Calculations Flashcards
How do you calculate total costs?
Total costs = fixed costs + variable costs
How do you calculate profit?
Profit = total revenue = total costs
How do you calculate variable costs (Total variable costs)?
Variable costs = variable cost per unit x number of units sold
How do you calculate Market capitalisation?
Market Capitalisation = number of issued shares x current share price.
How do you calculate Net Gain from a decision tree
Net Gain = Expected value - initial cost of decisions
How do you calculate market share?
Market share = Sales of one product / total sales in the market x 100.
How do you calculate labour productivity?
Labour Productivity = Output per time period/number of employees.
How do you calculate Unit Costs (Average costs)
Unit Costs = total costs of production / number of units of ouput produced
How do you calculate Capacity Utilisation?
Capacity Utilisation = actual output in a given time period / maximum possible output in a given time period x 100
How do you calculate Return on Investment?
Return on Investment = return on investment / cost of the investment x100
How do you calculate Gross Profit?
Gross Profit = Sales revenue - Cost of Sales
How do you calculate contribution per unit?
Contribution per unit = selling price - variable cost per unit
How do you calculate break-even output?
Break-even output = Fixed Costs / Contribution per unit
How do you calculate Margin of Safety?
Margin of Safety = actual level of output - breakeven level of output
How do you calculate Gross Profit Margin?
Gross Profit Margin = Gross Profit / Sales Revenue x 100
How do you calculate employee retention rate?
Labour Turnover = number of staff leaving during the year / average number of staff employed by the business during the year x 100
How do you calculate Labour Cost Per Unit?
Labour cost per unit = Labour costs / Unit of Output
How do you calculate Return on Capital Employed (ROCE)?
ROCE = Operating Profit / Total Equity + Non - Current Liabilities x 100
How do you calculate the Current Ratio?
Current Ratio = Current Assets / Current Liabilities
How do you calculate Gearing?
Gearing = Non-current Liabilities / Total Equity + Non-current liabilities x 100
How do you calculate Payables Days?
Payable days = Payables / Cost of Sales x365
How do you calculate Receivable days?
Receivable days = Receivables / Sales Revenue x365
How do you calculate Inventory Turnover?
Inventory Turnover = Cost of goods sold / Average Inventories Held
How do you calculate the Average Rate of Return?
Average rate of return = Net return from project / Initial cost of project x100
