equations Flashcards
market capitalisation
number of ordinary issues shares x current price of 1 share
ordinary share capital
number of ordinary issued shares x original price of 1 share
expected value
probability x result
net gain
expected values - initial cost
total contribution
total sales revenue - total variable costs
contribution per unit
selling price per unit - variable cost per unit
break even
fixed costs ÷ contribution per unit
margin of safety
actual output - break even output
profit
margin of safety x contribution per unit
gross profit
total revenue - total cost of sales
gross profit margin
(gross profit ÷ revenue) x100
operating profit
sales revenue - cost of sales and operations
operating profit margin
(operating profit ÷ sales revenue) x100
net profit
total revenue - total costs
net profit margin
(net profit ÷ total revenue) x100
payable days
(payables ÷ cost of sales) x365
receivable days
(receivables ÷ revenue) x365
return on investment
(investment profit ÷ capital invested) x100
current ratio
current assets ÷ current liabilities
(1.5 to 2.5)
gearing ratio
(non current liabilities ÷ capital employed) x100
(25% to 50%)
capital employed
total equity + non current liabilities
market size
(total sales ÷ market share) x100
market growth
(change in market size ÷ original market size) x100
market share
(firm sales ÷ total market sales) x100
PED
(% change demand ÷ % change price)
IED
(% change demand ÷ % change income)
return on capital employed
(operating profit ÷ capital employed) x100
inventory turnover
cost of goods sold ÷ average inventory held
labour productivity
total output ÷ total number of workers
labour turnover
(employees leaving ÷ total number of employees) x100
retention rate
(staff remaining ÷ original staff) x100
employee cost as a percentage of turnover
(employee cost ÷ revenue) x100
labour cost per unit
labour cost ÷ total output units
unit costs
total production cost ÷ total output units
capacity utilisation
(actual output ÷ maximum possible output) x100
revenue
selling price per unit x number of units sold
total cost
variable cost + fixed cost
total variable cost
variable cost per unit x number of units sold
ARR
