Formulae Flashcards
Labour Turnover
(Number of staff leaving) / (average number of staff) x100
Operating Profit Margin
(operating profit) / (revenue) x100
Recievables Days
(Recievablesx365) / (Sales Revenue)
Profit
Total Revenue - Total Costs
Total Contribution - Fixed Costs
Retention Rate
(Number of employees serving for 1yr+) / (Average number of staff) x100
Variance
Actual spent - Budget
Income elasticity of demand
(% change in quantity demanded) / (% change in income)
Profit of the year margin
(Profit of the year) / (revenue) x100
Break Even
(Fixed costs) / (contribution per unit)
GDP per capita
GDP / Total population
Labour cost per unit
Total Labour Costs / Total Output
Market Capitalisation
Current share price x Number of issued shares
Market Share
(Sales of product or business) / (Total market sales) x100
Inventory Turnover
Cost of sales / Average inventory held
Price elasticity of demand
% change in quantity demanded / % change in price
market growth
(Change in market sales over a period of time) / (original market sales) x100
Sales Growth
(Change in sales over a period of time) / (Original Sales) x 100
Revenue
Number of units sold x Price per unit
Return on capital employed (ROCE)
(Operating Profit) / (Total equity + non-current liabilities) x 100
Employee costs as a % of turnover
(Employee Costs) / (Revenue) x100
Total Costs
Fixed Costs + Variable Costs
Liquidity (current ratio)
Current assets / Current liabilities
Labour Productivity
Total output / number of workers
Gross Profit Margin
(gross profit) / (sales revenue) x 100
Acid Test Ratio
(Current assets - stocks/inventory) / (Current liabilities)
Payables Days
(Payables x 365) / (Cost of sales)
Net Cash Flow
Total inflows - Total outflows
Total contribution
Contribution per unit x Number of units sold
OR
Total revenue - total variable costs
Gearing
(Non Current Liabilities) / (Total Equity + Non Current Liabilities) x 100
Capacity Utilisation
(Actual Capacity) / (Maximum Capacity) x 100
gross profit
sales revenue- cost of sales
operating profit
gross profit-operating expenses
profit of the year
operating profit-tax and interest
Expected value of decision with two possible outcomes
eg) A & B
[ Pay off of A x probability of A] + [payoff of B x probability of B]
Net gain
Expected value - initial cost of decision
added value
sales revenue - costs of bought in goods and services
Unit costs
total costs/ number of units of output
Return on investment
profit from the investment/ cost of the investment x100
contribution per unit
selling price - variable costs per unit
Average rate of return
average annual return / initial cost of project x100
