Year 1 & 2 Formulas Flashcards
What’s the formula for Revenue (Sales or Turnover) ?
Selling price per unit × Number of units sold
What’s the formula for Variable Costs (Total variable costs) ?
Variable cost per unit × Number of units sold
What’s the formula for Total Costs ?
Fixed costs + Variable costs
What are the two formulas for Profit ?
Total revenue − Total costs OR
Total contribution − Fixed costs
What is the formula for Market Capitalisation ?
Number of issued shares × Current share price
What is the formula for Expected Value ?
(Pay-off of A × probability of A) + (Pay-off of B × probability of B)
What is the formula for Market Growth (%) ?
( Change in the size of the market over a period
/ Original size of the market ) × 100
What is the formula for Market Share (%) ?
( Sales of one product OR brand OR business /
Total sales in the market ) × 100
What is the formula for Added Value ?
Sales revenue − costs of goods or services
What is the formula for Labour Productivity ?
Output over a time period / Number of employees
What is the formula for Unit Costs (average costs) ?
Total costs / Number of units of output
What is the formula for Capacity Utilisation (%) ?
( Actual output / Maximum possible output ) × 100
What is the formula for Return on Investment (%) ?
( Profit from the investment / Cost of the investment ) × 100
What is the formula for Gross Profit ?
Revenue − Cost of Sales
What is the formula for Operating Profit ?
Gross profit − Operating Expenses
What is the formula for Profit for the Year ?
Operating profit + Profit from other activities − Net finance costs − Tax
What is the formula for Gross Profit Margin (%) ?
( Gross profit / Revenue ) × 100
What is the formula for Operating Profit Margin (%) ?
( Operating profit / Revenue ) × 100
What is the formula for Profit for the Year Margin (%) ?
( Profit for year / Revenue ) × 100
What is the formula for Variance?
Budgeted figure – actual figure
What is the formula for Contribution Per Unit ?
Selling price − Variable costs per unit
What are the two formulas for Total Contribution ?
Contribution per unit x NO. units sold
OR
Total revenue - Total variable costs
What is the formula for Break-even Output ?
Fixed costs / Contribution per unit
What is the formula for Margin of Safety ?
Actual level of output − Break-even level of output
What is the formula for Labour Turnover ?
( Number of staff leaving / Number of staff employed by the business ) × 100
What is the formula for Employee retention rate (%) ?
( Number of employees who remained with the business for the whole period of time / Number of employees at start of the time period ) ×100
What is the formula for Employee costs as percentage of turnover ?
( Employee costs / Turnover ) × 100
What is the formula for Labour Cost Per Unit ?
Labour costs / Units of output
What is the formula for Return on capital employed (ROCE)(%)
( Operating profit / Total equity + non-current liabilities ) × 100
What is the formula for Current Ratio ?
Current assets / Current liabilities
What is the formula for Gearing ?
( Non-current liabilities / Total equity + non-current liabilities ) ×100
What is the formula for Payables Days ?
( Payables / Cost of sales ) × 365
What is the formula for Receivables Days ?
( Receivables / Revenue ) × 365
What is the formula for Inventory Turnover ?
Cost of sales / Average inventories held
What is the formula for Average rate of return (%)
( Average annual return / Initial cost of project ) × 100
