formulas Flashcards
total costs
fixed costs + variable costs
profit
total revenue - total costs
variable costs
vc per unit x no of units sold
total revenue (sales revenue/turnover)
selling price per unit x no of units sold
market capitalisation
number of issued shares x current share price
net gain
expected value - initial cost of decision
market growth in year x
change in size of market between year x and y / size of market in year x (x 100)
sales growth in year x
change in sales of product or business between year x and y / sales of product in year x (x100)
market share
sales of one product / total sales in market x 100
price elasticity of demand
percent change in quantity demand /
percentage change price
added value
sales revenue - costs of bought in goods and services
labour productivity
output per time period / no of employees
unit costs ( average costs)
total costs of production / no of units of output produced
capacity utilisation
actual output in a given time period / max possible output in a time period x 100
return on investment
return on investment / cost of investment x 100
gross profit
sales revenue - cost of sales
profit from operations
sales rev - cost off sales - operating expenses
profit for year
operating profit + profit from other activities - net finance costs - tax
contribution per unit
selling price - vc per unit
total contribution
contribution per unit x units produced or sold
break - even output
fixed costs / contribution per unit
margin of safety
actual level of output - breakeven level of output
gross profit margin
gross profit / sales revenue x 100
profit from operations margin
operating profit / sales rev x 100
profit for the year margin
profit for year / sales rev x 100
labour turnover
no of staff leaving during year / average no of staff employed by the business during the year x 100
employee retention rate for a particular time period
no of employees at end of period - number of leavers / no of employees at end of period x 100
employee costs as percentage of turnover
employee costs / sales turnover x 100
labour cost per unit
labour costs / units of output
ROCE
operating profit / total equity + non-current liabilities x 100
current ratio
current assets / current liabilities
gearing
non - current liabilites / total equity + non current liabilites x 100
payables days
payables / cost of sales x 365
receivables days
receivables / sales revenue x 365
inventory turnover
cost of goods sold / averages inventories held
average rate of return
bet retune from project / initial cost of project x 100
