Formulas Flashcards
Revenue
selling price per unit X number of units sold
variable costs
cost per unit X number of units sold
total costs
fixed costs + variable costs
profit
total revenue - total costs OR
total contribution - fixed costs
market capitalisation
share price X number of shares
expected value
(pay off of A x probability of A) + (pay off of B x probability of B)
net gain
expected value - initial cost of decision
market growth (%)
(change in size of market/original size of market) x100
market share (%)
(sales of one product OR brand Or business/total sales in the market) x100
added value
sales revenue - costs of bought in goods/services
labour productivity
output over a time period/number of employees
unit costs
total costs/number of units of output
capacity utilisation (%)
(actual output/maximum possible output) x100
return on investment (%)
(profit from investment (£) /cost of investment (£)) x 100
gross profit
revenue - cost of sales
operating profit
gross profit - operating expenses
profit of the year
operating profit + profit from other activities - net finance costs - tax
gross profit margin (%)
(gross profit / revenue) x 100
operating profit margin (%)
(operating profit / revenue) x 100
profit of the year margin (%)
(profit of the year / revenue) x 100
variance
budgeted figure - actual figure
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit x units sold
OR
total revenue - total variable costs
break even output
fixed costs / contribution per unit
OR
fixed costs / selling price per unit - variable costs per unit
margin of safety
actual level of output - break even level of output
labour turnover (%)
(number of staff leaving / number of staff employed) x 100
employee retention (%) in a time period
(number of employees who remained in the period / number of employees at the start of the period) x 100
employee costs as a % of turnover
(employee cost / turnover) x 100
labour cost per unit
labour costs / units of output
return on capital employed (ROCE) (%)
(net profit (£) / capital employed (£)) x 100
current ratio
current assets / current liabilities
gearing (%)
(non current liabilities / total equity + non-current liabilities) x 100
OR
non-current liabilities / capital employed
payables days
(payables / cost of sales) x 365
recievables days
(recievables / revenue) x 365
inventory turnover
cost of sales / average inventories held
average rate of return (%)
(average annual return (£) / initial cost of project (£)) x 100
