formulas Flashcards
Market share
(sales of product or business/ total market sales) x100
PED
% change in quantity demanded/ % change in price
YED
% change in income/ % change in income
Net cash flow
total inflows - total outflows
Sales volume
no.of units sold in a period of time
Sales revenue
sales volume x unit price
Total variable costs
no.of units sold x variable cost per unit
Total costs
fixed costs + variable costs
Contribution per unit
selling price per unit - variable cost per unit
Total contribution
contribution per unit x no.of units sold
Break even
fixed costs/ contribution per unit
Variance
actual - budget
Gross profit
sales revenue - cost of sales
Operating profit
gross profit - overheads
Net profit
operating profit - finance costs
Gross profit margin
(gross profit/ sales revenue) x100
Current ratio
current assets/ current liabilities
Acid test ratio
(current assets - stock) / current liabilities
Productivity
output per period/ no.of employees
Capacity utilisation
(actual output/ maximum possible output) x100
ARR
(net return from project/ no.of years)/ initial cost of project x100
Payback period
amount invested/ annual cash flow
Present value
cash flow x discount factor
Gearing
non current liabilities/ capital employed x100
ROCE
operating profit/ capital employed x100
Labour turnover
(no.of staff leaving in a period of time/ avg no.of staff employed over period of time) x100
Labour retention
(no.of employees remaining/ avg no.of employees over same period of time) x100
Absenteeism
(no.of staff absent over period of time/ avg no.of employees over same period of time) x100
Mark up
profit per item - cost per item x100
