Formulas

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  • Created by: Mario1100
  • Created on: 18-05-18 14:18
Break even point
Fixed cost/Contribution per unit
1 of 15
In a decision tree Net Gain
Expected value - Initial cost of decision
2 of 15
Market growth % in year'X'
Change in the size of the market between year X-1 and year X/Size of the market in year (X-1) × 100
3 of 15
Return on investment %
Return on investment (£)/Cost of the investment (£) x 100
4 of 15
Gross Profit
Sales Revenue - Cost of Sales
5 of 15
Return on capital employed ROCE %
Operating profit/Total equity + non-current liabilities x 100
6 of 15
Current ratio
Current assets/Current liabilities
7 of 15
Gearing %
Non-current liabilities/Total equity + non-current liabilities x 100
8 of 15
Inventory turnover
Cost of goods sold/Average inventories held
9 of 15
Margin of safety
Actual level of output - Breakeven level of output
10 of 15
Profit for year
Operating profit + Profit from other activities - Net finance costs -Tax
11 of 15
Labour productivity
Output per time period/Number of employees
12 of 15
Added value (value added)
Sales revenue-costs of bought-in goods and services
13 of 15
Market share %
Sales of one product OR brand OR business/Total sales in the market x 100
14 of 15
Price elasticity of demand
Percentage change in quantity demand/Percentage change price
15 of 15

Other cards in this set

Card 2

Front

In a decision tree Net Gain

Back

Expected value - Initial cost of decision

Card 3

Front

Market growth % in year'X'

Back

Preview of the front of card 3

Card 4

Front

Return on investment %

Back

Preview of the front of card 4

Card 5

Front

Gross Profit

Back

Preview of the front of card 5
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