# Formulas Flashcards

1
Q

Revenue

A

Selling price x number of units sold

2
Q

Variable costs

A

Variable cost per unit x units sold

3
Q

Total Costs

A

Fixed costs + variable costs

4
Q

Profit

A

Total revenue - total costs
OR
total contribution - fixed costs

5
Q

Market cap

A

Shares issued x share price

6
Q

Net gain

A

Expected value - initial cost of decision

7
Q

Market growth

A

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

8
Q

Market share

A

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

9
Q

A

Sales revenue - cost of bought in goods and services

10
Q

Labour productivity

A

Output/ number of employees

11
Q

Unit costs

A

Total costs / number of units of output

12
Q

Capacity utilisation

A

Actual output/maximum possible output x100

13
Q

Return in investment

A

Profit from the investment / cost of the investment x100

14
Q

Gross profit

A

Revenue - cost of sales

15
Q

Operating profit

A

Gross profit - operating costs

16
Q

Profit for the year

A

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

17
Q

GPM

A

Gross profit/revenue x100

18
Q

OPM

A

Operating profit/ revenue x100

19
Q

PFTYM

A

Profit for the year / revenue x100

20
Q

Variance

A

Budgeted figure - actual figure

21
Q

Contribution per unit

A

Selling price - variable costs per unit

22
Q

Total contribution

A

Contribution per units x units sold

OR

Total revenue - total variable costs

23
Q

Break even output

A

Fix3d costs / contribution per unit

24
Q

Margin of safety

A

Actual level of output - break even output

25
Q

Labour turnover

A

Staff leaving / number of staff employed

26
Q

Employee retention rate

A

Number of employees who remained / number of employees

27
Q

Employee costs as a percentage of turnover

A

Employee costs / turnover x100

28
Q

Labour costs per unit

A

Labour costs / units of output

29
Q

ROCE

A

Operating profit / total equity + non current liabilities x100

30
Q

Capital employed

A

Total equity + non current liabilities

31
Q

Current ratio

A

Current assets / current liabilities

32
Q

Gearing

A

Non current liabilities / total equity + non current liabilities

33
Q

Payable days

A

Payables / cost of sales x 365

34
Q

Receivable days

A

Receivables / revenue x 365

35
Q

Inventory turnover

A

Costs of sales / average inventories held

36
Q

Average rate of return

A

Average annual return / initial cost of project x100