Formulae Flashcards
Revenue =
average selling price x quantity sold
Profit =
revenue - total costs
OR
total contribution - fixed costs
Market capitalisation =
current share price X shared issued
Ordinary share capital =
number of shares sold X price they were sold for
Decision tree expected value of outcome =
probability X pay-off
Net gain =
EV - initial cost
Market share =
(sales of company / total sales in market) x 100
Value =
volume X average price
Market growth =
(change / original amount) x 100
Sales growth =
((sales this year - sales last year) / sales last year) X 100
PED =
% change in demand / % change in price
YED =
% change in demand / % change in income
Labour productivity =
output per period / number of employees at work
Re-order level =
(lead time (days) X average daily use) + buffer stock
Debt to equity ratio =
(debts / long term funding) X 100
Return on investment =
((financial gains - total cost) / initial cost) X 100
Total contribution =
contribution per unit x units sold
OR
sales revenue - variable costs
Contribution per unit =
selling price - variable costs per unit
Break-even point =
fixed costs / contribution per unit
Target profit output =
(fixed costs + target profit) / contribution per unit
Length of cycle =
time goods are held in stock + time taken for receivables to be paid - period of credit received from suppliers
Gross profit margin =
(gross profit / revenue) x 100
Gross profit =
revenue - cost of sales
Profit for year margin =
(profit for year / revenue) x 100
