Formula Flashcards
market capitalisation
market capitalisation = current share price x no. ordinary shares issued
expected value
expected value = pay off x probability
net gain
net gain = expected value - costs
what must be done before calculating net gain?
add all expected values to get total expected value, and then minus costs
sales growth
sales growth = (sales in that year - sales in previous year / sales in previous year) x 100
market growth
market growth = (market size in that year - market size in previous year / market size in previous year) x 100
market share
market share = (sales of this product / total sales in market) x 100
market size
market size = (sales / market share) x 100
PED
PED = % change in quantity demanded / % change in price
YED
YED = % change in quantity demanded / % change in income
% change
% change = (new - original / original) x 100
labour productivity
labour productivity = output per time period / no. of employees
capacity utilisation
capacity utilisation = (actual output over period / maximum output over period) x 100
unit costs (average costs)
unit costs = total costs / total output
revenue
revenue = no. of sales x selling price
variable costs
variable costs = variable cost per unit x no. of sales
total costs
total costs = fixed costs + total variable costs
profit
profit = revenue - expenditure
gross profit
gross profit = revenue - cost of sales
operating profit
operating profit = gross profit - expenses
net profit
(2 formulae)
net profit = operating profit - tax
net profit = total revenue - total costs
net cash flow
net cash flow = total inflows - total outflows
return on investment (ROI)
ROI = (profit of investment / cost of investment) x 100
variance
variance = budget - actual figure
opening balance
opening balance = closing balance of previous period
closing balance
closing balance = opening balance - net cash flow
contribution
contribution = selling price - variable costs
break even
break even = fixed costs / contribution
margin of safety
margin of safety = actual sales - break even point
gross profit margin
gross profit margin = (gross profit / revenue) x 100
operating profit margin
operating profit margin = (operating profit / revenue) x 100
net profit margin (profit for year margin)
net profit margin = (net profit / revenue) x 100
labour turnover
labour turnover = (no. employees leaving over period / average employed over period) x 100
labour cost per unit
labour cost per unit = total labour costs / total units of output
employee costs as percentage of turnover
employee costs as % of turnover = (labour costs / turnover) x 100
