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Flashcards in Formulas Deck (36)
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1

Revenue

Selling price x number of units sold

2

Variable costs

Variable cost per unit x units sold

3

Total Costs

Fixed costs + variable costs

4

Profit

Total revenue - total costs
OR
total contribution - fixed costs

5

Market cap

Shares issued x share price

6

Net gain

Expected value - initial cost of decision

7

Market growth

Change in the size of the market/original size of the market x100

8

Market share

Sales of one product OR brand OR business/ total sales in the market x100

9

Added value

Sales revenue - cost of bought in goods and services

10

Labour productivity

Output/ number of employees

11

Unit costs

Total costs / number of units of output

12

Capacity utilisation

Actual output/maximum possible output x100

13

Return in investment

Profit from the investment / cost of the investment x100

14

Gross profit

Revenue - cost of sales

15

Operating profit

Gross profit - operating costs

16

Profit for the year

Operating profit + profit from other activities - net finance costs - tax

17

GPM

Gross profit/revenue x100

18

OPM

Operating profit/ revenue x100

19

PFTYM

Profit for the year / revenue x100

20

Variance

Budgeted figure - actual figure

21

Contribution per unit

Selling price - variable costs per unit

22

Total contribution

Contribution per units x units sold

OR

Total revenue - total variable costs

23

Break even output

Fix3d costs / contribution per unit

24

Margin of safety

Actual level of output - break even output

25

Labour turnover

Staff leaving / number of staff employed

26

Employee retention rate

Number of employees who remained / number of employees

27

Employee costs as a percentage of turnover

Employee costs / turnover x100

28

Labour costs per unit

Labour costs / units of output

29

ROCE

Operating profit / total equity + non current liabilities

30

Capital employed

Total equity + non current liabilities