Flashcards in Formulae Deck (25):

1

## Total costs formula

### Total costs = variable costs + fixed costs

2

## Total revenue formula

### Total revenue = average selling price x quantity sold

3

## Ordinary share capital formula

### Ordinary share capital = number of shares sold x price they were sold for

4

## Market capitalisation formula

### Market capitalisation = current share price x number of shares

5

## PED formula

### PED = % change in quantity demanded ÷ % change in price

6

## YED formula

### YED = % change in demand ÷ % change in income

7

## Unit cost formula

### Unit cost = total cost ÷ units of output

8

## Capacity utilisation formula

### Capacity utilisation = (actual level of output ÷ maximum possible output) x 100

9

## Labour productivity formula

### Labour productivity = output per period ÷ number of employees at work

10

## Debt to equity ratio formula

### Debt to equity ratio = (Debts ÷ long term funding) x 100

11

## Return on investment formula

### ROI = ((financial gains from investment - total cost of investment) ÷ initial cost of investment) x 100

12

## Profit formulae

###
Profit = revenue - costs

Profit = total contribution - fixed costs

13

## Contribution per unit formula

### Contribution per unit = selling price - variable costs per unit

14

## Total contribution formulae

###
Total contribution = contribution per unit x units sold

Total contribution = sales revenue - total variable costs

15

## Break-even point formula

### Break-even point = fixed costs ÷ contribution per unit

16

## Target profit output formula

### Target profit output = (fixed costs + target profit) ÷ contribution per unit

17

## Length of cycle formula

### Length of cycle = length of time goods are held in stock + time taken for receivables to be paid - period of credit received from suppliers

18

## Gross profit margin formula

### Gross profit margin = (gross profit ÷ revenue) x 100

19

## Gross profit formula

### Gross profit = revenue - cost of sales

20

## Net profit formula

### Net profit = gross profit - expenses

21

## Operating profit margin formula

### Operating profit margin = (operating profit ÷ revenue) x 100

22

## Profit for year margin formula

### Profit for year margin = (profit for ÷ revenue) x 100

23

## Labour turnover formula

### Labour turnover = (number of employees leaving during period ÷ average number employed during period) x 100

24

## Retention rate formula

### (Number of employees with X years service ÷ overall workforce numbers) x 100

25