Formulas Flashcards
Revenue
selling price per unit x quantity sold
Total variable costs
Variable cost per unit x number of units sold
Profit
Total revenue - total costs
Total contribution - fixed costs
Total costs
fixed costs + variable costs
Market capitalization
Number of issued shares x current share price
Net gain
EV - initial costs
Expected Value
Probability x pay off (+ 2 together)
Market growth
New market size - old market size / old market size x 100
Market share
sales / total market share x 100
Added value
sales revenue - cost of bought in goods and services
Capacity utilization
output / capacity x 100 (%)
Unit cost
total costs / units output
Labor productivity
output per person / number of employees
Re order level
lead time (days) x average daily usage + buffer stock level
Return on investment
Profit / cost on investment x 100 (%)
gross profit
sales revenue - cost of sales
gross profit margin
gross profit / sales revenue x 100
Net cash flow
Total inflows - total outflows
closing balance
opening balance + net cash flow
opening balance
closing balance of last month
Expected profit / profit budget
Income budget - expenditure budget
contribution per unit
selling price per unit - variable cost per unit
Total contribution
total revenue - variable total costs
OR contribution per unit x number of units sold
Break even output
fixed costs / contribution per unit
Margin of safety
actual output - break even output
Labor turnover
number of staff leaving / average number of staff employed x 100
labor retention
staff employed at end - leavers / employed at the start x 100
net current assets or working capital
current assets - current liabilities
assets employed
total fixed and current assets - total current liabilities
Current ratio
current assets / current liabilities
<1 liquidity problem, there aren’t enough assets to cover liabilities
>1 ideally 1.5 or 2
Return on capital employed
Net profit / total equity + non current liabilities (capital employed / shareholder funds)
Inventory turnover
cost of sales / costs of average stock held
Payables days
payables / cost of sales x 365
receivables days
receivables / sales revenue x 365
Gearing
non current liabilities / total equity + non current liabilities (capital employed) x 100
Cost of sales or purchases
Opening stock + purchases - closing stock
Revenue - gross profit
Net profit margin
Net profit / revenue x 100
Variance
Actual - budgeted
Net profit
Gross profit - cost of sales
Acid test
Current assets - stock / current liabilities
Sales value
Average selling price x number of units sold
Sales volume
Value of sales / average price
