Formulas Flashcards
What is the equation for Net Gain?
Expected Value - Initial Cost Of Decision
What is the equation for Market Capitalisation?
Number Of Issued Shares X Current Share Price
What’s the equation for Return On Investment?
Profit Of Investment
Divided by
Cost Of Investment
X100
What’s the equation for Contribution Per Unit?
Selling Price - Variable Cost Per Unit
What’s the equation for Gearing?
Non-Current Liabilities
Divided by
Capital Employed
X100
What’s the equation for Labour Turnover?
Number Of Staff Leaving
Divided By
Average Number Of Staff Employed
100X
How do you calculate the Average Rate Of Return?
Average annual return
Divided by
Initial Cost Of Project
100X
How do you calculate Capacity utilisation?
Actual Output
Divided by
Maximum Possible Output
X100
How do you calculate the Gross Profit Margin?
Gross Profit
Divided by
Sales Revenue
100X
What’s the formula for Revenue?
Selling Price Per Unit X Number Of Units Sold
What the formula for (Total) Variable Cost
Variable Cost Per Unit X Number Of Units Sold
Formula For Total Cost
Fixed Cost + Variable Cost
What Is Profit?
Total Revenue - Total Costs
How Do You Calculate Market Growth %
Change in size of market over a given period
Divided by
Original size of the market
X100
How Do You Calculate Added Value?
Sales Revenue - Costs of bought-in goods and services
What’s The Formula For Labour Productivity?
Output over a time period
Divided by
Number Of Employees
How Do You Calculate Unit Costs (Average Costs)
Total Costs
Divided by
Number Of Units Of Output
How Do You Calculate Gross Profit?
Revenue - Cost Of Sales
How Do You Calculate Profit From Operations
Gross Profit - Operating Expenses
How Do You Calculate Profit For The Year
Operating Profit + Profit From Other Activities - Net Finance Cost - Tax
Profit from operations Margin %
Operating Profit
Divided by
Revenue
100X
Profit For The Year Margin %
Profit for year
Divided by
Revenue
100X
Calculate Variance
Budgeted Figure - Actual Figure
Calculate Current Ratio
Current assets
Divided by
Current Liabilities
Calculate Payables Days
Payables
Divided by
Cost Of Sales
365X
Calculate Receivables Days
Receivables
Divided By
Revenue
365X
Inventory Turnover
Cost Of Sales
Divided By
Average Inventories Held
Labour Cost Per Unit
Labour Costs
Divided By
Units Of Output
Employee Costs as Percentage Of Turnover %
Employee Costs
Divided By
Turnover
X100