Calculations Flashcards
(31 cards)
Average rate of return
average net return/investment x 100
Payback
Amount remaining to recover divided by amount recovered in the following year x 365(days) OR 12(months)
Profit
Total revenue - total costs = profit
Total revenue
Price x quantity sold
Total costs
Total variable costs + total fixed costs
Market share
Total company sales divided by total market sales x 100
Market and sales growth
Increase in the market size/sales (difference) divided by original size/sales x100
Labour productivity
Output per time period divided by number of employees
Unit costs
Total costs of production divided by number of units of output produced
Capacity utilisation
Actual output in a given time period divided by max possible output in a given time period x 100
In a cash flow forecast how do you calculate Net Cash flow
Cash inflows - cash outflows
Return on investment
Operating profit divided by capital invested x100
Closing balance
Net cash flow + opening balance
Break-even point
Fixed costs divided by contribution per unit
Gross profit margin
Gross profit divided by sales revenue x 100
Operating profit margin
Operating profit divided by sales revenue x 100
Profit for the year margin
Profit for the year divided by sales revenue x 100
Employee costs as a percentage of turnover
Employee costs divided by sales turnover x 100
Labour turnover
Number of staff leaving in a year divided by average number of staff x100
Labour retention
Average number employed for one year divided by average number of staff
Return on capital employed
Operating profit divided by capital employed
Current ratio
Current assets divided by current liabilities
Gearing ratio
Non-current liabilities divided by (total equity + non-current liabilities) x 100
Inventory turnover ratio
Cost of sales divided by cost of average stock held
