Every formula for a level business Flashcards
Market capitilisation of a business =
number of issued shares x current share price
Dividend yield (%) =
dividend per share (£) =
Dividend per share (pence)
—————- x100
share price (pence)
Market growth (%)
change in the size
of the market
over a period
—————– .x100
original size
of the market
Market share (%) =
sales of one product
OR
brand or
business
————. x 100
total sales in
the market
Price elasticty of demand
%change in the quantity demanded
——————-.
%change in price
Income elastcity of demand =
%change in the quanity demanded
—————.
% change in income
Revenue (sales or turnover)
selling price per unit x number of units sold
Variable costs (total variable costs)
variable cost per unit x number of units sold
What are total costs
fixed costs + variable costs
Contribution per unit
selling price - variable costs per unit
Total contribution =
contribution per unit x units sold
or
total revenue - total variable costs
Break-even output =
fixed costs
———–.
contribution per unit
Margin of saftey =
actual level of output - break-even level of output
Payable days =
payables
———-. x 365
cost of sales
Recivable days =
receivable days
———–. x365
revenue
Current ratio =
current assets
———–.
current liabilites
Profit =
Total revenue- total costs
or
total contribution - fixed costs
Gross profit =
revenue - cost of sales
Operating profit =
gross profit - operating expenses
Net profit =
gross profit- expenses
Profit for the year =
operating profit + profit from other activities - net finance costs- tax
Gross profit margin (%) =
gross profit
————– x 100
revenue
Operating profit margin (%) =
operating profit
————–. x365
revenue
Profit for the year margin (%)
profit for year
———. x100
revenue
Variance =
budgeted figure - actual figure
Return on capital employed (ROCE) (%) =
Operating profit
—————–. x 100
Total equity + non-current liabilities
where total equity + non-current liabilities = capital employed
Gearing (%)
Non-current liabilities
——————. x100
total equity + non current liabilites
where total equity + non- current liabilities = capital employed
A business with a gearing ratio of above 50% is said to be……?
highly geared
A business with a gearing ratio below 50% is described as having…..
low gearing
What is gearing
examines the capital structure of a business
seeing if there is long term stability
What is the calculation of capacity utilisation
Current output
————.——– x 100
maximum possible
output
