Complete formula list Flashcards
Market share
Total sales of product/company divided by total market sales x 100
Market Growth
Change in size of market / original size of the market x 100
Sales Growth
Change in sales / original sales x 100
Profit
Sales revenue - total costs
Profit (using contribution)
Total contributions - fixed costs
Total Revenue
Selling price x number sold
Total Costs
Fixed costs + variable costs
Contribution per unit
Selling price per unit - variable costs per unit
Total Contribution
Contribution x no. of units sold
Breakeven
Total Revenue = total costs
Breakeven output
Fixed costs / contribution per unit
Margin of safety
Current output - breakeven output
Total variable costs
variable costs per unit x no. of units
added value
selling price - cost of bought in goods/services
Gross profit
Sales revenue - variable costs (costs of sales)
Operating profit
Sales revenue - variable costs + fixed costs (total costs)
gross profit - fixed costs
Gross profit margin
Gross profit - sales revenue x 100
Operating profit margin
operating profit - sales revenue x 100
Return on capital employed (ROCE)
Return on investment / cost of investment x 100
Return on investment
Net Profit / capital invested x 100
Labour turnover
Number of employees per year / average number of employees per year x 100
labour productivity
Total value of output / total number of employees
Labour absenteeism
average number of staff absent on one day / total number of staff x 100
Capacity utilisation
Current output / maximum output x 100
Unit costs
Total costs / output
Labour costs per unit
Labour costs / unit of output
Price elasticity of demand
% change in demand / % change in price
Market Capitalisation
Number of issued shares x current share price
Net Gain (decision tree)
expected value - initial cost of decision
Expected value
(pay off of A x probability of A) + (pay off of B x probability of B)
Re-order quantity
Lead time x average daily usage
Re-order level
Re order quantity + minimum inventory level
Profit for the year
Operating profit + profit from other activities - net finance costs - tax
Variance
budgeted - actual
Employee retention rate
No. of employees at end of period - number of leavers / No. of employees at end of period x 100
Employee costs as a % of turnover
employee costs / sales turnover x 100
return on capital investment
operating profit / total equity + non-current liabilities x 100
Current Ratio
Current assets / current liabilities
Gearing
Non current liabilities / total equity + non-current liabilities x 100
Payable days
Payables / cost of sales x 365
Receivables days
Receivables / sales revenue x 365
Inventory turnover
cost of goods sold / average inventories held
