Formulas Flashcards
(29 cards)
Variable costs
Output x variable cost per unit
Market cap.
Share price x no. of shares sold
Expected value
Probability x outcome
Net gain
Expected value - cost of decision
Market growth
Change in market size
—————————— x 100
Original market size
Sales growth
Change in sales
———————— x 100
Original sales
Market share
Sales of product
———————— x 100
Total sales of market
PED
Change in QD
———————
Change in price
YED
Change in QD
———————
Change in income
Unit costs
Total costs
—————
Total output
Labour productivity
Output
————
No. of staff
Capacity utilisation
Actual output
——————— x 100
Potential output
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Contribution per unit x output
Break even
Fixed costs
—————— x 100
Contribution per unit
Margin of safety
Actual output - break even output
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - expenses
Profit for the year
Operating profit - tax and interest
Capital employed
Total assets - current liabilities
OR
Total equity + non-current liabilities
ROI
Operating profit
———————— x 100
Capital employed
ROCE
Operating profit
——————————— x100
Total equity + non-current liabilities
Gearing
Non current liabilities (NCL)
—————————— x100
Total equity - NCL
Payables days
Payables
————— x 365
Cost of sales
