equations Flashcards
break even
fixed costs/ contribution
contribution
selling price- variable costs
closing balance
opening balance- net cash flow
net cash flow
cash inflows- cash outflows
net profit
sales- total cost
PED
percentage change in quantity demanded/ percentage change in price
YED
percentage change in quantity demanded/ percentage change in income
labour productivity
output (per time period)/ number of employees (per price period)
market capitalisation
market price of share X shared issued
capacity utilisation
actual output/ maximum output X100
average unit cost
total cost /number of units of output
market growth
market size (year 2)- market size (year 1)/ market size (year 1) X100
sales growth
sales (year 2)- sales (year 1)/ sales (year 1) X100
market shares
sales of business/ total market share X100
revenue
selling price X quantity sold
variable cost
output X variable cost per unit
total costs
fixed cost + variable cost
fixed cost
add together all the fixed costs
profit and loss
total revenue- total costs
expected value of decision with 2 possible outcomes
(pay off A X probability of A) + (pay off B X probability of B)
percentage change
difference (new-old) / original X100
margin of safety
current output - breakeven point of sales
gross profit
revenue - cost of sales
cost of sales
opening stock + purchases - closing sales
operating profit
gross profit - operating expenses
profit for the year
operating profit + profit from other activities- net finance costs- tax
gross profit margin
gross profit / revenue X100
operating profit margins
operating profit / revenue X100
profit for the year margin
operating profit / revenue X100
revenue per employee
employee costs / revenue X100
labour costs per unit
wage costs / output
return on capital employed formula
net profit / capital employed X 100
current ratio
current assets / current liabilities
gearing
long-term liabilities/ (shareholder funds + long term liabilities) X 100
shares
market capitalisation / share price
return on investment
return on investment £ / cost of the investment £ X 100
capital employed
total assets-current liabilities
