Calculations Flashcards
Market Capitalisation
number of shares x current share price
Market Growth (%)
(change in size of the market over a period / original size of the market) x 100
Market Share
(sales of one product/business/brand / total sales in the market) x 100
expected value of a decision tree (2 possible outcomes)
(Pay-off of A x probability of A) + (Pay-off of B x probability of B)
net gain of decision tree
EV (expected value) - initial cost of decision
added value
= sales revenue - cost of brought in goods and services
gross profit
revenue - cost of sales
operating profit
gross profit - expenses
profit of the year
operating profit - tax
contribution per unit
selling price - VC
break even output
fixed costs / contribution per unit
margin of safety
actual level of output - break even level of output
capacity utilisation
(actual output / maximum output) x 100
labour turnover
(no. staff leaving / number of staff employed) x 100
return on investment ?
(profit from investment / cost of investment) x 100
variance
budgeted figure - actual figure
return on capital employed (ROCE)
(operating profit / total equity + non-current liabilities) x 100
net present value ?
1) cash flow x discount factor
2) add them all up
3) sum of present values - cost of investment
average rate of return (ARR) ?
(average annual return / initial cost of project) x 100
inventory turnover ?
cost of sales / average inventories held
receivables days ?
(receivables / revenue) x 365
payables days ?
(payable / costs of sales) x 365
gearing ratio ?
non-current liabilities / (total equity + non-current liabilities) x 100
current ratio ?
current assets / current liabilities
