Formulae Flashcards
(31 cards)
Total costs
fixed costs + variable costs
Profit
total revenue - total costs
or
total contribution - fixed costs
Variable costs (Total variable costs)
variable costs per unit X number of units
Total revenue
selling price per unit X number of units sold
Market capitalisation
number of issues shared X current market price
Market share
sales of one product / total sales in marker X 100
Labour productivity
output per period of time / number of employees X 100
Unit costs
total costs of production / number of units of output produced
Capacity utilisation
actual output in a given time period / maximum possible output X 100
Return on investment
return on investment / cost of investment X 100
Gross profit
sales revenue - costs of sales
Operating profit
sales revenue - costs of sales (gross profit) - operating expenses
Contribution per unit
selling price - variable costs per unit
Total contribution
contribution per unit X units produced or sold
or
total revenue - total variable costs
Break-even output
fixed costs / contribution per unit
Margin of safety
actual level of output - breakeven level of output
Gross profit margin
gross profit / sales revenue X 100
Operating profit margin
operating profit / sales revenue X 100
Labour turnover
number of staff leaving during the year / average number of staff employed by business during year X 100
Labour costs per unit
labour costs / units of output
ROCE (Return on Capital Employed)
operating profit / total equity + non-current liabilities x 100
Current Ratio
current assets / current liabilities
Gearing
non-current liabilities / total equity + non-current liabilities x 100
Payable days
payable / cost of sales X 365
