Formulas Flashcards
Revenue (sales or turnover)
Selling price per unit X number of units sold
Variable costs (total variable costs)
Variable cost per unit X number of units sold
Total costs
Fixed cost + variable costs
Profit
Total revenue — total costs
Total contribution— fixed costs
Market capitalisation of a business
Number of issued shares X Current share prices
Expected value
(Outcome A X profitability of A) + (Outcome B X profitability of B)
Net gain
Expected value — initial cost of decision
Market growth (%)
Change in the size of a market
——————————————— X 100
Original size of a market
Market share (%)
Sales of one product/brand/business
————————————————X100
Total sales in a market
Added value
Sales value - costs of brought in goods and services.
Labour productivity
Output over a period of time
———————————————————
Number of employers
Unit costs (average costs)
Total costs
—————————————
Number of units of output
Capacity utilisation (%)
Actual output
——————————X100
Maximum possible output
Return on investment (%)
Profit from the investment (£)
————————————————X100
Cost of the investment (£)
Gross profit
Revenue — cost of sales
Profit from operations (operating profit)
Gross profit -operating expenses
Profit for the year
Operating profit + profit from other activities — net finance costs — tax
Gross profit margin (%)
Gross profit
—————— X 100
Revenue
Operating profit margin (%)
Operating profit
———————— X 100
Revenue
Profit from the year (%)
Profit for the year
————————— X 100
Revenue
Variance
Budgeted figure — actual figure
Contribution per unit
Selling price — variable cost per unit
Total contribution
Contribution per unit X units sold
Total revenue — total variable cost
Break even output
Fixed costs
——————————
Contribution per unit
Margin of safety
Actual level of output — break even level of output
Labour turnover (%)
No. of staff leaving
——————————x100
No. of staff employed
Employee retention rate (%)
No of employees remaining at the business over the period of time
————————————————X100
No of employees at the beginning
Of that period of time
Employees cost (% of turnover)
Employee costs
————————X100
Turnover
Labour cost per unit
Labour cost
—————————
Units of output
Return on capital employed (ROCE %)
Operating profit
————————————————X100
Total equity + non current liabilities
Current ratio
Current assets
——————————
Current liabilities
Gearing (%)
Non-current liabilities
————————————————X100
Total equity + non-current liabilities
Payable days
Payables
—————————X 365
Cost of sales
Receivable days
Receivables
————————X365
Revenue
Inventory turnover
Cost of sales
————————————
Average inventory held
Average rate of return (%)
Average annual return (£)
————————————-
Initial cost of project (£)
