Formulas Flashcards
Market growth (%)
Change in size of market over a period / original size of market
x 100
Market Share (%)
Sales / Total sales in market
x 100
Market size
Sales in industry x Selling price
Revenue
Selling price per unit x Units sold
Variable costs
Variable cost per unit x Units sold
Total costs
Fixed costs + Variable costs
Profit
Total revenue - Total costs
Contribution per unit
Selling price - Variable cost per unit
Break-even output (units)
Fixed costs / Contribution per unit
Margin of safety
Actual level of output - Break-even level of output
Net cash flow
Revenue - Expenses
Inflows - outflows
Closing balance
Opening balance + Net cash flow
Opening balance
Previous closing balance
Gross profit
Revenue - Cost of sales (direct costs)
Net profit
Gross profit - Total expenses (indirect costs)
Retained profit
Net profit - Tax and Dividends
Gross profit margin (%)
Gross profit / Revenue
x100
Net profit margin (%)
Net profit / Revenue
x 100
Absenteeism (%)
Total start absence days over a year / Total number of working days that should have been worked
x100
Labour productivity
Output over a time period / (average) number of employees over a time period
Labour turnover (%)
Number of staff leaving / (average) number of staff employed by business
x 100
Added value
Price product or service is sold at - cost of production
Capital productivity
Output / Capital employed
Capacity utilisation (%)
Actual output / Maximum possible output
x 100
Index number for any time period
Value in period / Value in base period
x 100
Price elasticity of demand
% change in quantity demanded / % change in price
Income elasticity of demand
% change in quantity demanded / % change in income
3 point moving average
Month A + Month B + Month C / 3
Variance
Budgeted figure - Actual figure
Working capital
Current assets - Current liabilities
Capital employed
Share capital + Retained earnings + Long-term borrowings
Depreciation
Original cost of fixed asset / Useful life of the asset
Depreciated (Straight line method)
Historical cost - Residual value / Useful life of asset
Return on capital employed (ROCE)
Operating profit / Capital employed
x 100
Current ratio
Current assets / Current liabilities
Acid test ratio
Current assets - stock / Current liabilities
Gearing ratio
Non-current liabilities / Capital employed
x 100
Earliest Start Time (EST)
EST of previous activity + Duration of previous activity
Latest Finish Time
LFT at the end of following activity - Duration of following activity
Float time
LFT at end of task - Duration if task - EST at start of task
