Formulas Flashcards

1
Q

revenue

A

selling price per unit x number of units sold

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2
Q

total variable costs

A

variable costs per unit x number of units sold

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3
Q

total costs

A

fixed costs + variable costs

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4
Q

profit (2)

A

total revenue - total costs
OR
total contribution - fixed costs

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5
Q

market capatalisation

A

number of issued shares x current share price

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6
Q

expected value of a decisions with two possible outcomes

A

(pay-off of A x probability of A) + (pay-off of B x probability of B)

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7
Q

net gain

A

expected value - initial cost of decision

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8
Q

market growth (%)

A

change in size of market over a period / original size of market
x100

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9
Q

market share (%)

A

sales of one product OR brand OR business / total sales in the market
x100

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10
Q

added value

A

sales revenue - costs

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11
Q

labour productivity

A

output over a time period / number of employees

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12
Q

unit costs (average costs)

A

total costs / number of units of output

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13
Q

capacity utilisation (%)

A

actual output / maximum possible output
x100

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14
Q

return on investment (%)

A

profit from investment / cost of investment
x100

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15
Q

gross profit

A

revenue - cost of sales

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16
Q

operating profit

A

gross profit - expenses

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17
Q

profit for the year (net profit)

A

operating profit - interest and taxation

18
Q

gross profit margin (%)

A

gross profit / revenue
x100

19
Q

operating profit margin (%)

A

operating profit / revenue
x100

20
Q

net profit margin (%)

A

profit for the year (net profit) / revenue
x100

21
Q

variance

A

budgeted figure - actual figure

22
Q

contribution per unit

A

selling price - variable costs per unit

23
Q

total contribution (2)

A

contribution per unit x units sold
OR
total revenue - total variable costs

24
Q

breakeven output

A

fixed costs / contribution per unit

25
margin of safety
actual level of output - breakeven level of output
26
labour turnover (%)
number of staff leaving / number of staff employed by the business x100
27
employee retention rate (%)
number of employees with 1+ years service / total number of employees x100
28
employee costs as a percentage of turnover (%)
employee costs / turnover x100
29
labour costs per unit
labour costs / units of output
30
return on capital employed (ROCE) (%)
operating profit / total equity + non current liabilities x100
31
capital employed
total equity + non current liabilites
32
current ratio
current assets / current liabilities
33
gearing (%)
non current liabilities / total equity + non current liabilities x100
34
payables days
payables / cost of sales x365
35
recievables days
recievables / revenue x365
36
inventory turnover
cost of sales / average inventories held
37
average rate of return (ARR) (%)
average annual return / initial cost of project x100
38
income elasticity of demand
percentage change in quantity demanded / percentage change in income
39
price elasticity of demand
percentage change in quantity demanded / percentage change in price
40
absenteeism
number of absent days/ number of available work days in a given period x100