formulas Flashcards

1
Q

profit margin

A

profit /
revenue (x 100)

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2
Q

Return on capital employed (ROCE)

A

operating profit /
Capital employed ( x 100)

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3
Q

Capital employed

A

Equity + long term debt

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4
Q

Inventory turnover

A

cost of sales/
inventory

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5
Q

Recieveable days

A

Trade recieveables/revenue (x365)

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6
Q

Payables days

A

Trade payables / cost of sales (x 365)

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7
Q

Current ratio

A

Current assests / current liabilities :1

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8
Q

Gearing ratio

A

Non current liabilities / capital employed (x 100)

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9
Q

working capital

A

current assets - current liabilities

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10
Q

Average rate of return

A

Net return of project or number of years/ initial cost of project x 100

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11
Q

Labour cost per unit

A

Labour costs/unit of output

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12
Q

Employee cost as a percentage of turnover

A

Employee costs/sales turnover x 100

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13
Q

Employee retention (%) for a time period

A

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

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14
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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15
Q

Profit for year margin (%)

A

Profit for year/sales revenue x 100

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16
Q

Margin of safety

A

Actual level of output - break even level of output

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17
Q

Total contribution

A

Contribution per unit x units produced or sold

18
Q

Total contribution

A

Total revenue - variable costs

19
Q

Contribution per unit

A

Selling price - variable costs per unit

20
Q

Variance

A

Actual - budgeted

21
Q

Profit for the year

A

Operating profit + other profit - net finance costs - tax

22
Q

Gross profit

A

Sales revenue - cost of sales

23
Q

Operating profit

A

Sales revenue - cost of sales - operating costs

24
Q

Return on investment

A

Return on investment/cost of investment x 100

25
Q

Capacity utilisation

A

Actual output in given time period/ maximum output x 100

26
Q

Unit costs

A

Total costs of production/ number of units of output produced

27
Q

Labour productivity

A

Output per time period/ number of employees

28
Q

Added value

A

Sales revenue - cost of brought in goods and services

29
Q

Price elasticity of demand

A

% change in quantity demanded/% change in price x 100

30
Q

Income elasticity of demand

A

% change in quantity demanded/ % change in income x 100

31
Q

Market share (%)

A

Sales of product or brand or biz/ total sales in market x 100

32
Q

Sales growth % in year X

A

Change in sales product between year (X-1) and X/ sales of product in year (X-1) x 100

33
Q

Market growth (%) in year X

A

Change in size of market between year (X-1) and X/ size of market in year (X-1) x 100

34
Q

Net gain (decision tree)

A

Expected value - initial cost of decision

35
Q

Market capitalisation

A

Number of issued shares x current share price

36
Q

Sales revenue or turnover

A

Selling price per unit x number of units sold

37
Q

Total variable costs

A

Variable cost per unit x number of units sold

38
Q

Profit

A

Total revenue - total costs

39
Q

Total costs

A

Fixed + variable costs

40
Q

% change

A

old - new / old x 100