Formulae
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- Created by: EllieBowser
- Created on: 13-06-17 11:11
Total costs
Fixed costs + Variable costs
1 of 44
Profit
Total revenue - Total costs
2 of 44
Total variable costs
Variable cost per unit x Number of units sold
3 of 44
Total revenue
Selling price per unit x Number of units sold
4 of 44
Market capitalisation of a business
Number of issued shares x Current share price
5 of 44
Net Gain (in a decision tree)
Expected value - Initial cost of decision
6 of 44
Market size (volume)
Quantity of goods and services produced in a particular market over a period of time
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Market size (value)
is the total sales revenue generated from selling all the goods and services produced in a particular market over a period of time
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Sales Volume
The quantity of goods and services produced by a particular business over a period of time
9 of 44
Sales Value
The total sales revenue of a particular business over a period of time
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Market Growth
Change in the size of the market / Size of the market in year 1 x 100
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Sales Growth
Change in sales of a product/ Sales of product in year 1 x 100
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Market Share (%)
Sales of business / Total sales in the market x 100
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Price elasticity of demand
Percentage change in quantity demand / Percentage change in price
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Price inelastic
Coefficient in the range 0 to -1
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Price elastic
Coefficient in the range -1 to -infinity
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Added value
Sales revenue - costs of bought in goods and services
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Labour productivity
Output per time period / Number of employees
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Unit costs
Total costs of production / Number of units of output produced
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Capacity utilisation (%)
Actual output in a given time period / Maximum possible output in a time period x 100
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Return on investment (%)
Return on investment (£) / Cost of the investment (£) x100
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Gross Profit
Sales revenue - Cost of sales
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Operating profit
Sales Revenue - Cost of sales - Operating expenses
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Profit for year
Operating profit + Profit from other activities - Net finance costs - Tax
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Variance
The difference between an actual and budgeted figure
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Contribution per unit
Selling price - Variable costs per unit
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Total Contribution
Contribution x Units produced or sold
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Total Contribution
Total revenue - Total variable costs
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Break even output
Fixed costs / contribution per unit
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Margin of safety
Actual level of output - Break even level of output
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Gross profit margin (%)
Gross profit / Sales revenue x 100
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Operating profit margin (%)
Operating profit / Sales revenue x 100
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Profit for year margin (%)
Profit for year / Sales revenue x 100
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Labour turnover (%)
Number of staff leaving during the year / Average number of staff employed by the business during the year x 100
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Employee retention rate (%)
(Number of employees at end of period - number of leavers) / Number of employees at end of period x 100
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Employee costs as percentage of turnover
Employee costs / sales turnover x 100
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Labour costs per unit
Labour costs / Units of output
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Return on capital employed (%)
Operating profit / (Total equity + non current liabilities) x 100
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Current ratio
Current assets / Current liabilities
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Gearing (%)
Non - current liabilities / (Total equity + non current liabilities) x 100
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Payables days
Payables / cost of sales x 365
41 of 44
Receivables days
Receivables / Sales revenue x 365
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Inventory turnover
Costs of goods sold / Average inventories held
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Average rate of return (%)
Net return from project (£) or number of years / Initial cost of project x 100
44 of 44
Other cards in this set
Card 2
Front
Profit
Back
Total revenue - Total costs
Card 3
Front
Total variable costs
Back
Card 4
Front
Total revenue
Back
Card 5
Front
Market capitalisation of a business
Back
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