Formulas Flashcards
Sales revenue
Selling price x Quantity sold
Profit
P= T-T
Profits= Total costs- Total revenue
Percentage change
Change / original
X 100
What is the formula for calculating market share?
Market Share = (Sales of a Business / Total Sales in the Market) x 100
What does PED stand for and how is it calculated?
PED = % Change in Quantity Demanded / % Change in Price
What does YED represent and how is it calculated?
YED = % Change in Quantity Demanded / % Change in Income
What is the breakeven point formula?
Breakeven = Total Fixed Costs / Contribution per Unit
What is the formula for contribution?
Contribution = Selling Price - Variable Cost per Unit
How is total contribution calculated?
Total Contribution = Contribution per Unit x Number of Units Sold
What is the margin of safety formula?
Margin of Safety = Total Output - Breakeven Point
How is gross profit calculated?
Gross Profit = Sales Revenue - Cost of Sale
What is the formula for gross profit margin?
GP Margin = (Gross Profit / Sales Revenue) x 100
What is operating profit and how is it calculated?
Operating Profit = Gross Profit - Expenses
What is the formula for operating profit margin?
OP Margin = (Operating Profit / Sales Revenue) x 100
How are total costs calculated?
T=C+C
Total Costs = Fixed Costs + Variable Costs
What is the formula for total variable costs?
Total Variable = Total Costs - Fixed Costs
How is total variable costs determined from average variable costs?
Total Variable = Average Variable x Output
What is the formula for average variable costs?
Average Variable = Variable Costs / Output
How is net profit calculated?
Net Profit = Operating Profit - Interest/Tax
What is the formula for net profit margin?
NP Margin = (Net Profit / Sales Revenue) x 100
What is the current ratio formula?
Current Ratio = Current Assets / Current Liabilities
What does the acid test ratio measure?
Acid Test Ratio = (Current Assets - Stock) / Current Liabilities
Capital Productivity
Capital Productivity = Output per Time Period / Number of Machines
What is working capital and how is it calculated?
Working Capital = Current Assets - Current Liabilities
Productivity
Productivity = Output per Time Period / Input per Time Period
What is capacity utilization and how is it expressed?
Capacity Utilization = (Actual Output / Maximum Output) x 100
How is labor productivity calculated?
Labor Productivity = Output per Time Period / Number of Workers/Hours Worked
What is the formula for the Gearing Ratio?
Gearing Ratio = Non current liabilities/ Capital employed x 100
What does ROCE stand for?
Return on Capital Employed
What is the formula for ROCE?
ROCE Ratio = Operating Profit / Capital Employed x100
How is Capital Employed calculated?
Capital Employed = Total Equity + Non-Current Liabilities
What is the formula for Labour Productivity?
Labour Productivity = Output per Time Period / No. Workers/Hours Worked
Labour Turnover
Labour Turnover = No. Employees Leaving / Average No. Employees x100
How is Absenteeism calculated?
Absenteeism = No. Work Days Lost Through Absence / Total Possible Days Worked x100
Closing balance
Net cash flow + Opening balance
Net cash flow
Cash inflows - cash outflows
Opening balance
Cash at the start of the month
Budget variance
Budget amount - actual amount
Average cost per unit (unit cost)
Total production cost / number of units
Average rate of return
Average annual profit / initial investment x 100
Capacity utilisation
actual output / minimum possible output x 100
Working capital
Current assets - current liabilities
Sales volume
Sales revenues / price
Float time formula ( for critical path analysis)
LFT- Duration- EST
