Formulas Flashcards
revenue
selling price per unit x number of units sold
total variable costs
variable costs per unit x number of units sold
total costs
fixed costs + variable costs
profit (2)
total revenue - total costs
OR
total contribution - fixed costs
market capatalisation
number of issued shares x current share price
expected value of a decisions with two possible outcomes
(pay-off of A x probability of A) + (pay-off of B x probability of B)
net gain
expected value - initial cost of decision
market growth (%)
change in size of market over a period / original size of market
x100
market share (%)
sales of one product OR brand OR business / total sales in the market
x100
added value
sales revenue - costs
labour productivity
output over a time period / number of employees
unit costs (average costs)
total costs / number of units of output
capacity utilisation (%)
actual output / maximum possible output
x100
return on investment (%)
profit from investment / cost of investment
x100
gross profit
revenue - cost of sales
operating profit
gross profit - expenses
profit for the year (net profit)
operating profit - interest and taxation
gross profit margin (%)
gross profit / revenue
x100
operating profit margin (%)
operating profit / revenue
x100
net profit margin (%)
profit for the year (net profit) / revenue
x100
variance
budgeted figure - actual figure
contribution per unit
selling price - variable costs per unit
total contribution (2)
contribution per unit x units sold
OR
total revenue - total variable costs
breakeven output
fixed costs / contribution per unit
margin of safety
actual level of output - breakeven level of output
labour turnover (%)
number of staff leaving / number of staff employed by the business
x100
employee retention rate (%)
number of employees with 1+ years service / total number of employees
x100
employee costs as a percentage of turnover (%)
employee costs / turnover
x100
labour costs per unit
labour costs / units of output
return on capital employed (ROCE) (%)
operating profit / total equity + non current liabilities
x100
capital employed
total equity + non current liabilites
current ratio
current assets / current liabilities
gearing (%)
non current liabilities / total equity + non current liabilities
x100
payables days
payables / cost of sales
x365
recievables days
recievables / revenue
x365
inventory turnover
cost of sales / average inventories held
average rate of return (ARR) (%)
average annual return / initial cost of project
x100
income elasticity of demand
percentage change in quantity demanded / percentage change in income
price elasticity of demand
percentage change in quantity demanded / percentage change in price
absenteeism
number of absent days/ number of available work days in a given period
x100
