equations Flashcards
ROCE
operating profit/ capital employed x 100
capital employed
NON current liabilities + total equity
total equity
share capital+retained profit
profit margin
profit/ sales revenue x 100
gearing
non-current liabilities / capital employed x 100
productivity
total output/ number of employees or machinery
profit variance
actual profit - budgeted profit
Break even
fixed cost/ CPU
CPU
selling price - Variable costs
cost plus pricing
production/variable costs + the present age increase
market share
total sales revenue of the company/total sales revenue of the market x 100
market growth
difference in total sales revinue of the market / original sales revenue of the market x100
index numbers
new value/old value x 100
percentage change
new number-original/originalx100
PED
percentage change in demand/ percentage change in price
YED
percentage change in demand/ percentage change in income
cost plus pricing what u multiply by
1.1 - mark up is 10%
1.2- mark up is 20%
1.3 mark up is 30%
Labour turnover
number of employees leaving during a period/ average number employed during a period x 100
labour retention
number of staff staying/ average number of staff in a period of time x 100
Absenteeism
number of staff absent in a year/ total number of staff days that should have been worked x 100
current ratio
current assets/ current liabilities
acid test
current assets - stock/ current liabilities
exchange rates (example)
expressed as a ratio eg
£1=$1.50
£1x1.5 = $1.5
£1/1.5=£1
ARR
investment - net return
divide by number of years
divide that by initial investment
times by 100