formulas Flashcards
added value formula
Selling price - the cost of bought materials, services = added value
total costs formula
total costs = variable + fixed costs
profit formula
profit = total revenue - total costs
revenue forumla
revenue = price x quantity sold.
added value (transformation process) equation
selling price - cost of bought materials
market capitalisation formula
share price x no. shares = market capitalisation
dividend yield equation
dividend per share / share price (X100)
decision tree: expected value formula
Probability of outcome x estimated financial outcome
market share formula
Sales of business / Entire sales in market X100
Market growth formula
Old sales - New sales X100
Income elasticity of demand (YED) equation
YED = % change in demand / % change in income
Price elasticity of demand (PED) formula
PED = % change in demand / % change price
above 1 = elastic good (changes)
below 1 = inelastic goof
1 = unitary good ( rare )
Unit cost formula
Unit costs = total costs / total units
Quality formula ( terms of deliveries )
deliveries on time / total deliveries X100
Capacity utilisation formula
Actual level of output / max possible output X100
Labour productivity formula
output per period / no. employees = x units per employee
Lead time equation
(days between) Order made - order recieved
reorder level formula ( inventory control chart)
(lead time x av. daily usage) + Buffer stock = reorder level
Profit formula in terms of contribution
Contribution - fixed costs = profit
Break-even formula
Fixed costs / contribution per unit = BE (units)
margin of safety formula (breakeven analysis)
MOS = Actual output - breakeven output
Net cash flow formula
Inflows - outflows = Net CF
return on investment formula
(Operating profit x100) / capital invested
Variable costs formula
Cost per unit x total no. units = variable costs
Contribution per unit formula
Contribution per unit = Selling price - variable costs per unit
Total contribution formula (terms of revenue and costs)
Total revenue - Total variablecosts
Total contribution formula
Cont per unit x no. units sold = T contribution
Profit for the year margin formula
PFTY/Revenue x 100
Operating profit margin formula
OP/Revenue x 100
Gross profit margin formula
GP/revenue x 100
Gross profit formula
Revenue - direct costs (costs of sales) = GP
Operating profit formula
Gross profit - indirect (operating/overheads)costs = Op prof
profit for the year formula
(Op profit + other profits)- taxation - net finance costs = PFTY
Market capitalisation formula
No. shares sold x share price = Market cap
Market share formula
Sales revenue / total market revenue x100 (over same period)
Price elasticity of demand (PED) formula
% change in demand / % change in price x100
Income elasticity of demand (YED) formula
% change in demand / % change in income x100
Labour turnover (%) formula
Number of staff leaving/total number of staff
X100
Employee retention rate formula
No. employees who remained in period/ number of employees at start of period.
Employee costs as a percentage of turnover formula
Employee costs/turnover X100
labour costs per unit formula
labour costs/units of output
ROCE formula (return on capital employed %)
OP/ T capital employed X100
Capital employed formula
T equity + NC liabilities
Working capital (Net current assets) formula
Current assets - current liabilities
Net assets formula
T Assets - T liabilities
Capital employed formula
T equity + NC liabilities
Total assets formula
Current assets + Non-current assets
Earnings per share formula
Profit for period/number of shares
Current ratio formula
Current assets / Current liabilities : 1
x :1
Gearing ratio formula
Non current liabilities / T equity + Non current liabilities
payables days formula
trade payables / cost of sales X365
receivables days formula
trade receivables / revenue X365
market growth (%) formula
Change in size of a market over a period/original size of the market X100
ARR/Annual rate of return formula
Average annual profit /cost of the investment (outlay) X100
Payback formula
(Not recovered/ Net CF next year x12)
Amount of full years + ^
NPV formula
Present value = cash flow x discount value
- Add all present values for each year
- Positive = accept investment
Net current assets formula
Current assets - current liabilities
Net liabilities formula
Total assets - total liabilities
Net current liabilities formula
Current liabilities - Current assets
Critical path total float formula
Latest finish time (LFT) - Earliest start time (EST) - Duration = Total float
- Float is spare time.
