Formulas

Question 1

current assets

Answer 1

stock +debtors+cash

Question 2

net assets

Answer 2

assets - liabilties

Question 3

total equity

Answer 3

(shareholders funds +long term liabilities)
share capital +reserves/retained profit

Question 4

working capital

Answer 4

assets - liabilities

Question 5

Gross profit margin ?

Answer 5

gross profit /sales revenue x100

Question 6

net profit margin ?

Answer 6

net profit/sales revenue X100

Question 7

ROCE ?

Answer 7

net profit/ capital employed x100

Question 8

current ratio ?

Answer 8

current assets/liabilties =:1

Question 9

gearing ratio?

Answer 9

long term liabilities / shareholders +long term

Question 10

inventory turnover ?

Answer 10

costs of good sold / average inventories held

Question 11

receivable days ?

Answer 11

receivables /revenue x 365

Question 12

payables

Answer 12

payables /cost of sales x 365

Question 13

revenue

Answer 13

price x quality

Question 14

variable costs

Answer 14

variable cost per unit x number of units sold

Question 15

total costs

Answer 15

variable + fixed

Question 16

profit

Answer 16

revenue - costs / contribution - fixed costs

Question 17

market capitalisation

Answer 17

number of issues shared x current share price

Question 18

expected value of a decisions with two outcomes

Answer 18

(pay of A x probality of A ) + ( pay of B x probability of B)

Question 19

net gain

Answer 19

expected value Initial - costs of decisions

Question 20

market growth

Answer 20

change in size of the market over a period /original size of the market. x100

Question 21

market share

Answer 21

sale of one product or brand or business / total sales in the Market. x100

Question 22

added value

Answer 22

sales revenue - costs of brought in goods and services

Question 23

labour productivity

Answer 23

output over a period of time /number of employees

Question 24

unit costs

Answer 24

total costs / number of units of output

Question 25

capacity utilisation

Answer 25

actual output / maximum possible output x 100

Question 26

return on investments

Answer 26

profit from the investments /costs of the investments x100

Question 27

gross profit

Answer 27

revenue - costs of sales

Question 28

operation/net profit

Answer 28

gross profit - operating expenses

Question 29

profit for the year

Answer 29

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

Question 30

profit for the year margin

Answer 30

profit for the year / revenue x 100

Question 31

variance

Answer 31

budgeted - actual

Question 32

contribution per unit

Answer 32

selling price - variable costs per unit

Question 33

total contribution

Answer 33

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

Question 34

breakeven output

Answer 34

fixed costs /contribtion per unit

Question 35

margin of safety

Answer 35

actual level of output - breakeven levels of output

Question 36

labour turnover

Answer 36

number of staff leaving / number of staff. employed by the business x 100

Question 37

employees retention

Answer 37

number of people in the buses who stayed fro the whole period of time / number of employed at the start of the period of time x100

Question 38

employee costs as a percentage turnover

Answer 38

employee costs / turnover x 100

Question 39

labour costs per unit

Answer 39

labour costs /units of output

Question 40

return on capital employment

Answer 40

operating profit //total equity+non current liabiltes (capital employment) x100

Question 41

average rate of return

Answer 41

average annual return / initial cost of project x100