formulas Flashcards
Revenue
= selling price per unit x number of units sold
variable costs
= variable cost per unit x number of units sold
total cost
= fixed cost + Variable cost
Profit
= Total revenue - total cost
market capatalistaion
= Number of issued shares x Current shares price
net gain
= Expected value - initial cost of decision
market growth
= Change in the size of the market over a period/ original size of the market x 100
market share
= sales of one product/ total sales in the market x 100
added value
= sales revenue - costs of bought- in goods and services
labour productivity
= output over a time period/ number of employees
unit costs
= total costs/ number of units of output
capacity utilisation
= actual output / maximum possible output x 100
return on investment
= profit from the investment/ cost of the investment x 100
gross profit
= revenue - cost of sales
Operating profit
= Gross profit - operating expenses
profit for the year
= operating profit - taxes
Gross profit margin (%)
= Gross profit/ revenue x 100
Operating profit margin (%)
= operating profit/ revenue x 100
Profit for the year margin (%)
= profit for year/ revenue x 100
contribution per unit
= selling price- variable cost per unit
total contribution
= contribution per unit x Unit sold
or
= Total revenue - Total variable cost
break even
= Fixed costs/ Contribution per unit
margin of safety
= Actual level of output - Break even level of output
Labour turnover
= Number of staff leaving / Number of staff employed by the the Business x 100
employee costs as percentage of turnover
= employee costs/ Units of output
Labour cost per unit
= labour costs/ units of output
return on capital employees (ROCE)
= operating profit/ total equity + non- current liabilities x 100
current ratios
= Current assests/ current liabilities
gearing
Non- current liabilities/ total equity + non- current liabilities x 100
where total equity + non current liabilities- capital employed
payable days
= payables/ costs of sales x 365
receivable days
= Receivables/ revenue x 365
Inventory turnover
= costs of sales/average inventories held
average rate of return (%)
= average annual return (£) / Initial cost of project (£) x 100
