Formulae Flashcards

1
Q

Labour Turnover

A

(Number of staff leaving) / (average number of staff) x100

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2
Q

Operating Profit Margin

A

(operating profit) / (revenue) x100

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3
Q

Recievables Days

A

(Recievablesx365) / (Sales Revenue)

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4
Q

Profit

A

Total Revenue - Total Costs

Total Contribution - Fixed Costs

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5
Q

Retention Rate

A

(Number of employees serving for 1yr+) / (Average number of staff) x100

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6
Q

Variance

A

Actual spent - Budget

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7
Q

Income elasticity of demand

A

(% change in quantity demanded) / (% change in income)

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8
Q

Profit of the year margin

A

(Profit of the year) / (revenue) x100

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9
Q

Break Even

A

(Fixed costs) / (contribution per unit)

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10
Q

GDP per capita

A

GDP / Total population

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11
Q

Labour cost per unit

A

Total Labour Costs / Total Output

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12
Q

Market Capitalisation

A

Current share price x Number of issued shares

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13
Q

Market Share

A

(Sales of product or business) / (Total market sales) x100

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14
Q

Inventory Turnover

A

Cost of sales / Average inventory held

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15
Q

Price elasticity of demand

A

% change in quantity demanded / % change in price

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16
Q

market growth

A

(Change in market sales over a period of time) / (original market sales) x100

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17
Q

Sales Growth

A

(Change in sales over a period of time) / (Original Sales) x 100

18
Q

Revenue

A

Number of units sold x Price per unit

19
Q

Return on capital employed (ROCE)

A

(Operating Profit) / (Total equity + non-current liabilities) x 100

20
Q

Employee costs as a % of turnover

A

(Employee Costs) / (Revenue) x100

21
Q

Total Costs

A

Fixed Costs + Variable Costs

22
Q

Liquidity (current ratio)

A

Current assets / Current liabilities

23
Q

Labour Productivity

A

Total output / number of workers

24
Q

Gross Profit Margin

A

(gross profit) / (sales revenue) x 100

25
Acid Test Ratio
(Current assets - stocks/inventory) / (Current liabilities)
26
Payables Days
(Payables x 365) / (Cost of sales)
27
Net Cash Flow
Total inflows - Total outflows
28
Total contribution
Contribution per unit x Number of units sold OR Total revenue - total variable costs
29
Gearing
(Non Current Liabilities) / (Total Equity + Non Current Liabilities) x 100
30
Capacity Utilisation
(Actual Capacity) / (Maximum Capacity) x 100
31
gross profit
sales revenue- cost of sales
32
operating profit
gross profit-operating expenses
33
profit of the year
operating profit-tax and interest
34
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]
35
Net gain
Expected value - initial cost of decision
36
added value
sales revenue - costs of bought in goods and services
37
Unit costs
total costs/ number of units of output
38
Return on investment
profit from the investment/ cost of the investment x100
39
contribution per unit
selling price - variable costs per unit
40
Average rate of return
average annual return / initial cost of project x100