Formulas Flashcards
What is the formula for revenue?
Selling price per unit x number of units sold
What is the formula for total variable costs?
Variable costs per unit x number of units sold
What is the formula for total costs?
Fixed costs + variable costs
What is the formula of profit?
Total revenue - total costs
What is the formula of market capitalisation?
Number of issued shares x current share price
What is the formula for expected value on decision tree?
[Pay off A x Probability A] + [Pay off B x Probability B]
What is the formula for net gain on a decision tree?
Expected value - initial cost
What is the formula for market growth?
(Change in the size of the market over a period/original size of market) x 100
What is the formula for market share?
(sales of one product or brand or business / total sales in the market) x 100
What is the formula for added value?
Sales revenue - cost of bought in goods and services
What is the formula for labour productivity?
Output over a time period / number of employees
What is the formula for unit costs?
Total costs / number of units of output
What is the formula for capacity utilisation?
(Actual output / maximum possible output) x 100
What is the formula for return on investment?
(profit from the investment / cost of the investment) x 100
What is the formula for gross profit?
Reveue - cost of sales
What is the formula for profit from operations?
Gross profit - operating expenses
What is the formula for profit for year?
Operating profit + profit from other activities - net finance costs - tax
What is the formula for the profit margins?
(type of profit / revenue) x 100
What is the variance formula?
Budgeted figure - actual figure
What is the formula for contribution per unit?
Selling price - variable costs per unit
What is the formula for total contribution?
Contribution per unit x units sold
OR
Total revenue - total variable costs
What is the formula for break even output?
fixed costs / contribution per unit
What is the formula for margin of safety?
Actual level of output - break even level of output
What is the formula for labour turnover?
(number of staff leaving / number of staff employed by the business) x 100
What is the formula for employee costs as a percentage of turnover?
(employee costs / turnover) x 100
What is the formula for labour costs per unit?
Labour costs / units of output
What is the formula for return on capital employed?
(operating profit / total equity + non current liabilities) x 100
total equity + non current liabilities= capital employed
What is the formula for current ratio?
Current assets / current liabilities
What is the formula for gearing?
(non current liabilities / total equity + non current liabilities) x 100
total equity + non current liabilities = capital employed
What is the formula for payables days?
(payables / cost of sales) x 365
What is the formula for recievables days?
(Recievables / revenue) x 365
What is the formula for inventory turnover?
costs of sales / average inventories held
What is the formula for average rate of return?
(average annual return / initial costs of project) x 100
