Formulas Flashcards
(40 cards)
Market growth (%)
Change in size of market over a period / original size of market
x 100
Market Share (%)
Sales / Total sales in market
x 100
Market size
Sales in industry x Selling price
Revenue
Selling price per unit x Units sold
Variable costs
Variable cost per unit x Units sold
Total costs
Fixed costs + Variable costs
Profit
Total revenue - Total costs
Contribution per unit
Selling price - Variable cost per unit
Break-even output (units)
Fixed costs / Contribution per unit
Margin of safety
Actual level of output - Break-even level of output
Net cash flow
Revenue - Expenses
Inflows - outflows
Closing balance
Opening balance + Net cash flow
Opening balance
Previous closing balance
Gross profit
Revenue - Cost of sales (direct costs)
Net profit
Gross profit - Total expenses (indirect costs)
Retained profit
Net profit - Tax and Dividends
Gross profit margin (%)
Gross profit / Revenue
x100
Net profit margin (%)
Net profit / Revenue
x 100
Absenteeism (%)
Total start absence days over a year / Total number of working days that should have been worked
x100
Labour productivity
Output over a time period / (average) number of employees over a time period
Labour turnover (%)
Number of staff leaving / (average) number of staff employed by business
x 100
Added value
Price product or service is sold at - cost of production
Capital productivity
Output / Capital employed
Capacity utilisation (%)
Actual output / Maximum possible output
x 100
