equations Flashcards by hivi faris

Q

market capitalisation

A

number of ordinary issues shares x current price of 1 share

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Q

ordinary share capital

A

number of ordinary issued shares x original price of 1 share

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Q

expected value

A

probability x result

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Q

net gain

A

expected values - initial cost

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Q

total contribution

A

total sales revenue - total variable costs

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Q

contribution per unit

A

selling price per unit - variable cost per unit

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Q

break even

A

fixed costs ÷ contribution per unit

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Q

margin of safety

A

actual output - break even output

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Q

profit

A

margin of safety x contribution per unit

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Q

gross profit

A

total revenue - total cost of sales

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Q

gross profit margin

A

(gross profit ÷ revenue) x100

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Q

operating profit

A

sales revenue - cost of sales and operations

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Q

operating profit margin

A

(operating profit ÷ sales revenue) x100

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Q

net profit

A

total revenue - total costs

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Q

net profit margin

A

(net profit ÷ total revenue) x100

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Q

payable days

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A

(payables ÷ cost of sales) x365

Q

receivable days

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A

(receivables ÷ revenue) x365

Q

return on investment

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A

(investment profit ÷ capital invested) x100

Q

current ratio

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A

current assets ÷ current liabilities

(1.5 to 2.5)

Q

gearing ratio

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A

(non current liabilities ÷ capital employed) x100

(25% to 50%)

Q

capital employed

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A

total equity + non current liabilities

Q

market size

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A

(total sales ÷ market share) x100

Q

market growth

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A

(change in market size ÷ original market size) x100

Q

market share

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A

(firm sales ÷ total market sales) x100

PED

(% change demand ÷ % change price)

IED

(% change demand ÷ % change income)

return on capital employed

(operating profit ÷ capital employed) x100

inventory turnover

cost of goods sold ÷ average inventory held

labour productivity

total output ÷ total number of workers

labour turnover

(employees leaving ÷ total number of employees) x100

retention rate

(staff remaining ÷ original staff) x100

employee cost as a percentage of turnover

(employee cost ÷ revenue) x100

labour cost per unit

labour cost ÷ total output units

unit costs

total production cost ÷ total output units

capacity utilisation

(actual output ÷ maximum possible output) x100

revenue

selling price per unit x number of units sold

total cost

variable cost + fixed cost

total variable cost

variable cost per unit x number of units sold

ARR