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formulas Flashcards

(63 cards)

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1
Q

added value formula

A

Revenue - costs of goods sold = added value

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2
Q

total costs formula

A

total costs = variable + fixed costs

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3
Q

profit formula

A

profit = total revenue - total costs

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4
Q

revenue forumla

A

revenue = price x quantity sold.

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5
Q

added value (transformation process) equation

A

selling price - cost of bought materials

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6
Q

market capitalisation formula

A

share price x no. shares = market capitalisation

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7
Q

dividend yield equation

A

dividend per share / share price (X100)

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8
Q

decision tree: expected value formula

A

Probability x revenue
- Add the expected value for each probability

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9
Q

market share formula

A

Sales of business / Entire sales in market X100

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10
Q

Market growth formula

A

Old sales - New sales X100

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11
Q

Income elasticity of demand (YED) equation

A

YED = % change in demand / % change in income

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12
Q

Price elasticity of demand (PED) formula

A

PED = % change in demand / % change price
above 1 = elastic good (changes)
below 1 = inelastic goof
1 = unitary good ( rare )

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13
Q

Unit cost formula

A

Unit costs = total costs / total units

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14
Q

Quality formula ( terms of deliveries )

A

deliveries on time / total deliveries X100

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15
Q

Capacity utilisation formula

A

Actual level of output / max possible output X100

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16
Q

Labour productivity formula

A

output per period / no. employees = x units per employee

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17
Q

Lead time equation

A

(days between) Order made - order recieved

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18
Q

reorder level formula ( inventory control chart)

A

(lead time x av. daily usage) + Buffer stock = reorder level

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19
Q

Profit formula in terms of contribution

A

Contribution - fixed costs = profit

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20
Q

Break-even formula

A

Fixed costs / contribution per unit = BE (units)

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21
Q

margin of safety formula (breakeven analysis)

A

MOS = Actual output - breakeven output

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22
Q

Net cash flow formula

A

Inflows - outflows = Net CF

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23
Q

return on investment formula

A

(Operating profit x100) / capital invested

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24
Q

Variable costs formula

A

Cost per unit x total no. units = variable costs

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25
Contribution per unit formula
Contribution per unit = Selling price - variable costs per unit
26
Total contribution formula (terms of revenue and costs)
Total revenue - Total variablecosts
27
Total contribution formula
Cont per unit x no. units sold = T contribution
28
Profit for the year margin formula
PFTY/Revenue x 100
29
Operating profit margin formula
OP/Revenue x 100
30
Gross profit margin formula
GP/revenue x 100
31
Gross profit formula
Revenue - direct costs (costs of sales) = GP
32
Operating profit formula
Gross profit - indirect (operating/overheads)costs = Op prof
33
profit for the year formula
(Op profit + other profits)- taxation - net finance costs = PFTY
34
Market capitalisation formula
No. shares sold x share price = Market cap
35
Market share formula
Sales revenue / total market revenue x100 (over same period)
36
Price elasticity of demand (PED) formula
% change in demand / % change in price x100
37
Income elasticity of demand (YED) formula
% change in demand / % change in income x100
38
Labour turnover (%) formula
Number of staff leaving/total number of staff X100
39
Employee retention rate formula
No. employees who remained in period/ number of employees at start of period.
40
Employee costs as a percentage of turnover formula
Employee costs/turnover X100
41
labour costs per unit formula
labour costs/units of output
42
ROCE formula (return on capital employed %)
OP/ T capital employed (equity + NC liabs) X100
43
Capital employed formula
T equity + NC liabilities
44
Working capital (Net current assets) formula
Current assets - current liabilities
45
Net assets formula
T Assets - T liabilities
46
Total assets formula
Current assets + Non-current assets
47
Earnings per share formula
Profit for period/number of shares
48
Current ratio formula
Current assets / Current liabilities : 1 x :1
49
Gearing ratio formula
Non current liabilities / T equity + Non current liabilities
50
payables days formula
trade payables / cost of sales X365
51
receivables days formula
trade receivables / revenue X365
52
market growth (%) formula
Change in size of a market over a period/original size of the market X100
53
ARR/Annual rate of return formula
Average annual profit (use net cash flow) /cost of the investment (outlay) X100
54
Payback formula
(Not recovered/ Net CF next year x12) Amount of full years + ^
55
NPV formula
Present value = cash flow x discount value - Add all present values for each year - Positive = accept investment
56
Net current assets formula
Current assets - current liabilities
57
Net liabilities formula
Total assets - total liabilities
58
Net current liabilities formula
Current liabilities - Current assets
59
Critical path total float formula
Latest finish time (LFT) - Earliest start time (EST) - Duration = Total float - Float is spare time.
60
Equity formula
T Assets - T liabilities
61
What does total equity equal on a balance sheet?
Net Assets
62
Decision trees: Net gain formula
Expected value - costs
63
Inventory turnover formula
Cost of goods sold / average inventory.

BUSINESS STUDIES (8 decks)

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