formulas Flashcards
revenue
price X quantity
total costs
fixed costs + total variable costs
unit cost per unit
total cost / output
variable cost per unit
total variable cost / quantity
profit
revenue - total costs
gross profit
revenue - variable costs
net profit
revenue - total costs
OR
gross profit - other expenses
profit for the year
all income - all expenditures
gross profit margin
gross profit / revenue X 100
net profit/operating margin
net profit / revenue X 100
profit for the year margin
profit for the year / revenue X 100
return on investment
net profit / capital invested X 100
gearing
long term loans / capital employed X 100
market capitalisation
share price X number of issued shares
contribution per unit
selling price per unit - unit variable costs
total contribution
contribution per unit X number of items sold
profit made from total contribution
total contribution - fixed costs
breakeven level of output
fixed costs / contribution per unit
margin of safety
actual level of output - breakeven point
capacity utilisation
current output / maximum output X 100
labour productivity
total output / the number of workers
labour cost per unit
total labour costs / output
labour cost as a percentage of revenue
labour cost / revenue X 100
labour turnover
number of staff leaving per year / average number of staff employed in a year X 100
labour retention
number of staff employed for a year or more / average number of staff employed in a year X 100
market share by volume
the total number of units sold in a market
market size by value
the number of units X sold by price
market share
sales of firm A / total market size X 100
market growth
change in market size / old market size X 100
percentage change in demand
percentage change in price X PED
percentage change in demand
percentage change in income X YED
percentage change
new - original = difference
difference / original X 100
labour productivity
no of employees per period
= units of output per worker
labour turnover
average no of staff X 100
= % of workers who left per year
retention rates
average no of staff X 100
= employee retention
employee costs as a % of turnover
sales turnover/revenue
X 100
labour cost per unit
total units of output
X 100
labour productivity
number of employees
= units of output per worker
unit costs
units of output
capacity utilisation
maximum possible output per year
X 100
