formulas for business Flashcards by ben mucklow | Brainscape

Q

formula for total costs

A

fixed costs + variable costs

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Q

formula for unit costs

A

total costs / output

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Q

formula for revenue

A

price x quantity sold

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Q

formula for contribution per unit

A

price - variable costs

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Q

formula for break even

A

fixed costs / contribution

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Q

formula for margin of safety

A

actual sales - break even sales

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Q

formula for average rate of return

A

annual average profit / cost of investment x100

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Q

formula for net cash flow

A

total inflows - total outflows

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Q

formula for gross profit

A

sales revenue - cost of sales

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Q

formula for gross profit margin

A

gross profit / sales x100

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Q

formula for operating profit

A

gross profit - expenses

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Q

formula for profit before tax

A

operating profit - finance costs

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Q

formula for retained profit

A

net profit - tax and dividends

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Q

formula for net current assets

A

current assets - current liabilities

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Q

formula for net assets

A

total assets - current liabilities - non current liabilities

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Q

formula for straight line depreciation

A

initial costs - residual value / life of asset

Q

formula for current ratio

A

current assets / current liabilities

Q

formula for acid test

A

current assets - inventory / current liabilities

Q

formula for gearing

A

non current liabilities / capital employed x 100

Q

formula for the debt to equity ratio

A

debt / equity x100

Q

formula for interest cover

A

operating profit / interest payable

Q

formula for asset turnover

A

revenue / non current assets

Q

formula for stock turnover

A

cost of stock / average stock

Q

formula for debtor days

A

trade receivables / revenue x 365

Q

formula for creditor days

A

trade payables / revenue x 365

Q

formula for net profit

A

total sales - total expenses

Q

formula for net profit margin

A

net profit / sales x 100

Q

formula for return on capital employed

A

operating profit / capital employed x100

Q

formula for return on equity

A

profit for the year / shareholder equity

Q

formula for dividend per share

A

total dividends paid / number of shares issued

Q

formula for dividend yield

A

dividend per share /market price of share x 100

Q

formula for earnings per share

A

profit for the year / number of shares issued

Q

formula for price elasticity

A

% change in quantity demanded / %change in price

Q

formula for income elasticity

A

% change in demand / % change in income

Q

formula for cross elasticity

A

% change in demand for product A / % change in price for product B