Theme 2 calculations Flashcards
SALES VOLUME
Sales revenues / Price
SALES REVENUE
Price x Quantity
TOTAL COSTS
Fixed costs + Variable costs
TOTAL VARIABLE
Total costs - Fixed costs
OR
Average variable x Output
AVERAGE VARIABLE
Variable costs / Output
PROFIT
Total revenue - Total costs
NET PROFIT
Operating profit - (Interest / Tax)
NET PROFIT MARGIN
(Net profit / Sales revenue) x100
GROSS PROFIT
Sales revenue - Cost of sale
GROSS ROFIT MARGIN
(Gross profit / Sales revenue) x100
OPERATING PROFIT
Gross profit - Expenses
OPERATING PROFIT MARGIN
(Operating profit / Sales revenue) x100
CURRENT RATIO
Current assets / Current liabilities
ROCE RATIO
(Operating profit / Capital employed) x100
CAPITAL EMPLOYED
Total equity + Non-current liabilities
ACID TEST RATIO
(Current assets - Stock) / Current liabilities
WORKING CAPITAL
Current assets - Current liabilities
GEARING RATIO
(Non-current liabilities / Capital employed) x100
PRODUCTIVITY
Output per time period / Input per time period
CAPITAL PRODUCTIVITY
Output per time period / Number of machines
LABOUR PRODUCTIVITY
Output per time period / (Number of workers / Hours worked)
BREAKEVEN
Total fixed costs / Contribution per unit
MARGIN OF SAFETY
Total output - Breakeven point
CONTRIBUTION
Selling price - Variable costs per unit
TOTAL CONTRIBUTION
Contribution per unit x Number of units sold
LABOUR TURNOVER
(Number of employees leaving / Average number of employees) x100
ABSENTEEISM
(Number of work days lost through absence / Total possible days worked) x100
CAPACITY UTILISATION
(Actual output / Maximal output) x100
