Calculations Flashcards
Sales volume
Sales revenue/selling price
Sales revenue
Selling price x quantity sold
Total costs
Fixed costs + total variable costs
Contribution
Selling price - variable cost
Total contribution
Sales revenue - total variable costs
Break even point
Fixed costs / contribution
Margin of safety
Actual output - break even level of output
Profit
Revenue - total costs
Profit margin
x profit / total revenue x 100
Current ratio
Current assets / current liabilities
Acid test ratio
Liquid assets / current liabilities
Capacity utilisation
Current output / maximum output x 100
Payback
- Calculate which year the investment will be covered
- Find the amount to be paid back / cash inflow for the year
- Multiply this by 12 to find the month
Average Rate of Return
- Find average annual profit
2. Divide this by initial investment x 100
Total float for an activity
LFT - duration - EST
Gearing
Non-current liabilities / total equity + non-current liabilities x 100
ROCE
Operating profit / total equity + non current liabilities
Labour productivity
Total output / number of workers x 100
Labour turnover
Number of staff leaving / average number of staff x 100
Retention rates
Number of employees for more than 1 year / average number of staff x 100
Absenteeism
Number of staff absent / total staff days worked x 100
