Formulas Flashcards
Revenue
selling price per unit x quantity of units sold
Total Variable Costs
variable cost per unit x number of units sold
Total Costs
fixed costs + variable costs
Profit
total revenue - total costs
Market Capitalisation
number of issued shares x current share price
Market Growth (%)
new market size - old market size / old market size x 100
Market Share (%)
sales / total market size x 100
Sales Growth (%)
sales this year - sales last year / sales last year x 100
Price Elasticity of Demand
% change in quantity demanded / % change in price
Income elasticity of demand
% change in quantity demanded / % change in real income
Added Value
sales revenue - cost of bought-in goods and services
Capacity Utilisation (%)
output / capacity x 100
Unit Cost
total costs / units output
Labour Productivity
output per period / number of employees
Return on Investment (£)
financial gain from investment - cost of investment
Return on Investment (%)
return on investment (£) / cost of investment (£)
Percentage change in profit
current year’s profit - previous year’s profit / previous year’s profit x 100
Gross Profit
sales revenue - cost of sales
Operating Profit
sales revenue - cost of sales - operating expenses
Profit of the Year
operating profit + other profit + net finance costs - tax
Gross Profit Margin (%)
gross profit / sales revenue x 100
Operating Profit Margin (%)
operating profit / sales revenue x 100
Profit of the Year Margin (%)
profit of the year / sales revenue x 100
Contribution per unit
selling price per unit - variable costs per unit
Total contribution
total revenue - total variable costs OR contribution per unit x number of units sold
Break-even output
fixed costs / contribution per unit
margin of safety
actual output - break-even output
Labour Productivity
output per period / number of employees
Labour Cost per unit
labour costs / units of output
Employee costs as a % of turnover
employee costs / sales turnover x 100
Labour Turnover (%)
number of staff leaving / average number of staff employed
Labour Retention (%)
number of staff employed at end of period - number of leavers / number of staff employed at the end of period x 100
Percentage Change
new figure - previous figure / previous figure x 100
New Figure
percentage change x previous figure / 100 + previous figure
