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