in total sales revenue of market / original sales revenue for the market x 100
or
difference in total sales volume of market / original sales volume for the market x 100
YED
% change in demand / % change in income
Cost plus
cost of a product + a mark-up
CPU
selling price - variable costs
Profit variance
actual profit - budget profit
Productivity
total output / total inputs x 100
Profit margin
profit / sales revenue x 100
Return on capital employed (ROCE)
operating profit / capital employed x 100
Capital employed
non-current liabilities + total equity
Total Equity
shareholder equity/capital + retained profit
Gearing
non-current liabilities / capital employed x 100
Current ratio
current assets / current liabilities
Labour turnover
number of employees leaving during period / average number employed during period x 100
Labour retention
number of staff staying (over a period of time) / average number of staff in post (in period of time) x 100
Absenteeism
number of employees absent during period / number employed during period x 100
Annual absenteeism
total number of staff absent over a year / total number of staff days that should have been worked x 100
Acid Test Ratio
(current assets - inventory) / current liabilities : 1
Net assets
total assets - total liabilities
Total liabilities
current liabilities + non-current liabilities
Total assets
current assets + non-current assets
Net current assets
current assets - current liabilities
Average number employed
(labour turnover)
number of employees at the beginning + number of employees at the end / 2
Gross Profit Margin
gross profit / sales revenue x 100
Variation
actual sales for the period - the four quarter moving average (trend)
NPV
NCF x discount factors
add discount factors together
discount factor - initial investment
Critical Path
EST = choose largest number
LFT = choose smallest number
ARR
Add ALL NCF
NCF - Initial Investment
Ans / Years
Ans / Initial Investment
Ans x 100
