Formulas Flashcards

1
Q

Revenue (Sales or Turnover)

A

Selling price per unit x number of units sold

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2
Q

Variable costs (total variable costs)

A

Variable cost per unit x number of units sold

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3
Q

Total costs

A

fixed costs + variable costs

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4
Q

Profit

A

total revenue - total cost

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5
Q

Market capitalisation of a business

A

Number of issued shares x current share price

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6
Q

Added value

A

Sales revenue - costs of bought in goods and services

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7
Q

Labour productivity

A

Output per time period / number of employees

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8
Q

Unit costs (average costs)

A

Total costs / number of units of output

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9
Q

Return on investment (%)

A

Profit from investment / cost of investment x 100

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10
Q

Gross profit

A

Revenue - cost of sales

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11
Q

Profit from operations

A

gross profit - operating expenses

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12
Q

Profit for year

A

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

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13
Q

Gross profit margin (%)

A

Gross profit/sales revenue x 100

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14
Q

Profit from operations margin

A

Operating profit / revenue x 100

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15
Q

Profit for year margin(%)

A

profit for the year/revenue x 100

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16
Q

Variance

A

budgeted figure - actual figure

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17
Q

Contribution per unit

A

Selling price - variable cost per unit

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18
Q

Total contribution

A

Contribution per unit x number of units sold

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19
Q

Break even output

A

Fixed costs / contribution per unit

20
Q

Employee costs as a percentage of turnover

A

Employee costs / sales turnover x 100

21
Q

Labour costs per unit

A

Labour costs / units of output

22
Q

Return on capital employed

A

operating profit / total equity + non current liabilities x 100

23
Q

Labour turnover (%)

A

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

24
Q

Current Ratio

A

current assets / current liabilities

25
Gearing %
Non-current liabilities / Total Equity + Non-current liabilities x 100
26
Payables days
payables/cost of sales x 365
27
Receivable days
Receivables / sales revenue x 365
28
Average rate of return (%)
Average annual return / initial cost of project x 100
29
Gross Profit
net sales - cost of goods sold
30
operating profit
Gross Profit - Expenses
31
Gross Profit Margin
Gross profit/sales revenue x 100
32
Net Profit Margin
Net profit/sales revenue x 100
33
Current Ratio
current assets divided by current liabilities
34
ROCE ratio
Operating profit / capital employed x 100
35
Gearing ratio
non-current liabilities/capital employed x 100
36
Payable Days Formula
(Payables / cost of sales) x 365
37
Receivable days
Receivables / sales revenue x 365
38
Inventory Turnover Ratio
cost of goods sold/average inventory
39
Capital employed
Total equity + non current liabilities
40
Total equity
Retained profit + share capital
41
Net gain
Expected value - initial cost of decision
42
Capacity utilisation (%)
actual output / maximum possible output x 100
43
margin of safety
Actual output - break even output
44
Employee retention rate (%) for a particular time period
Number of employees who remained with the business for the whole period of time / Number of employees at start of time period x 100
45
Inventory turnover
cost of sales / average inventory held
46
Cost of Goods Sold
beginning inventory + purchases - ending inventory