Formulas Flashcards
(45 cards)
Revenue (sales or turnover)
Selling price per unit X number of units sold
Variable costs (total variable costs)
Variable cost per unit X number of units sold
Total costs
Fixed costs + variable costs
Profit 1
Total revenue - total costs
Profit 2
Total contribution - fixed costs
Market capitalisation
Number of issued shares X current share price
Expected value of a decision with two possible outcomes
(Pay off of A X probability of A) + (pay off of B X probability of b)
Net gain
Expected value - initial cost of decision
Market growth
(change in the size of the market over a period / original size of the market) X 100
Market share
(Sales of one product OR brand OR business / total sales in the market) X 100
Added value
Sales revenue - costs of bought-in goods and services
Labour productivity
Output over a time period / number of employees
Unit costs (average costs)
Total costs / number of units of output
Capacity utilisation
(Actual output / maximum possible output) X 100
Return on investment
(Profit from the investment (£) / cost of the investment (£)) X 100
Gross profit
Revenue - cost of sales
Profit from operations OR operating profit
Gross profit - operating expenses
Profit for year
Operating profit + profit from other activities- net finance costs - tax
Gross profit margin
(Gross profit / revenue) X 100
Profit from operations margins OR operating profit margin
(Operating profit / revenue) X 100
Profit for year margin
(Profit for year / revenue) X 100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - variable costs per unit
Total contribution 1
Contribution per unit X units sold
