formulaes Flashcards
revenue =
selling price per unit x number of units sold
variable costs =
variable cost per unit x number of units sold
total costs =
fixed costs + variable costs
profit=
total revenue - total costs
market capitalisation of a business =
number of shared issued x current share price
net gain
expected value - initial cost of decision
market growth (%)
change in size of market over a period/ original size of market x 100
market share (%)
sales of product/ total sales of the market x 100
added value
sales revenue - costs of brought in goods and services
labour productivity
output over a time period/ number of employees
unit costs(average costs)
total costs/number of units of output
capacity utilization (%)
actual output/maximum possible capacity x 100
return on investment (%)
profit from the investment(£)/ cost of the investment(£) x 100
gross profit
revenue - costs of sales
profit from operations = operating profit =
gross profit - operating expensive
profit for year
operating profit + profit from other activities - net finance costs - tax
gross profit margin (%)
gross profit/ revenue x 100
profit from operations margin
operating profit/revenue x 100
profit for year margin (%)
profit for the year/ revenue x 100
variance
budgeted figure - actual figure
contribution per unit
selling price - variable cost per unit
total contribution
contribution per unit x unit sold
or
total revenue - total variable cost
break-even output
fixed costs/ contribution per unit
margin of safety
actual level of output - break-even level of output
labour turnover (%)
number of staff leaving/ number of staff employed x 100
Employee retention rate (%) for a particular time period
Number of employees who remained with the business
for the whole period of time/ Number of employees at start of the time period x 100
Employee costs as percentage of turnover
employee costs / turnover x 100
labour costs per unit
labour costs/ units of output
return on capital employed(ROCE)(%)
operating profit/ total equity + ncl x 100
current ratio
current assets/ current liabilities
gearing (%)
ncl / total equity + ncl x 100
payable days
payables / cost of sales x 365
receivable days
receivables/ revenue x 365
inventory turnover
cost of sales/ average inventory held
average rate of return (%)
average annual return (£) / initial cost of project (£) x 100
