Formulas Flashcards
revenue
selling price x number of units sold
variable costs
variable cost per unit x number of units sold
total costs
variable + fixed costs
profit
total revenue - total costs
market capitalisation
number of issued shares x current share price
expected value
payoff x probability
net gain
ev - associated cost
market growth
change in the size of a market over time/original size of the market
x 100
market share
sales of one product/brand/business/total sales in the market
x 100
added value
sales revenue - cost of bought in goods and services
labour productivity
output over time period/number of employees
unit costs
total costs/number of units
capacity utilisation
actual output/maximum output
x 100
return on investment
profit from investment/cost of investment
x 100
gross profit
revenue - direct costs
operating profit
gross profit - indirect costs
profit for the year
operating profit - other expenses (tax)
profit margins
gross-operating-pfy / revenue
x 100
variance
budgeted figure - actual figure
contribution per unit
selling price - variable cost per unit
total contribution
total revenue - total vc
break-even output
fixed costs/contribution per unit
margin of safety
actual output - break-even level of output
labour turnover
number of staff leaving/number employed by the business
x 100
employee retention rate
number of staff who remained with the business the whole period of time/number of staff at the start
x 100
employee costs as a % of turnover
employee costs/turnover
x 100
labour costs per unit
labour costs/turnover
return on capital employed
operating profit/total equity + non-current liabilities
x 100
current ratio
current assets/current liabilities
gearing
non-current liabilities/total equity + non-current liabilities
x 100
payable days
payables/cost of sales
x 365
receivable days
receivables/revenue
x 365
inventory turnover
cost of sales/average inventories held
average rate of return
average annual return/initial cost of project
x
100
