Formula Flashcards
Price elasticity of demand (PED)
% change in quantity demanded / % change in income
Net cash flow
Cash inflows - cash outflows
Opening balance
Cash balance at start of month
Sales revenue
Selling price X quantity sold
Total variable costs
Variable cost per unit X quantity sold
Total costs
Fixed cost + variable cost
Profit
Total revenue - total cost
Break even output
Fixed cost / contribution per unit
Contribution per unit
Selling price per item - variable cost per item
Total contribution
Contribution per unit X quantity sold
Margin of safety
Actual output - break even output
Profit
Sales - expenses
Net profit margin
Net profit / sales X 100
Gross profit margin
Gross profit / sales X 100
Return on capital employed
Profit before tax and interest / capital employed X 100
Current ratio
Current assets / current liabilities = ? : 1
Acid test ratio
Current assets - stock / current liabilities
Gearing
Non current liabilities ( long term liabilities) / capital employed X 100
Gross profit
Sales revenue - cost of sales
Operating (net) profit
Gross profit - ( fixed costs + variable costs)
Operating profit margin
( operating profit / revenue) X 100
% mark up
Difference in price / original cost X 100
% change
New value - old value / old value X 100
Income elasticity of demand ( YED)
% change in quantity demanded / % change in income
Opening balance
Cash balance at the start of the month
Closing balance
Opening balance + net cash flow
Cumulative flow
Sum of all closing balance
Budget variance
Budget amount - actual amount
Capital intensity
Capital goods / fixed costs X 100
Labour productivity
Output / number of employees
Capacity utilisation
Actual output / maximum possible output X 100
Labour turnover
Number of employees leaving / total number of employees X 100
Average cost per unit
Total production costs / total output
