Formulas Flashcards
Market share formula
sales held by one product or company divided by the total market sales x100
Market growth formula
change in size of the market divided by original size of market x100
sales growth
change in sales of the business divided by original sales of business x100
profit
total revenue - total costs
total revenue
selling price x number sold
total costs
fixed costs + variable costs
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit x no. of units sold
breakeven occurs when
total revenue - total costs
margin of safety
current output - breakeven output
total variable costs
variable cost per unit x no. of units
added value
selling price - costs of bought in goods / services
gross profit
sales revenue - variable costs
operating profit
sales revenue - variable costs - fixed costs
gross profit margin %
gross profit divided by sales revenue x100
operating profit margin %
operating profit divided by sales revenue x100
ROCE (return on capital employed)
return on investment x100 divided by cost of investment x100
return of investment
net profit divided by capital invested x100
labour turnover
number of leavers per year divided by average number of leavers per year x100
labour productivity
total value of output divided by total number of employees
labour absenceteeism
average number of staff absent on one day divided by total number of staff x100
capacity utilisation
current output divided by max output x100
unit costs (average costs)
total costs divided by output
Labour cost per unit
labour costs divided by units of output
price elasticity of demand
% change in demand divided by % change in price
market capitalisation of business
number of issued shares x current share price
in a decision tree, net gain
expected value - initial cost of decision
re order quantity
lead time (in days) x average daily use
re order level
re order quantity + minimum inventory level
profit of the year
operating profit + profit from other activities - net finance costs - tax
variance
difference between actual and budgeted figure
employee retention rate
no. of employees at end of period - number of leavers divided by no. of employees at end of period x100
employee costs as a percentage of turnover
employee costs divided by sales turnover x100
current ratio
current assets divided by current liabilities
