Calculations Flashcards
(33 cards)
Profit: gross profit
Revenue - costs
Profit: operating profit
Gross profit - expenses
Profit: profit for the year
Operating profit - taxes
Profit: gross profit margin
(Gross profit / revenue) x 100
Profit: operating profit margin
(Operating profit / revenue) x 100
Profit: profit for the year margin
(Profit for the year / revenue) x 100
Capital employed
Total assets / current liabilities
Ratio: current ratio
Current assets / current liabilities
Ratio: gearing
Non-current liabilities / capital employed
Ratio: inventory turnover
Cost of goods sold / average inventory
Ratio: payable days
(Payables / cost of sales) x 365
Ratio: receivables days
(Receivables / revenue) x 365
Break even: output
Fixed costs / (sales price per unit - variable cost per unit)
Break even: margin of safety
Actual sales - break even sales
Costs: total costs
Fixed costs + variable costs
Costs: variable costs
Total costs – fixed costs
Investment appraisal: ARR (average rate of return)
(Total net cash flow/ number of years) / initial cost x100
Investment appraisal: NPV (net present value)
(Cash flow / (1+i)^t) - initial investment
i = discount rate
t = time period
Present value - cost of investment
Investment appraisal: payback
Initial investment / cash flow per year
Labour: cost per unit
Total labour costs / total units produced
Labour: employee cost as a percentage of turnover
(Total employee costs / total revenue) x 100
Labour: productivity
Total output / number of employees
Labour: turnover
(Staff leaving / average number of staff) x 100
Capacity utilisation
(Actual output / potential total output) x 100
