Equatiom Flashcards
Revenue/ sales/turnover
Selling price per unit× number of units sold
Variable costs (total variable costs)
Variable cost per unit × number of units sold
Total costs
Fixed plus variable coste
Total costs
Fixed costs plus variable costs
Market capitalisation of a business
Number of issued shares × current share price
Expected value of a decision with two possible outcomes e.g A and B
(Pay off of A × probability of A)+( pay off of B × probability of B)
Net gain
Expected value- initial cost of decision
Market growth
Change in size of market over a period/ original size of market × 100
Market share
Sales of one product/ brand / business
Divided by total sales in market ×100
Added value
Sales revenue-costs of bought in goods and services
Labour productivity
Output over a time period/number of employees
Unit costs
Total costs/ number of units of output
Capacity utilisation
Actual output/maximum possible output
Return of investment
Profit from the investment/cost of the investment ×100
Grodd profit
Revenue- cost of sales
Profit from operations/operating profit
Gross profit- operating expenses
Profit for year
Operating profit + profit from other activities- networks finance costs - tax
Gross profit margin
Gross profit/revenue × 100
Profit from operations margin
Operating profit/ revenue × 100
Profit for year margin
Profit of year/ revenue × 100
Variance
Budgeted figure-actual figure
Contribution per unit
Selling price- variable costs per unit
+ contribution per unit × units sold
Or
Total revenue - total variable costs
Total contribution
Contribution per unit× Units sold
Or
Total revenue- Total variable costs
Break even output
Fixed costs/ contribution per unit
+
Actual level of output - break even level of output
Margin of safety
Actual level of output- break even level of output
Labout turnover
Number of staff leaving/number of staff employed by the business ×100
Employee retention rate for particular time of period
Number of employees who remained with the business for the whole period of time/ number of employees at start of the time period × 100
Employees costs as a percentage of turnover
Employee costs/turnover ×100
Labour cost per unit
Labour costs/units of output
Return in capital employed
Operating orofit/ total equity + non current liabilities × 100
Where total equity + non current liabilities = capital employed
Current ratio
Current assets/ current liabilities
Gearing
Non current liabilities/total equity+ non current liabilities × 100
Where total equity + non current liabilities = capital employed
Payable days
Receivables/ revenue × 365
Receivables days
Receivables / revenue × 365
Inventory turnover
Cost of sales / average inventories held
Average of return
Average annual return /
Initial cost of project × 100
Unit cost
Total costs/units of output
