KEY CALCULATIONS Flashcards
How do you calculate total costs?
Fixed Costs + Variable costs
How do you calculate profit?
Total revenue-Total Costs
How do you calculate total variable costs?
variable costs per unit x number of units sold
How do you calculate total revenue?
selling price per unit x number of units sold
How do you calculate market capitalisation?
Number of issued shares x current share price
How do you calculate Net gain on in a decision tree?
Expected value - initial cost of decision
How do you calculate market growth in a year?
Change is size of the market between year (X-1) and year X ÷ Size of the market in year (X-1) X100
How do you calculate sales growth in a year?
Change in sales of products or businesses between year (X-1) and year X ÷ Size of the market in year (X-1) X100
How do you calculate market share?
Sales of one product/brand/business ÷ Total sales in the marker X 100
How do you calculate price elasticity of demand?
Percentage change in quantity demand ÷ Total sales in the marker x100
How do you calculate Labour productivity?
output per time period ÷ number of employees
How do you calculate unit costs?
Total cost of production ÷ number of units of output produced
How do you calculate capacity utilisation?
Actual output ÷ max possible output X100
How do you calculate return on investment?
Return on investment ÷ Cost of investment X100
How do you calculate Gross profit?
Sales revenue - cost of sales
How do you calculate Operating profit?
Sales revenue - Cost of sales - operating expenses
How do you calculate Profit for the year?
Operating profit + Other profit - net finance costs - tax
How do you calculate contribution per unit?
Selling price - variable cost per unit
How do you calculate total contribution?
total revenue - total variable costs
How do you calculate BEO?
Fixed costs ÷ Contribution per unit
How do you calculate margin of safety ?
Actual level of output - BE level of output
How do you calculate gross profit margin?
Gross profit ÷ sales revenue X100
How do you calculate labour turnover?
number of staff leaving during the year ÷ average number of staff employed during the year x 100
How do you calculate employee retention rate?
Num of employees at end of period - number of leave÷ num of employees at end of period X100
How do you calculate Labour costs per unit?
Labour costs ÷ unit of output
How do you calculate ROCE?
Operating profit ÷ total equity + non current liabilities X100
How do you calculate current ratio?
Current assets ÷ current liabilities
How do you calculate Gearing?
Non current liabilities ÷ total equity + non current liabilities X100
How do you calculate Payable days?
Payables ÷ cost of sales x365
How do you calculate receivable days?
receivables ÷ sales revenue x365
How do you calculate Inventory turnover ?
cost of goods sold ÷ average inventories held
How do you calculate average rare of return?
num of years ÷ initial cost of project x100
