Formulas Flashcards
Revenue
Selling price x number of units sold
Variable costs
Variable cost per unit x units sold
Total Costs
Fixed costs + variable costs
Profit
Total revenue - total costs
OR
total contribution - fixed costs
Market cap
Shares issued x share price
Net gain
Expected value - initial cost of decision
Market growth
Change in the size of the market/original size of the market x100
Market share
Sales of one product OR brand OR business/ total sales in the market x100
Added value
Sales revenue - cost of bought in goods and services
Labour productivity
Output/ number of employees
Unit costs
Total costs / number of units of output
Capacity utilisation
Actual output/maximum possible output x100
Return in investment
Profit from the investment / cost of the investment x100
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating costs
Profit for the year
Operating profit + profit from other activities - net finance costs - tax
GPM
Gross profit/revenue x100
OPM
Operating profit/ revenue x100
PFTYM
Profit for the year / revenue x100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - variable costs per unit
Total contribution
Contribution per units x units sold
OR
Total revenue - total variable costs
Break even output
Fix3d costs / contribution per unit
Margin of safety
Actual level of output - break even output
Labour turnover
Staff leaving / number of staff employed
Employee retention rate
Number of employees who remained / number of employees
Employee costs as a percentage of turnover
Employee costs / turnover x100
Labour costs per unit
Labour costs / units of output
ROCE
Operating profit / total equity + non current liabilities x100
Capital employed
Total equity + non current liabilities
Current ratio
Current assets / current liabilities
Gearing
Non current liabilities / total equity + non current liabilities
Payable days
Payables / cost of sales x 365
Receivable days
Receivables / revenue x 365
Inventory turnover
Costs of sales / average inventories held
Average rate of return
Average annual return / initial cost of project x100
