formulas Flashcards

1
Q

revenue

A

selling price per unit x number of units sold

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2
Q

variable costs

A

variable clot per unit x quantity units sold

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3
Q

total costs

A

fixed + variable costs

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4
Q

profit

A

total revenue - total costs
total contribution - fixed costs

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5
Q

market capitailisation

A

number of issues shared x current share price

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6
Q

expected value of a decision with two possible outcomes

A

(pay off A x probability7 of A) + (pay off 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 the market)
x 100

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9
Q

market share (%)

A

sales of one product or brand or business / total sales in the market
x 100

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10
Q

added value

A

sales revenue - costs of brought-in good and services

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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 outputs

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13
Q

capacity utilisation %

A

actual output / maximum possible output

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14
Q

return on investment

A

profit from the investment / cost of investment
x 100

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15
Q

gross profit

A

revenue - cost of sales

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16
Q

profit from operations

A

gross profit - operating expenses

17
Q

profit for a year

A

operating profit + profit from other activities - net finance costs - tax

18
Q

gross profit margin

A

gross profit / revenue
x100

19
Q

operating profit margin

A

operating profit / revenue
x 100

20
Q

profit for year margin

A

profit for year / revenue
x 100

21
Q

variance

A

budgeted figure - actual figure

22
Q

contribuion per unit

A

selling price - variable cost per unit

23
Q

total contribution

A

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

24
Q

break even output

A

fixed costs / contribution per unit

25
margin of safety
actual level of output - break even level of output
26
labour turnover
number of staff leaving / number of staff employed x100
27
employee costs as percentage of turnover
employee costs / turnover x 100
28
labour costs per unit
labour costs / units of output
29
return on capital employed
operating profit / (total equity + non-current liabilities) x 100 where total equity + non-current liabilities = capital employed
30
current ratio
current assets / current liabilities
31
gearing %
non-current liabilities / total equity + non-current liablilities x 100 where total equity + non-current liabilities = capital employed
32
payables days
payables / cost of sales x 365
33
receivables days
receivables / cost of sales x 365
34
inventory turnover
cost of sales / average inventories held
35
average rate of return
average annual return / initial cost of profit x 100