Formulas Flashcards
Revenue
Selling price x quantity sold
Market capitalisation
Current share price x total number of shares issued
Market share* (%)
Sales of business in a time period /
total market sales in time period
x 100
Profit
Revenue — total expenses
Gross profit*
Revenue — the cost of goods sold
Working capital
Current assets — current liabilities
Net cash flow
Cash inflows — cash outflows
Closing cash balance
Opening cash balance + net cash flow
OR
Opening cash balance + [inflows — outflows]
Average cost
Total cost of producing the product / number of units produced
Capacity utilisation
Current level of output /
maximum output level
x 100
Section angle (pie graph)
Value of one section /
Total value of all sections
x 360
Labour turnover
Number of employees leaving in a year /
Average number of people employed
x 100
Break-even
Fixed cost /
Contribution per unit
Margin of safety
Break-even level of output —
Current level of output
Labour productivity
Total output given in a time period /
Total workers employed
