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Maths In Business > Maths > Flashcards

Maths Flashcards

1
Q

How do you calculate a percentage change?

A

New - old/ old x 100

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2
Q

How do you calculate a new figure?

A

Percentage change x old/ 100 + previous figure

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3
Q

How do you calculate profit for the year?

A

Operating profit + other profit - net finance costs - tax

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4
Q

How do you calculate profit for the year margin?

A

Profit for the year / sales revenue x100

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5
Q

How do you calculate gross profit?

A

Sales revenue - cost of sales

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6
Q

How do you calculate gross profit margin

A

Gross profit / sales revenue x 100

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7
Q

How do you calculate operating profit

A

Sales revenue - cost of sales - operating expenses

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8
Q

How to calculate operating profit margin

A

Operating profit / sales revenue x 100

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9
Q

How do you calculate current ratio (liquidity)

A

Current assets / current liabilities

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10
Q

Acid test

A

Current assets - stock / current liabilities

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11
Q

Gearing ratio

A

Non-current liabilities / total equity + non current liabilities x 100

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12
Q

ROCE

A

Operating profit / total equity + non-current liabilities x 100

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13
Q

Payables days

A

Payables (current liabilities or creditors) / cost of sales x 365

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14
Q

Receivables days

A

Receivables (current assets or debtors) / sales revenue x365

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15
Q

Inventory turnover

A

Cost of sales / cost of average stock held

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16
Q

Average rate of return

A

Total net profit / no. of years / initial cost x100

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17
Q

Net present value

A

Net return for each year x discount factor

Add all net return x discount factors, for each year up

Then minus the cost of the initial investment

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18
Q

Payback

A

Amount still needed to payback / amount paid back in that year x 12

Remember to do the cumulative chart

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19
Q

Labour turnover (%)

A

Number of staff leaving during the year / average number of staff employed during the year x 100

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20
Q

Labour productivity

A

Output per period / number of employees

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21
Q

Labour retention

A

Number of staff employed at end of period - number of leavers / number of staff employed at end of period X100

Low retention means the company only keeps a small % of their employees

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22
Q

Employee costs as a % of turnover

A

Employee costs / sales turnover X100

23
Q

Labour cost per unit

A

Labour costs / units of output

24
Q

Unit costs

A

Total costs of production / units output

25
Q

Capacity

A

The maximum output with the resources currently available

26
Q

Capacity utilisation

A

Output / capacity X100

27
Q

Re-order level

A

Lead time (in days) X average daily usage + buffer stock level

28
Q

Break even output

A

Fixed costs / contribution per unit

29
Q

Margin of safety

A

Actual output - break even output

30
Q

Contribution per unit

A

Selling price - unit variable cost

31
Q

Total contribution

A

Total revenue - total variable costs

OR

Contribution per unit X number of units sold

32
Q

Return on investment

A

Return on investment / cost of investment X100

33
Q

Price elasticity of demand

A

%change in quantity demanded / %change in price

34
Q

Income elasticity of demand

A

%change in quantity demanded / %change in real income

35
Q

Total costs

A

Fixed costs + variable costs

36
Q

Profit

A

Total revenue - total costs

OR

Total contribution - fixed costs

37
Q

Variable costs (total variable costs)

A

Variable cost per unit x number of units sold

38
Q

Total revenue

A

Selling price per unit x number of units sold

39
Q

Market capitalisation

A

Number of issues shares x current share price

40
Q

Market size (volume)

A

Quantity of goods and services produced in a particular market / a period of time (usually one year)

41
Q

Market size (value)

A

Sales revenue in a market / time period (usually one year)

42
Q

Sales volume

A

Quantity of G&S produced by a business / time period (usually a year

43
Q

Sales value

A

Sales revenue of a business / time period (usually one year)

44
Q

Market share

A

Sales of business / total sales in market X100

45
Q

Added value

A

Sales revenue - cost of bought in G&S

46
Q

Convert between currencies

E.g. €1.41 to £1

How to go from € to £

A

Divide the euros by 1.41

47
Q

Convert between currencies

E.g. €1.41 to £1

How to go from £ to €

A

Multiply the pounds by 1.41

48
Q

+ of payback

A

Easy

Quick

Simple

Help with cash flow

49
Q
  • payback
A

Value of money changes over time
So doesn’t consider time value of money

Encourages short termism

Based on estimates

50
Q

+ of NPV

A

Considers time value of money

Helps with decision making as businesses can reject projects with a negative NPV

51
Q
  • of NPV
A

More complicated

Discount rates are estimated

52
Q

+ of ARR

A

Tells you how much on average you’ll get back each year

Quick

Easy

Simple

53
Q
  • of ARR
A

Doesn’t consider time value of money

Based on estimates

Doesn’t tell you how much each year specifically, only on average each year

54
Q

Total float time

A

LFT - duration - EST

Maths In Business (1 decks)

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