Formula Flashcards
Revenue/Sales/Turnover
Selling price per unit x Number of units sold
Variable costs
Variable cost per unit x Number of units sold
Total costs
Fixed costs + Variable costs
Profit
Total revenue - Total Costs
OR
Total contribution - Fixed costs
Market capitalisation of a business
Number of shares issued x Current share price
Expected value of a decision with two possible outcomes
A & B =
(Pay-off of A × probability of A) + (Pay-off of B × probability of B)
Net gain
Expected value - Initial cost of a decision
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
———————————————- x100
Total sales in the market
Added value
Sales revenue - costs of bought-in goods and services
Labour productivity
Output over a time period
/
Number of employees
Unit costs (average costs)
Total costs
/
Number of units of output
Capacity utilisation (%)
Actual output
———————————————– x100
Maximum possible output
Return on investment (%)
Profit from the investment (£)
———————————————— x100
Cost of the investment (£)
Gross profit
Revenue - Cost of sales
Profit from operations/Operating profit
Gross profit - Operating expenses
Profit for year
Operating profit + Profit from other activities - Net finance costs - Tax
Gross profit margin (%)
Gross profit
——————– x100
Revenue
Profit from operations margin/Operating profit margin (%)
Operating profit
————————— x100
Revenue
Profit for year margin (%)
Profit for year
————————- x100
Revenue
Variance
Budgeted figure - Actual figure
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 safety
Actual level of output - Break-even level of output
Labour turnover (%)
Number of staff leaving
———————————————- x100
Number of staff employed by the business
Employee retention rate (%) for a particular time period
Number of employees who remained with the business
for the whole period of time
———————————————— x100
Number of employees at start of the time period
Employee costs as a percentage of turnover
Employee costs
———————– x100
Turnover
Labour costs per unit
Labour costs
/
Units of output
Return on capital employed (ROCE) (%)
Operating profit
——————————————– x100
Total equity + non-current liabilities
Where total equity + non-current liabilities = capital employed
Current ratio
Current assets
————————- x100
Current liabilities
Gearing (%)
Non-current liabilities
—————————————— x100
Total equity + non-current liabilities
Where total equity + non-current liabilities = capital employed
Payables days
Payables
—————— x365
Cost of sales
Receivables days
Receivables
—————– x365
Revenue
Inventory turnover
Cost of sales
/
Average inventories held
Average rate of return (%)
Average annual return (£)
————————————– x100
Initial cost of project (£)
