Formulas Flashcards
Gearing
Total debt/total equities
Capacity utilsation
Current output/max output x100
Employee retention rate
Number of leavers/number of employees at end of period x100
Current ratio
Current assets/current liabilities (how well a company may be able to meet its short-term debt)
Varience
Actual-budgeted finance
Labour turnover
Number of leavers/average number of employee per year
Labour productivity
Output per period / total number of employees
Operating profit
gross profit - other operating costs
Break even(3 different equations)
TR=TC
Fixed costs / Contribution per unit
Break even output(units)
Fixed costs/contribution per unit
Margin of safety
Current output-break even output
Added value
Selling price-cost price
Contribution per unit
Selling price per unit - variable cost per unit
(profit made on individual products)
Gross profit
Sales revenue-variable cost
Current ratio
Current assets/current liablities
Return on capital employed
Return on investment/cost of investment
Return on investment
Net profit/capital employedx100
Market share
Sales/total market share
Price elasticity of demand(PED)
% Change in quantity demanded / % Change in price
Income Elasticity of demand(YED)
% Change in quantity demanded / % Change in income
Net cash flow
Total inflows - Total outflows
Sales volume
Total number of units sold over a period of time
Sales revenue
Number of units sold X Selling price
Total variable costs
Number of units sold X Variable cost per unit
Total costs
Fixed costs + Variable costs
Total contribution
Contribution per unit X Number of units sold
Net Profit
Operating Profit - (Net Interest + Exceptional Costs)
