EQUATIONS Flashcards
Market Capitalisation
Number of Shares Issued
X
Share Price
Market Share
Sales of Business / Total Sales in Market X 100
Price Elasticicity of Demand
% Change in Quantity Demanded / % Change in Price
Labour Productivity
Capacity Utilisation
Output in a given time period / Maximum possible output
X 100
Contribution per unit
Selling Price - Variable Costs per Unit
Break Even
Fixed Costs / Contribution
Margin of Safety
Actual Level of Output - Breakeven Level of Output
Gross Profit Margin
Gross Profit / Revenue X 100
Operating Profit Margin
Operating Profit / Revenue X 100
ROCE
Net Profit / Capital Employed X 100
Labour Turnover
Employee Retention Rate
Number of employees at end of period - number of leavers
(divided by)
Number of employees at end of period
Current Ratio
Current Assets / Current Liabilities
Gearing
Non-current liabilities
(divided by)
Total Equity + Non-current liabilities
Payables Days
Payables / Cost of Sales X 365
Recievables Days
Recievables / Revenue X 365
Inventory Turnover
Cost of Goods Sold / Average Inventories Held
Average Rate of Return
Net return from project / initial investment x 100
Float
LFT - (Duration - EST)
Dividend per Share
Total Dividends / Number of Issued Shares
Dividend Yield
Dividend Per Share / Market Share Price X 100
Income Elasticity of Demand
% change in quantity demanded / % change in income
