Calculations/Formulas Flashcards
What is the Total Costs formula?
Total costs = fixed costs + variable costs
What is the sales revenue formula?
Sales revenue = selling price x sales volume
What is the gross profit margin formula?
Gross profit margin = Gross profit/Revenue x 100
What is the operating profit margin formula?
Operating profit margin = Operating profit/Revenue x 100
What is the Profit of the year margin formula?
Profit of the year margin = Profit of the year/Revenue
What is the Acid test ratio formula?
Acid test ratio = Current assets - inventory/Current liabilities
What is the working capital formula?
Working capital = Current assets - current liabilities
What is the Current ratio formula?
Curent ratio = Current assets/current liabilities
What is a Working capital cycle?
CASH - Production costs - Finished stock - Sales (Receivables)
What is the percentage change increase formula?
Increase = new number - original number
%ge increase = increase/original number x 100
What is the percentage change decrease formula?
Decrease = original number - new number
%ge decrease = decrease/original number x 100
What is the formula for PED?
PED = %ge change in quantity demanded/%ge change in price
What is the formula for YED?
YEd = %ge change in quantity demanded/%ge change in income
What is the formula for market share?
Market share % = Total sales of a firm/Total sales in a market x 100
What is the formula for sales volume?
Sales volume = Sales revenue/Selling price
What is the formula for Total Contribution
Total contribution = contribution per unit x number of units sold
Total contribution = sales revenue - total variable costs
What is the formula for profit/loss?
Profit = total contribution - fixed costs
Or, profit = total revenue - total costs
Generally, the higher the better, depending on the firms objectives
What is the formula for budget variance?
Actual figure - budgeted figure
What is the formula for break-even point?
BEP = total revenue = total costs
What is the formula for break even output?
Break even output = total fixed costs/contribution per unit
What is the margin of safety formula?
Margin of safety = current sales volume/output - break even output
What is the gross profit formula?
Gross profit = revenue - total variable costs (cost of sales)
What is the operating profit formula?
Operating profit = gross profit - fixed costs (overheads/expenses)
What is the net profit for the year formula?
Net profit for the year = operating profit +/- finance costs or income
What is the net profit margin formula?
Net profit margin = net profit/revenue x 100
What is the net cashflow formula?
Net cash flow = cash inflow - cash outflow
What is the formula for productivity?
Labour productivity = output per time period/number of employees at work
What is the formula for capacity utilisation?
Capacity utilisation = actual output/maximum possible output x 100
What is the total capital employed formula?
Total capital employed = total equity + non-current liabilities
What is the gearing ratio formula?
Gearing ratio = non-current liabilities/total capital employed x 100
All figures can be found in statement of financial position
Low gearing<30%
High gearing>60%
What is the ROCE % (return on capital employed) formula?
ROCE = operating profit/total capital employed x 100
Operating profit is found on the statement of comprehensive income
Total capital employed can be calculated from the statement of financial position
What is the absenteeism rate % formula?
Absenteeism rate % = total number of absent per period/average number employed per period x 100
What is the formula for labour turnover?
Labour turnover rate % = total number of employees leaving per period/average number of employees per period x 100
What is the labour retention rate % formula?
Labour retention rate % = total number of employees remaining per period/average number of employees per period x 100
What is the centred moving average 3 month formula?
Centred moving average 3 month = 3 months added together/ 3
What is the payback period formula?
What is the average rate of return formula?
What is the net present value formula?
What is the Contribution per unit formula?
Contribution per unit = selling price per unit - variable costs per unit
